That sound you just heard was my jaw not hitting the floor in surprise.
“The ship sector followed the behavior and outcome of the aircraft industry more closely than that of the missile industry,” IDA said. “There appears to have been little consolidation-driven rationalization savings to the government in either case.”
It’s hard to know where to point the finger on this one. On the one hand, the two remaining major players, General Dynamics and Northrop Grumman, can’t just shut down some of the yards they acquire and truly consolidate. Northrop Grumman, for instance, can’t just decide to build aircraft carriers at Ingalls in Pascagoula instead of at Newport News.
On the other hand, the fact that there are only two major shipbuilders vying for big contracts means that whatever competition existed has mostly evaporated.
For more info on the Bush’s bow section being put into place, see CVN 77 takes a bow.
Fewer ships built by fewer competitors will never mean cost savings.