Consolidation in American Naval Shipbuilding

naval consolidation

In 1993, a bottom-up review concluded that declining demand after the end of the Cold War needed a restructured defense industry with fewer assets. During a Pentagon dinner that has come to be called the “Last Supper,” Deputy Secretary of Defense William J. Perry signaled to the industry that the Department would support consolidation. That policy lasted until 1998, and it had profound effects on the American defense industry.

In November 2008, the Institute for Defense Analysis submitted a report that looked at the effects of consolidation in the naval shipbuilding sector. Had it made a difference to the sector’s efficiency? The report offers an excellent introductory look at the merger and acquisition dynamics and rationales, then examines the American naval shipbuilding sector in some depth. Its conclusions?

“In summary, there are two main reasons that the ship sector did not rationalize as a result of the mergers.”

$49.1M from US, Canada for 160 More Target Drones

Gunnery practice

Jan 22/09: Northrop Grumman Integrated Systems Sector in San Diego, CA receives a $49.1 million modification to a previously awarded firm-fixed-price contract for another 160 BQM-74E Aerial Targets and associated technical data for the U.S. Navy (153, $46.8 million, 96%) and the Government of Canada (7, $2.25 million, 4%).