As the U.S. Navy grapples with significant challenges in its shipbuilding programs, South Korean shipbuilders are positioning themselves as potential solutions to improve the situation. John Phelan, the U.S. Secretary of the Navy, recently referred to the state of national naval construction as “a mess.” He highlighted major delays and budget overruns that are currently marring any such process. In stark contrast, South Korean companies like HD Hyundai Heavy Industries and Hanwha Ocean have demonstrated a smooth shipbuilding process that could provide valuable insights and assistance to U.S. efforts.
HD Hyundai Heavy Industries, the world’s largest shipyard, is a test case for efficient, streamlined production of new ships. This works facility in Ulsan features cutting-edge capabilities. It includes a huge shipyard building for hull assembly, which took 14 months to finish. Vice President Lee Jin at HD Hyundai Heavy Industries points out that in shipbuilding, nothing beats experience and accumulated skilled personnel means everything. People and years of experience always come before profits when it comes to shipbuilding.
The shipyard is set to construct highly advanced G staad-class frigates, which are 122 meters long and 3,100-ton frigates. The completion time is about three years per vessel. This timeline shows a highly disciplined, measured approach that stands in extremely stark contrast to the last decade of U.S. Navy execution.
Hanwha Ocean operates one of the world’s largest shipyards in Geoje. This facility is located on an island at the southern tip of the Korean Peninsula. This new facility would have an obvious logistical advantage. As an example, it now sources 90% of the parts and materials it needs within a 50-kilometer radius. This new capability increases throughput and reduces lead times. This means, in turn, that Hanwha Ocean becomes a more appealing choice for both commercial and military programs.
Seamless transitions
South Korean shipbuilders have become experts in maintaining quick executive transitions between military and commercial work. That flexibility dramatically enhances their operations and in turn profoundly increases national productivity. This is critical flexibility that further empowers the shipyards. It keeps them more productive across their consistent workflow and plants them to better respond when demand shifts back and forth between sectors.
Given the opportunity U.S. Navy firms have to see investment from South Korean counterparts, the climate is right for investment. Hanwha Ocean announced plans to invest $5 billion into Philly Shipyard in Pennsylvania, targeting commercial construction with the potential for military projects in the future. This investment highlights recent exemplary synergy between maritime industries in South Korea and the United States.
The current predicament faced by the U.S. Navy is starkly illustrated by Secretary Phelan’s remarks regarding project delays and budget issues. The reality deeply disappointed his optimistic hopes, as he once quipped, “I think our best project is six months behind schedule and 57% over budget, isn’t that awesome.” These kinds of statements indicate just how much we could be doing better with U.S. shipbuilding endeavors.
Last week, former President Trump took a short trip down the memory lane of the shipbuilding industry. My goodness, we really gave up the shipbuilding industry foolishly, many years ago. Yet as trivial as this shift may seem, this statement signals a profound change in direction. With South Korean companies racing to prove their strengths worldwide, the dependence upon overseas shipbuilders grows.
