Shipbuilding’s Supplier Base: Outlook for the ’90s and Beyond
A review of the outlook for American shipbuilding and its supplier base as both enter the '90s is presented. The inexorable link between demand at shipbuilder level and revenue for suppliers mandates analysis of both macro and micro economic conditions. Included is a review of the shipbuilding industry, factors determining contracting levels and direction as well as the resultant impact upon domestic suppliers. As a focus for future action, the current status of the supplier base is presented, including projection of what fallout can be anticipated in light of the anticipated reduction in funding levels for naval shipbuilding. Recommendations for mitigating these impacts, including philosophical change in DOD contractor management strategies, development of a more commercially-oriented Navy and a revised focus for U.S. trade policy on shipbuilding, are presented. The paper concludes that the Government must work directly with shipbuilders and their suppliers to ensure that America maintains her capability to produce the warships necessary for defense and reestablishes her ability to maintain economic well-being via production of her own link to worldwide commerce.