ASA paints gloomy forecast

A report released last month by the American Shipbuilding Association (ASA) paints a gloomy forecast about the future of shipbuilding in the USA.

The ?Shipbuilding Industrial Base Survey and Report? centers on the fact that the current ship procurement plan by the Department of Defence leaves two production ?gap years?, i.e. 2005 to 2007. The ASA’s survey included shipyards and the contractors that support them, in 18 states and the resulting report states that 100% of respondents anticipate lost revenue, reduced revenue and increases in unit costs for the ships. It states that the nation’s six major shipbuilders will be forced to cut 70,000 employees by the end of 2009.

The report also highlights the shortage of US Navy warships in service, a characterization that is supported by many military leaders. The United States had 594 naval ships in 1987, compared to 297 today. Various military officials and organizations that analyze defense needs have said the nation needs anywhere from 310 ships to 375 ships to accomplish worldwide military operations.