What's Happening?
HII, America's largest shipbuilder, is expanding its shipbuilding capacity by distributing work to partner companies across the United States. This initiative, highlighted at the U.S. Navy League’s Sea-Air-Space Exposition 2026, aims to meet the growing
demand for ships by increasing the share of shipbuilding work distributed to partners. The strategy is expected to create over 1,000 additional jobs in 11 states and utilize 25 locations for building warships for the U.S. Navy. HII's distributed shipbuilding strategy involves extending the construction of major structural units and modules beyond its primary shipyards in Virginia and Mississippi to regions with available facility capacity and skilled labor. This approach has already increased shipbuilding throughput by 14% in 2025, with similar gains targeted for 2026.
Why It's Important?
The expansion of HII's shipbuilding capacity is significant for several reasons. It strengthens the U.S. Navy's capability and capacity by improving schedule performance and expanding the maritime industrial base. The creation of over 1,000 jobs across 11 states not only boosts local economies but also enhances industrial base resiliency. By outsourcing more than 2.5 million hours of shipbuilding work, a 30% increase from 2025, HII is enabling more work to be completed outside the shipyard before final assembly. This distributed approach allows for faster delivery of ships to the fleet, supporting national security and defense capabilities. The initiative also spreads the economic benefits of shipbuilding across the United States, reinforcing the country's defense infrastructure.
What's Next?
HII plans to continue expanding its structural assembly network of partner companies, allowing more work to be completed outside the shipyard. This includes outsourcing more than 2.5 million hours of shipbuilding work in 2026. The company is also focusing on leveraging the skilled workforce along the Gulf Coast to build and outfit units in their facilities, which will arrive ready for integration at the shipyard. This strategy is expected to further improve schedule performance and support the U.S. Navy's mission to protect peace and freedom globally. HII's growing network of manufacturing partners will continue to play a crucial role in this expansion, contributing to the construction of aircraft carriers, destroyers, and submarines.
