HII using distributed shipbuilding to increase throughput

Modules produced at partner locations are helping HII imcrease shipbuilding throughpput.[Photo: HII]

HII (NYSE: HII) reports that it is partnering with shipyards and fabricators in multiple states to grow its throughput and meet the increased demand for ships by the U.S. Navy. With its customer’s support, HII is bringing the work to more companies and more jobs in more states, expanding the capacity of the U.S. shipbuilding industrial base and improving schedule adherence for all ships built by HII.

“HII is all in on our commitment to grow our throughput and turn out more ships at both yards more quickly for the Navy,” said Chris Kastner, HII CEO and president. “We’ve already doubled our outsourced hours in 2025 and we are on track to quadruple them in a two year period. Our hiring is up, our attrition is down, and our experience base is growing.”

HII’s structural assembly network, consisting of companies that contribute to outsourced modular assembly of ships, is at 23 companies and growing.

For Newport News Shipbuilding in Virginia, the most recent example of pushing work beyond the shipyard is HII’s acquisition of a manufacturing facility in Goose Creek, South Carolina. At what is now known as the company’s Charleston Operations, HII is committed to producing completed submarine modules and structural aircraft carrier units at the site, with significant room for future expansion. Additionally, HII has identified a number of key manufacturing partners in Virginia and beyond that are building certain structural assemblies for future submarines and aircraft carriers. This evolution to a more distributed shipbuilding model will expand production of the next generation of Navy’s fleet.

For Ingalls Shipbuilding in Pascagoula, Mississippi, select outfitted structural units for Arleigh Burke-class destroyers are being constructed, inspected and accepted at partner locations and later delivered to Ingalls for final integration. These partners were strategically selected beyond the company’s traditional labor market, at locations with existing skilled labor and facility capacity.

Early phases of this destroyer work are already underway with six different shipbuilding partners in multiple states. Additional work packages to include more U.S. shipbuilding partners are under evaluation. The current scope of this work will support construction of DDGs 135, 137 and 139.

In addition to securing outsourcing partnerships domestically, HII is exploring innovative methods to expand defense and commercial opportunities internationally and has created international partnerships to enhance technological innovations and maximize production efficiency. HII has international partnerships with Hyundai Heavy Industries (HHI) and Babcock International Group to enhance throughput and strengthen the shipbuilding industrial base. HII’s international partnerships aim to capitalize on mutual strengths, expand shipbuilding capabilities and explore new market opportunities that strengthen the global defense industry.