American Shipbuilding Association

Administration Requests Only Four Ships for FY 2006

Confirming speculation that 2005 will be a dismal year for U.S. national security funding, the Administration’s FY 2006 budget submission to Congress slashes national security funding for naval ships and requests only four new ships - one Virginia-class submarine, one LPD-17, one littoral combat ship, and one T-AKE .  The request of $6.2 billion for new construction is $3.2 billion less than what Congress appropriated last year for eight new ships.  Additionally, the budget proposes postponing the construction of the CVN-21 aircraft carrier by a year and prematurely decommissioning the USS John F Kennedy aircraft carrier, thereby dropping our aircraft carrier force levels from 12 to 10.  The budget provides advanced procurement funding only for the DDX class of destroyer and the LHA(R) large deck amphibious assault ship, rather than full funding for each ship. 

At a time when the United States does not have enough ships to fight the war on terrorism, or respond to potential emerging threats such as China, the failure to invest in our naval fleet is extremely dangerous for this country.  Several members of Congress have already expressed alarm with the anemically low shipbuilding budget.  “Given the considerable construction time for naval ships, the United States does not have the luxury of time in the business of rebuilding America’s Navy.  This budget puts our national security and tens of thousands of highly skilled jobs and specialized manufacturing companies across the country at risk. Once these skills and facilities are lost, we will not have the capability to restore our naval preeminence in the world”, stated Cynthia Brown, President of the American Shipbuilding Association.

While the message has been sent by the Administration that the health and viability of the Navy and U.S. shipbuilding industry are apparently secondary to America’s national security, Congress will begin preparing its response to the budget – a response that will address the fate of the Nation’s security and ability to build naval ships to meet security threats. 

ASA Announces New Officers 

The New Year was marked with a change in officers for the American Shipbuilding Association.  John Casey, President of General Dynamics Electric Boat, Groton, CT, has been elected Chairman of the Board of ASA for calendar years 2005 and 2006.  Mike Petters, President of Northrop Grumman Newport News, VA, has been elected the Association’s Vice Chairman.

John Casey earned his BS degree in Civil Engineering at Worcester Polytechnic Institute, his MBA from Rensselaer Polytechnic Institute, and his MS in Management from MIT’s Alfred Sloan Fellows Program.  He joined Electric Boat in 1979 where he has served in numerous supervisory and operation management positions before being appointed the company’s president in October of 2003.

The ASA Vice Chairman, Mike Petters, joined Newport News Shipbuilding in 1987 where he has held a number of increasingly responsible positions throughout the shipyard.  These include production supervisor for submarines, marketing manager for submarines and aircraft carriers, Vice President for Aircraft Carrier Programs, and Vice President for Contracts and Pricing.  He assumed the position of president of the company in 2004.  Mr. Petters is a graduate of the U.S. Naval Academy and earned his MBA at the College of William and Mary.

Gerry Lamb, Director of Government Relations at General Dynamics Marine Operations has been appointed to serve as Secretary/Treasurer.

Congressional Delegation Expresses Concern Following China Visit

“…We weren’t sure whether they [China] were going to be
our best friend or our worst enemy…”
Rep. Randy Forbes (R-VA)

Following a visit to assess military and economic trends in China and South Korea, Rep. Randy Forbes (R-VA) believes that Congress must focus immediate attention on the intentions of China.  Joined by Reps. Ike Skelton (D-MO), Neil Abercrombie (D-HI), Rick Larsen (D-WA), Jeff Miller (R-FL), Joe Wilson (R-SC), Jim Cooper (D-TN), Phil Gingrey (R-GA), Steve Pearce (R-NM), and Delegate Madeleine Bordallo (D-Guam), the delegation had an opportunity to see first hand the resources China is devoting to modernizing and expanding its military.  While recognizing the opportunities for China and the United States to work together, the United States must nevertheless be vigilant to the possibility of hostility between the two countries. 

Part of the congressional visit included tours of Chinese shipyards, military facilities, and steel mills.  Numerous reports have discussed the explosive build-up of the Chinese shipbuilding industry, and how China has acknowledged that it wishes to become not only the world’s premiere shipbuilder, but a superior naval power.  The American Shipbuilding Association has completed several analyses and projections that estimate the Chinese navy will surpass the size of the U.S. Navy around 2015.  Members of the Congressional delegation confirmed after touring the facilities that China might very well dominate world shipbuilding in a decade. 

In an interview that appeared in a January 24, Defense News article by William Matthews, Forbes expressed concern with the weapons China is purchasing and “whether they are intended as defensive or offensive arms.”  Urging Congress to examine the technology China is acquiring from U.S. companies, Forbes commented that “one of the concerns we have is the whole dual-use situation – in which China buys technology that can be put to civilian or military uses…”  He urged the House Armed Services Committee to “determine which dual-use products pose a potential threat to the United States and whether U.S. agencies have any intelligence concerns about individuals or companies conducting business that involves technology transfers to China.”

The American Shipbuilding Association expresses hope that Congress will begin to seriously examine the build-up of the Chinese navy and military, and the threats posed to both the U.S. defense manufacturing base and the security of the entire country.      

Florida Delegation Leads Fight to Save U.S. Aircraft Carrier Fleet 

The Administration’s proposal to cut the Nation’s aircraft carrier fleet has sparked action by members of the Florida and Virginia delegations.  Citing the national security needs of having a strong carrier fleet, Senators Bill Nelson (D-FL) and Mel Martinez (R-FL), and Representative Ander Crenshaw (R-FL) have introduced legislation that would establish a minimum force structure of 12 aircraft carriers.  The legislation,HR 304 and S 145, titled The Aircraft Carrier End-Strength Bill is co-sponsored by Senators George Allen (R-VA) and Jeff Sessions (R-AL), and Representatives John Boozman (R-AR), Corrine Brown (D-FL), Eric Cantor (R-VA), Duke Cunningham (R-CA), Jo Ann Davis (R-VA), Susan Davis (D-CA), Thelma Drake (R-VA), Randy Forbes (R-FL), Alcee Hastings (D-FL), Connie Mack (R-FL), Kendrick Meek (D-FL), John Mica (R-FL), Jeff Miller (R-FL), Ted Poe (R-TX), Adam Putnam (R-FL), Bobby Scott (D-VA), E. Clay Shaw (R-FL), and Cliff Stearns (R-FL). 

The decision to remove an aircraft carrier from service and delay construction of another in order to cut costs is not a new concept for DOD, as is evident from its FY 2006 budget for only four new ships, with the proposed future cuts, delays, and early terminations to almost every shipbuilding program.  Past analyses have cited that more carriers, not fewer are needed.  The Chief of Naval Operations, ADM Vern Clark has previously stated that “aircraft carrier force levels have been set at 12 ships as a result of fiscal constraints; however, real world experience and analysis indicated that a carrier force level of 15 ships is necessary…” 

Aircraft carriers are in constant demand all over the world.  The missions in Afghanistan and Iraq would not have been possible without our carriers and submarines, destroyers, amphibious and logistic support ships, particularly since land bases were denied to the United States.  Fewer carriers mean fewer places the United States can be in the world, either as a moveable tactical platform or as a peaceful presence to stem hostilities that may otherwise lead to war.  Cuts in the number of carriers also lead to cuts throughout the fleet – fewer carriers mean fewer carrier battle strike groups, which will result in cuts in the number of destroyers, cruisers, frigates, submarines, and support vessels.  “Though the government is facing fiscal constraints, cuts to our national security in time of war are not responsible,” said Cynthia Brown, President of the American Shipbuilding Association.

INDUSTRY NEWS
U.S. Pioneer Joins ASA

ASA welcomes U.S. Pioneer, Inc., as a new Partner.  Located in Tulsa, Oklahoma, the company is a leading designer and manufacturer of switches, lighting fixtures, receptacles, junction boxes, terminal boxes, and other electrical equipment for naval ships.

Stand Up for the Future of the Nation
Become a Sea Power Ambassador

Congress is evaluating the President’s FY 2006 Budget submission and preparing to make decisions that will impact the future of our naval fleet.  Make sure your voice for a strong Navy is heard - Become a Sea Power Ambassador!  All it takes is the click of a button to ensure your Senators and Representative know that our national security, the safety of our Sailors and Marines, and the future of this Nation are important to you.  Visit www.seapowerambassador.org to register.  Do It Today! 

Well Said!

“There’s no question our Navy is the best in the world.
But the U.S. Navy is shrinking while China’s grows. 
At some point, sheer numbers start to matter.”

Rep. Randy Forbes (R-VA)
Following Congressional visit to China
Excerpted from Defense News article
January 24, 2005