What's Happening?
HII is expanding its shipbuilding capacity by partnering with shipyards and fabricators across multiple states to meet increased demand from the U.S. Navy. The company has doubled its outsourced hours in 2025 and plans to quadruple them within two years. HII's structural assembly network now includes 23 companies, contributing to outsourced modular assembly of ships. The company has acquired a manufacturing facility in Goose Creek, South Carolina, to produce submarine modules and aircraft carrier units. HII is also working with partners in Virginia and beyond to build structural assemblies for future submarines and aircraft carriers. This distributed shipbuilding model aims to enhance production efficiency and expand the U.S. shipbuilding industrial base.
Why It's Important?
HII's expansion of its shipbuilding capacity is crucial for meeting the U.S. Navy's growing demand for ships, which is vital for national defense and security. By adopting a distributed shipbuilding model, HII is able to increase throughput and improve schedule adherence, ensuring timely delivery of ships. This approach also supports job creation and economic growth in multiple states, as more companies become involved in the shipbuilding process. Additionally, HII's international partnerships with companies like Hyundai Heavy Industries and Babcock International Group aim to enhance technological innovations and maximize production efficiency, further strengthening the global defense industry.
What's Next?
HII will continue to evaluate additional work packages to include more U.S. shipbuilding partners, supporting the construction of future Navy ships. The company is also exploring innovative methods to expand defense and commercial opportunities internationally. As HII's distributed shipbuilding model evolves, stakeholders such as the U.S. Navy and defense industry leaders will likely assess its impact on ship production and national security.
