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A STATUS REPORT ON NAVY SHIPBUILDING AND REPAIR SENATE APPROVES $1 BILLION FOR SEALIFT SHIP PROCUREMENT By James R. McCaul IMA Associates, Inc., Washington, D.C. The U.S. Navy continues to be the major source of business for shipyards and marine equipment manufacturers in the United States. This article is an excerpt from re- cent IMA quarterly business reports on Navy shipbuilding and repair. Navy Shipbuilding The Navy plans to build 90 ships and perform three major modifica- tions/conversions over the next five years (FY 1990-94). The breakdown of this program and a comparison to FY 1989 is provided in Exhibit 2. As of early November, Congress had not yet passed either an autho- rization or appropriation bill for de- fense spending. Exhibit 1 shows the status of funding for the proposed FY 1990 shipbuilding program. This information is as of 1 November. The Senate recently approved $1 billion for procurement of four fast sealift cargo ships and two sealift tankers. This past summer, a simi- lar measure was included in the approved House Defense Appro- priations Bill. Projected 5-Year Navy Spending Program 1990-1994 (as of November 1989) Projected Annual Spending ($ in billions) New Ship Construction Ship Repair/Modernization Electronics & Systems Weapons RDT& E from 10 to 12 from 4 to 6 from 5 to 6 from 5 to 7 from 9 to 11 Annual Total from $33 billion to $42 billion PROJECTED FIVE-YEAR TOTAL" from $165 billion to $210 billion "Total does not include spending for aircraft December, 1989 27
