Senate Hearing: Tariffs' Impact on Nuclear Submarine Construction Costs

Submarine Workforce and Hiring

• ⚓ Submarine construction relies heavily on a skilled workforce, with significant progress noted in hiring efforts.
• 📈 Between 2022 and 2023, there was a 41% increase in hiring across both major shipbuilders.
• ⚠️ While hiring goals were met in 2024, challenges remain in reducing workforce attrition, particularly among those with 1-2 years of experience.

Workforce Challenges and Support

• 💰 Wages are identified as a critical factor in attracting and retaining skilled labor for submarine and aircraft carrier construction.
• 🤝 Continued congressional support and funding, including $5.7 billion from an emergency supplemental, with $520 million earmarked for wages on current contracts, are crucial.
• 🗣️ Ongoing contract negotiations with unions are important for addressing worker needs amidst rising prices.

Material Costs and Tariffs

• 🏗️ The production of Columbia and Virginia class submarines depends on specialized materials like nuclear-grade steel and high-yield steel alloys.
• 📉 The supply base for these materials has shrunk significantly over the years, from 17,000 suppliers in the 1980s to around 5,000 currently.
• ❓ The Navy anticipates potential cost increases due to tariffs on these specialized materials, but the exact impact is too early to assess.
• 📊 The cost of procured items, especially in the commodity space like steel, is largely influenced by market fluctuations.

Submarine Program Timelines

• ⏳ The Columbia class submarine is currently projected to be 12-18 months late from its contract schedule, though efforts are underway to recover time.
• 🚢 The second ship, Wisconsin, is on schedule for its 80-month contract delivery.
• 🚀 For the next five ships in the Columbia class, construction is in the early phases, and delivery schedules are still being evaluated, but current activities are on track.
• 🗓️ The Columbia is expected to be ready closer to 2029, Wisconsin in 2032, and the subsequent ship, Graten, in 2034.