American Shipbuilding Association

Senate Action Will Shrink Naval Fleet

On the eve of August recess adjournment, the American Shipbuilding Association (ASA) expressed its dismay with the Senate action to cut two ships from the President’s budget request.  The zeroing of two T-AKE Combat Force Logistics Ships in the Senate version of the Defense Appropriations legislation reverses positive steps the Administration took in its fiscal year 2004 budget to increase the rate of naval ship production from five to seven to shore up a rapidly shrinking Navy.  “The security of every American is put at risk when the Nation fails to provide for a Navy of the size and capability to defend our homeland,” said Cynthia Brown, President of ASA.

The President’s fiscal year 2004 budget was finally moving in the right direction by increasing the annual construction of naval ships from five to seven, and by embracing smart business practices and acquisition policies to reduce the unit cost of ships for the taxpayer.  The Senate’s move to cut $722 million for the construction of two T-AKE’s will result in an increase in the unit cost because the price of each ship was based on a specific quantity and production schedule to allow the shipbuilder to offer the lowest possible cost to the Navy.  If the funding is not restored in conference on the Defense Appropriations Bill, there will be disruption throughout the industrial base and more highly skilled workers will be thrown out of work. 

ASA is also disappointed that the House and Senate have not approved the President’s budget recommendation for a multi-year procurement (MYP) contract for seven Virginia Class Attack Submarines (SSN-774), which will save the taxpayer more than $1 billion and increase production of submarines to two per year to sustain a risk constrained force level of just 55 submarines.  The Senate approved MYP for only five submarines, while the House rejected the multi-year altogether.  The Senate Appropriations Committee has stated that it is premature to commit the Navy to procure more than one submarine a year for FY 2004-2009.  Maximum savings cannot be achieved without a commitment from Congress to embrace the President’s plan to purchase seven SSN-774 submarines over the next five years under a multi-year procurement contract. 

Too few ships in the Navy’s inventory have stretched the Navy past its breaking point.  The Navy’s inventory of 299 ships is woefully inadequate to respond to threats around the world.  This Nation faces an impending crisis.  Congress needs to act now to rebuild the Navy.    

Vice President Cheney Speaks In Support of Naval Ships

During his keynote address at the commissioning of the USS Ronald Reagan, Vice President of the United States Dick Cheney hailed the role aircraft carrier battle groups play in the day-to-day protection of this country.    

Commenting that “our military gains a hundred thousand tons of American ingenuity and American power”, Vice President Cheney noted that as the Reagan sails into a world in turmoil, carriers play a decisive role.  Naval ships are mobile, lethal bases at sea that can operate anywhere in the world, without the permission of a foreign government, as has been demonstrated in Afghanistan and Iraq.  Citing examples of the carrier’s strength, the Vice President recalled that “on the morning of September 11th, 2001, the aircraft carrier USS Enterprise was heading home to Norfolk.  Within moments, the ship reversed course, and by the next day, was within striking distance of Afghanistan, awaiting further orders.  It was soon joined by the Carl Vinson, the Kitty Hawk, the Theodore Roosevelt, and the Stennis.  Many of the combat missions supporting ground operations in Afghanistan came from these carriers, and gave the Taliban its first and last glimpse of American air and sea power.”  Vice President Cheney added that “carriers were deployed with equal effect in the liberation of Iraq.  That conflict signaled a new era in warfare, in which precisely targeted weapons launched from great staging bases at sea enabled us to destroy the command centers of an enemy regime, while sparing civilians and leaving infrastructure intact… There is only one Navy in the world that can project its might and its mission to the farthest corners of this earth.”

The Vice President’s statements reinforce that the United States must continue to support a naval fleet of adequate numbers and capability to defeat threats and ensure our peace.  It is also clear our safety and security are dependent upon the American ingenuity and skills required to build naval ships.  The Vice President praised this ability by reminding the public that “there is only one nation in the world that has the resources and the skills needed to build a nuclear-powered warship of this size and capacity…”

However, as our naval forces are being called upon more and more in the defense of this nation, the fleet is stretched perilously thin, with older ships being retired faster than newer ships are being built.  The U.S. naval fleet currently has 299 ships.  The current naval fleet is smaller than the fleet of 1917, and is a far cry from our Cold War fleet of about 600 ships.  The Administration is procuring only six ships a year on average, which is the lowest build rate since 1932.  Because it takes three to seven years to construct these ‘cities at sea’, the United States must increase naval ship production to a minimum of 12 ships a year or the fleet will continue its dive toward 180 ships.  This number is inadequate to provide power projection, deter world conflicts and when deterrence fails, respond decisively. 

OSHA Alliance Agreement Signed

During a July 15th ceremony an Alliance Agreement was signed by the Occupational Safety and Health Administration (OSHA), the American Shipbuilding Association (ASA), and the National Shipbuilding Research Program (NSRP).  The agreement pledges that the signing parties will work together to proceed in a culture of injury and illness prevention in the shipbuilding and ship repair industry for the advancement of safety and health for employees. 

John L. Henshaw, the OSHA Administrator, stated “putting our minds, signatures, and heads together to say we are going to focus on the safety and health of workers is the right thing to do” and “who can argue that safety and health is not the most important thing for our workers?”

Paul Robinson, Vice President of Ingalls in Pascagoula, MS, signed on behalf of ASA and commented that “we have the benefit of being able to talk to one another – the regulatory agency, labor, and management.  Open dialogue is the key to any successful program.”    

The Alliance Agreement reflects the steadfast commitment of the shipbuilding industry to continue its on-going effort to work in concert with OSHA in order to reduce injuries and illnesses associated with the workplace environment of a shipyard. 

The Agreement also symbolizes the desire of ASA and its member shipyards to build upon the accomplishments that have been achieved through the proactive and far-sighted activities of the Maritime Advisory Committee for Occupational Safety and Health (MACOSH), and to perpetuate the philosophy that the interests of the shipbuilding industry and its employees are best served by constructive dialogue and action.  The safety and health of all shipbuilding employees are of paramount importance, and the Alliance Agreement fosters and supports this objective.  

Save the Date

ASA announces the second of this year’s Sea Power in the 21st Century Forums.  The forum will take place on Tuesday, September 16th from 11:30 AM to 1:00 PM in room SH 902 of the Hart Senate Office Building.

Senators Trent Lott (R-MS), Mary Landrieu (D-LA), and Admiral John Nathman, Deputy Chief of Naval Operations for Warfare Requirements & Programs will speak on the declining state of American naval forces and specifically the Nation’s surface combatant fleet.   Paul Robinson of Ingalls and Dugan Shipway of Bath Iron Works will present the industry perspective. 

The purpose of these forums is to increase awareness of the critical role of Sea Power in defending the security of America, and the increased risk to our security as the Nation allows our Sea Power fleet to decline.

A light lunch will be served, so please RSVP to ASA at 202.544.8170.  We look forward to seeing you on September 16th.

Well Said!

“As the USS Ronald Reagan comes to life today, I can assure you that as shipbuilders, and as Americans, we will keep a watchful eye as she sails the world, serving as an instrument of diplomacy and peace.  And if necessary… as a mighty response to war.”

Tom Schievelbein
President, Newport News Shipbuilding
Commissioning of the USS Ronald Reagan
July 12, 2003