The U.S. Navy’s prime civilian stated Tuesday that the service would look into the idea of using overseas companions to fabricate the nation’s warships because it seeks to handle its rising shipbuilding wants.
Navy Secretary John Phelan informed reporters at a media roundtable at Sea-Air-Area 2026 in Washington that the Navy was going through a labor capability drawback at dwelling and wanted assist remediating it.
“Every part’s on the desk,” Phelan stated. “We simply want to take a look at it, perceive it, perceive the implications behind it and determine if we expect that is sensible or not.”
The secretary cited earlier profitable upkeep, restore and operations (MRO) work with Korea and Japan as examples of how allies may alleviate strain on the U.S. shipbuilding workforce.
South Korean shipbuilding firms HD Hyundai Heavy Industries and Hanwha Ocean have already received three MRO contracts from the U.S. Navy in 2026, in accordance with The Chosun Day by day, a South Korean publication.
The vast majority of South Korean MRO contracts are for U.S. Navy ships based mostly within the U.S. Navy’s seventh Fleet, headquartered in Japan.
Chief of Naval Operations Adm. Daryl Caudle met with South Korean shipbuilders in November 2025 throughout his first worldwide journey as CNO, studying about shipbuilding practices that might assist reinvigorate the U.S. maritime industrial base.
Phelan on Tuesday additionally stated the Navy was going to try to revise contracting and the methods through which shipbuilders might be incentivized to work quicker.
“One of many issues we’re going to do in our contracting is in case you beat schedule, you’re going to get a bonus, however you’re going to share it with the employees,” Phelan stated.
And there’s proof to counsel firms are up for the problem.
Contractors who obtained multi-ship orders had been able to shaving eight to 11 months off of constructing that very same ship, Phelan stated.
The proposed $1.5 trillion fiscal 2027 Protection Division funds is asking Congress for $65.8 billion to dedicate to shipbuilding, particularly 18 battle power ships and 16 auxiliary ships meant to meet the Golden Fleet initiative President Donald Trump introduced final December.
The U.S. Navy’s present fleet sits at almost 300 ships, however the service has beforehand introduced a aim of boosting that quantity to 381 over the subsequent 30 years.
Riley Ceder is a reporter at Army Instances, the place he covers breaking information, prison justice, investigations, and cyber. He beforehand labored as an investigative practicum pupil at The Washington Put up, the place he contributed to the Abused by the Badge investigation.
