0xffff2
13 hours ago
An interesting summary, but I don't think the article really answered the headline. In particular, I'm left wondering which is the bigger problem: Is it that the US ship builders aren't competent and have turned what should have been a fairly straightforward modification of an existing design into a huge boondoggle, or is it that the government requirements are poorly thought out and/or overly ambitious, resulting in costly redesign efforts that aren't really necessary?
Put another way, are we spending all this time and money to fail at simply building a ship that is functionally identical to one of these ~$300m Finnish ice breakers, or are we claiming we need something more sophisticated?
jahewson
12 hours ago
> Is it that the US ship builders aren't competent
Yes, they are woefully uncompetitive. They produce single-digit numbers of commercial oceangoing ships annually, at 2-4x the cost of elsewhere. It’s an industry on life support.
beloch
10 hours ago
Canada has the same problem with building icebreakers.
The problem with icebreakers capable of dealing with multi-year ice is that they're a very expensive and specialized kind of ship that's hard to construct, but also the sort of ship that has a very long lifetime. Only a few governments in the world have any need of such ships, and they typically only need a few in the span of many decades.
By the time Canada got around to looking for new icebreakers, not a single shipyard in the country had made one in many decades. Ordering a ship from someplace foreign that had actually made one recently would be cheaper than trying to make one domestically. However, then shipyards that haven't made an icebreaker for twenty years would become shipyards that haven't made one for forty years.
It really would make a lot of sense for close allies like Canada and the U.S. to collaborate on building icebreakers.
morkalork
6 hours ago
thfuran
10 hours ago
>However, then shipyards that haven't made an icebreaker for twenty years would become shipyards that haven't made one for forty years.
Is there really much difference?
elygre
2 hours ago
Possibly this:
In twenty years, the experience retires. In forty, it dies.
kjs3
8 hours ago
Well...it's reasonable for the shipyard to still employ folks with hands on experience 20 years later. I occasionally get tapped to pitch in on things I did 20 years ago (even if it's just "why the hell did you do this?"), and shipbuilding changes vastly slower than my gig. That's much less likely 40 years on.
Teever
9 hours ago
Yes. The longer that a shipyard goes with fewer and fewer contracts the more likely it is to go out of business.
And it's far harder to get a ship built at a yard that is out of business than one that isn't.
Sakos
7 hours ago
Also, shipyards that recently built one are more likely to get contracts to build more. Because other countries will be facing the same question.
bruce511
4 hours ago
More likely though isn't the same as likely. If I'm going to buy an icebreaker from a foreign supplier, sure the US is in the market, but they're still more expensive and take longer than Finland.
To get good at something, good enough that you're competitive on the world stage, you need to be building lots, iterating, getting feedback and so on.
The US coast guard doesn't have the need to kick-start that sort of scale of development. So it takes a fortune (think 10s of billions) to catch up to the Finns.
But the headline number is somewhat irrelevant. 300m sent to Finland is "gone forever". 1.1 billion spent in the US boosts the economy, and ultimately works its way back to the govt in taxes.
The benefits have little to do with "preserving skillset" and more to do with the economic benefit of circulating another billion in the local economy.
bostik
4 hours ago
> But the headline number is somewhat irrelevant. 300m sent to Finland is "gone forever".
Even with the quotes, as a Finn I find this statement rather tasteless.
Or would you also claim that cross-border trade with more nearby nations is "money gone forever"?
matips
an hour ago
>But the headline number is somewhat irrelevant. 300m sent to Finland is "gone forever".
You can make a deal that US buy icebreaker for 300M from Finland and Finns buy weapons from US for 300M. They need it because of Russia and you boosts US economy in other areas.
Ekaros
4 hours ago
You get 300 million asset. If that asset produces more than 300 million in economic value you would have generally missed, isn't it still decent investment? If you do not need icebreaking, why spend money in first place? And instead use it somewhere that you get both benefits from.
hintymad
9 hours ago
Curious why the US does not think this is a big problem. I mean, look at the US 80 years ago. The US easily out produced the Axis. We could produce faster and cheaper. There's really no excuse that the cost of making canon shells is 10x higher than Russia. Isn't being able to manufacturing cheaply the signature of a highly developed society? Besides, expertise is not just volumes of blueprints, right? We can only keep our expertise by actively doing. If the next war breaks out, how would the US win? By sending armies of lawyers and coders?
throwup238
9 hours ago
The US outproduced the axis towards the end of the war but it was a real mess for the first few years while industries retooled and the government broke through obstacles like the aluminum cartel. It was only after Pearl Harbor and the formation of the War Production Board in 1942 that manufacturing really picked up because everyone felt the existential threat and organized against it.
The US can’t make cheap artillery shells because we don’t have much artillery manufacturing. Our armies just don’t use much artillery. We use mostly guided munitions dropped from planes and rockets fired from the ground, whereas Russian doctrine has always focused on artillery.
hintymad
7 hours ago
> We use mostly guided munitions dropped from planes and rockets fired from the ground, whereas Russian doctrine has always focused on artillery.
Thanks for the specifics. I don't know about guided munitions, but I'd imagine a million dollar a rocket will be quite expensive for a prolonged war. Also, the US debuted a killer zone, Rogue 1, a few months ago, and it cost about $94K. $94K! I'm sure the drone is more advanced than DJI Mavic 3 Pro, but is it really 50 times more advanced even if we take the cost of military-grade into consideration? It looks to me the only explanation is that without a healthy manufacturing sector in the US, the cost of anything would go through the roof because we have lost the economy of scale.
adgjlsfhk1
4 hours ago
drone is an incredibly broad category and military ones have really good reasons for sometimes costing a ton more. the biggest reason is the need to deal with adversarial input. dealing with GPS spoofing, properly encrypted and jamming resistant spoofing, not leaking the location of the operator, etc all are really complicated requirements that need expensive mitigation (and worse, prevent you from using commercial components)
cpursley
9 hours ago
Russia is out producing the US on guided munitions and rockets fired from the ground as well (and missile defense). And icebreakers, of course.
So it’s doable - just depends on priorities (ie, moving chip manufacturing back which seems to have us recent success).
Sakos
7 hours ago
US shipyards and military production are extremely low on any number of metrics. It's unclear even now whether the US has enough stockpiles and enough production of modern munitions to maintain an active war against a peer adversary like China with such massive production capacity and such a massive population. At some point, you do need constant production of enough munitions, doesn't matter how smart or precise those might be.
Just recently a US navy tanker ran aground and now they're scrambling to find some way to fuel the carrier group in the middle east because for some reason that's the only one that was available. The navy logistics group is woefully understaffed und under-equipped.
What are the priorities in actuality? Because maintaining a military at adequate readiness doesn't seem to be at the top of the list.
hintymad
7 hours ago
> Because maintaining a military at adequate readiness doesn't seem to be at the top of the list.
I think Yamamoto Isoroku gave the answer to this challenge: just keep a booming manufacturing industry. When he was trying to convince the Japanese government not to have a war with the US, he said that he saw so many chimneys when flying over Philadelphia. All those factories would turn into a giant war machine if a war ever broke out.
That is, the economy of scale matters. When the US had its entire supply chain domestically, replacing a special screw could cost a few cents. When we were in good terms with China, it would cost a few dollars as we had to order the replacement overseas, but well, it was still cheap. Now that we are trying to cut China off, then what will do if we'd need to get a replacement? Setting up a shop from scratch with little expertise and no supply chain to back it up? Well, such replacement would then cost a few thousand dollars and we would be screwed.
roenxi
4 hours ago
> It's unclear even now whether the US has enough stockpiles and enough production of modern munitions to maintain an active war against a peer adversary like China
Is it? What is the theory that the US could keep up with China? That would be the US vs the globe's industrial superpower with an arguably larger real economy. It doesn't seem plausible that the US can fight a long sustained war.
The plan as far as I can see it is to make use of a large network of allies and partners as well as aiming to finish the war quickly by cutting off materials like food and industrial inputs to stall the manufacturing engine. If it turns into a slugfest where munition reserves start to matter that seems like it would favour China.
One of the big surprises out of the Ukraine war is that the US isn't in a position where it can easily bully Russia. If that is the case it is hard to see it coming out ahead vs China in any plausible conflict.
nradov
4 hours ago
Yes, the theory is that the USA should keep up with China and maintain a qualitative edge in order to contain them. Keep it up long enough and hopefully they will collapse or undergo an internal revolution, sort of like what happened to the USSR.
Spooky23
7 hours ago
I think the Navy is mostly obsolete and they are focused on key assets. Ship acquisition seems too dumb.
phil21
5 hours ago
> It's unclear even now whether the US has enough stockpiles and enough production of modern munitions to maintain an active war against a peer adversary like China with such massive production capacity and such a massive population.
I don't think it's unclear at all. It's uncomfortable to call out an obvious truth: We couldn't even compare. The only hope we have is basically economic mutually assured destruction. If it comes to a hot war, it better be over (without going nuclear) within weeks or at most single digit months or it's more or less over. At least from where I'm standing.
It's unclear if the US could even get production ramped up on the scale of a decade. We simply don't have the people to train the people we need. Much less the people with the skills to do the thing.
throwup238
5 hours ago
> If it comes to a hot war, it better be over (without going nuclear) within weeks or at most single digit months or it's more or less over. At least from where I'm standing.
Why? There is essentially zero chance that China can mount an invasion of the mainland US or even strike at its heartland enough to disrupt an industrial ramp up, even if it takes a decade (which it won't). The US can literally wait out anyone except Canada and Mexico (which... lol) by defending its coasts, with plenty of domestic natural resources - including agriculture, metals, and oil - to supply not just its military but the entire civilian population.
bruce511
4 hours ago
There is zero chance of China invading the US or vice versa. But this issue isn't about a ground war in either place, it's about a war in some 3rd place.
It's not about "home country". The US doesn't need carrier groups to defend home country. It needs them to project power into other parts of the world.
Take Taiwan. If China invades there that represents a significant dilemma for the US. On balance, they'll likely make a token response, then fade away. Places where the US has enjoyed power (like the South China Sea) might be harder to protect.
Does the US have the stomach for wars in Taiwan, Japan or Australia?
throwup238
4 hours ago
> There is zero chance of China invading the US or vice versa. But this issue isn't about a ground war in either place, it's about a war in some 3rd place.
Agreed
> It needs them to project power into other parts of the world.
China can barely project power in its own backyard while the US has nearly a century of experience projecting around the world, with eleven carrier groups to China's two. Assuming they all get destroyed by hypersonic missiles within the first few months, the US still has military bases all over the world. As far as I know, China has zero military presence in the Western hemisphere except some surveillance balloons.
China may have a short term advantage in production and cost but the US has the advantage in every other area of logistics relevant to a military.
> Take Taiwan. If China invades there that represents a significant dilemma for the US. On balance, they'll likely make a token response, then fade away. Places where the US has enjoyed power (like the South China Sea) might be harder to protect.
Absolutely but it'd be a pyrrhic victory worth little except as domestic propaganda. If the US does help defend Taiwan, the invading Chinese fleet will likely be massacred. There's little room to hide in the 80 mile wide Taiwan strait against modern anti-ship and anti-aircraft weapons. China's only real advantage will likely be air power, which doesn't win wars without lots of boots on the ground.
> Does the US have the stomach for wars in Taiwan, Japan or Australia?
I'm not sure about Taiwan, but I don't think we'd let Japan or Australia slip into war without assistance. (but what do I know? :-))
justin66
an hour ago
The recent incarnation of isolationism in American politics might manifest if the US had the wrong leadership during an invasion of Taiwan or, I guess, Australia.
Defending Japan is a reflex action. We have bases and troops there, as well as a mutual defense treaty.
ywvcbk
4 hours ago
The hypothetical war in Taiwan would likely be almost entirely naval/aerial so yeah the question is if US has enough political will. Don’t think artillery shells will be a huge factor and even on paper the Chinese navy (and probably the air force) doesn’t even come even remotely close to US (yet).
Actual invasions of Japan and Australia are even harder to imagine. How would that even work? And why?
Ekaros
3 hours ago
China-Taiwan situations is technically still a civil war. Internal conflict to "China". Like war between Confederacy and Federation forces.
It is unlikely that China will invade Japan and certainly not Australia. I find it extremely more likely that USA will invade Mexico with some fake pretence like war on drugs.
zmgsabst
3 hours ago
Artillery and particularly guided artillery like Excaliber rounds are highly effective at resisting landings.
In the most recent US wargame, China succeeded in occupying parts of Taiwan which would make artillery even more important — as attacks from the mountain regions towards Chinese occupation would keep them from establishing a secure foothold.
fpoling
2 hours ago
Excaliber became ineffective in Ukraine after Russia deployed effective jamming.
lostlogin
an hour ago
> Isn't being able to manufacturing cheaply the signature of a highly developed society?
Maybe. Or a it’s a sign that workers, the environment, or some other factor is being exploited for gain.
Spooky23
7 hours ago
You adapt. Ukraine is emptying the US armories to kill Russians at scale.
You get smarter/more accurate with the constrained supply of shells, adopt drones etc.
In the 80s, expensive Maverick missiles were the primary airborne tank killer. Now the Ukrainians are dropping mortars into tank hatches from cheap drones.
closewith
6 hours ago
That just moves the issue onto the production of drones.
brazzy
2 hours ago
> I mean, look at the US 80 years ago. The US easily out produced the Axis. We could produce faster and cheaper.
Read TFA. Faster, yes. Cheaper, no. Even after fully ramping up, Liberty ships cost considerably more to produce in the US than an equivalent ship elsewhere. In wartime that is acceptable. When you're producing for a global market, it's not.
wakawaka28
8 hours ago
>There's really no excuse that the cost of making canon shells is 10x higher than Russia. Isn't being able to manufacturing cheaply the signature of a highly developed society?
We have prioritized high wages for workers in the US, a phenomenon also driven by the reserve currency status of the dollar. Russians, Chinese, and Indians work for a fraction of the price we do. We have high labor costs and have to import many components due to them being made much cheaper elsewhere.
>We can only keep our expertise by actively doing. If the next war breaks out, how would the US win? By sending armies of lawyers and coders?
You're totally right. This war is coming very fast as well, and by some accounts has already started. I worry we will all soon find out just how bad of a position we are in, the hard way.
hintymad
7 hours ago
> We have prioritized high wages for workers in the US
I'm not sure if this is the dominating factor. Russia fired around 10,000 shells a day, and each costs about $1000. So for a year, Russia would have fired 3.65M shells that cost $3.6B. Let's say we need 100 workers to produce these shells. Then, he wage of the workers would cost merely $10M a year, if each one earns $100K a year. $10M over 3.65M shells, and that's just $3 a shell, or 0.3% of the cost of a Russian shell, or 0.075% of the cost of a US shell.
What the US lost was not advantage of labor cost, but the economy of scale. By the way, this is also what Tim Cook said. He said that Chinese labor not cheap anymore, but China has so much scale and expertise so that the output from China is still cheap. Again, economy of scale.
wakawaka28
5 hours ago
Are you kidding? Everything is outsourced because wages are high in the US. I can't believe I have to spell out such basic and obvious economic facts to presumably intelligent people.
>What the US lost was not advantage of labor cost, but the economy of scale.
We've lost a lot of things but the reason things are expensive here is NOT that we didn't have economies of scale. That issue came much later. You get to have scale in the first place by being economically competitive. When things are outsourced due to some other country using slave labor or else their workers surviving on a tenth of what you make in the US, that is when you lose economies of scale.
Literally the only way we could compete in an open market with countries that have cheap labor is to use automation. But even with automation, those machines can be set up anywhere in the world, and they will tend to go wherever it is cheapest to run them.
bruce511
4 hours ago
>> When things are outsourced due to some other country using slave labor or else their workers surviving on a tenth of what you make in the US, that is when you lose economies of scale.
There may be "Slave Labor" in some places, but the vast majority of people doing out-sourcing for US companies are very well paid (by local standards.) They are not "surviving" they are thriving.
living in the US is expensive. So prices go up to match. So wages go up. So materials go up. "National security" is expensive (and the US is obsessed by it.) 13% of the budget goes to the military. Protectionist tarrifs. Security theater like the TSA. All of this comes at a price.
The US has enjoyed a leadership role in world affairs, economic strength, influence etc for 75+ years. But it turns out that "expensive is the head that wears the crown".
I say this not as a criticism, merely as a statement of reality. Of course, whether it changes, or indeed even discussing if it should change is debatable.
hintymad
5 hours ago
I believe initially yes, wage is a big factor. It's just that now the wage gives way to the economy of scale (maybe regulation plays a big role too). It's pretty sad too. The capital wants returns and growth, at the cost of weakening a country for generations to come.
fifteen1506
8 hours ago
I'm pretty sure costs have gone up not due to workers' salaries...
wakawaka28
5 hours ago
I wasn't talking about a change in costs. Costs have been high in the US for a very long time. What matters in terms of industry is that the rest of the world is coming online and their products are much cheaper than ours, mostly due to cheap labor and the currency exchange rates. Cost increases of domestically sprouted goods in terms of dollars are overwhelmingly driven by inflation.
fsckboy
4 hours ago
>woefully uncompetitive. They produce single-digit numbers of commercial oceangoing ships annually, at 2-4x the cost of elsewhere
unions and pro union legislation makes US shipbuilding uncompetitive. it also ruins US merchant marine. We could encourage it, but the world market is fairly competitive so we don't really need to, except for defense.
throwaway290
38 minutes ago
The question was, is it uncompetitive because self-imposed requirements/limtiations are stricter or because of lack of competence. You are answering something else
delfinom
11 hours ago
The same industry is currently crying they can't people to work the shipbuilding jobs. Heh
faangguyindia
10 hours ago
Recently OpenAI is failing to compete with Google's hardware and has asked US government for 5Gigawatt data center.
potato3732842
12 hours ago
Don't forget that RFPs for this sort of thing get massively stuffed with pork so they're doomed to be bloated even regardless of the quality of the contractor who does the implementation.
They love including requirements that all but mandates a specific vendor's product because that vendor is a key employer in the district of some rep's who's vote they need or has a good lobbyist or whatever.
lcnPylGDnU4H9OF
12 hours ago
> Put another way, are we spending all this time and money to fail at simply building a ship that is functionally identical to one of these ~$300m Finnish ice breakers, or are we claiming we need something more sophisticated?
It sounds like it is the former.
> If and when the ships are completed (currently 2029 for the first vessel at the earliest), they are expected to cost $1.7-1.9 billion apiece[0], roughly four to five times what a comparable ship would cost to build[1] elsewhere.
0: https://www.cbo.gov/system/files/2024-08/60170-Polar-Securit...
1: https://sixtydegreesnorth.substack.com/p/the-silicon-valley-...
SubiculumCode
5 hours ago
This episode of War on the Rocks: goes into some depth on the issue, if interested: Can ICE Pact Salvage American Shipbuilding?
Episode webpage: https://warontherocks.libsyn.com/can-ice-pact-salvage-americ...
Media file: https://traffic.libsyn.com/secure/warontherocks/WOTR_-_Icebr...
wakawaka28
8 hours ago
Labor is much more expensive in the US than elsewhere. That is the overwhelming burden in every industry. We need protectionist laws to guarantee that we can manufacture what we must have for strategic reasons, at minimum.
JumpCrisscross
5 hours ago
> Labor is much more expensive in the US than elsewhere. That is the overwhelming burden in every industry
This is true. But it’s not the root cause for our shipbuilding problems. Our dockworkers and shipbuilders are uniquely inefficient.
ywvcbk
3 hours ago
I’m not sure labor costs could explain the difference the supposedly 5x difference in cost between Finland and the US. Labor is only a fraction of the overall cost and the difference is not that huge (e.g. average wage is $63k vs $50k).
It’s more likely that US workers (in this sector) expect to get paid $100k to produce $20k of value (relative to other countries)
mattmaroon
10 hours ago
The root cause is that naval warfare has practically no role in national security and hasn’t in a long time.
Even ignoring nuclear weaponry and mutually assured destruction, ships are expensive and fragile. They are easily destroyed from above or below, which makes them only useful against nations that don’t have modern military technology. If you need a floating platform to fight Houthi rebels they’re useful, if we’re facing an actual invasion they’ll be worse than useless.
As a result there’s not much pressure to get it right. If breaking ice were an activity that our national security relied upon I have no doubt we would be building them quickly.
kjs3
8 hours ago
Ships are useful for more than combat. Even icebreakers.
mattmaroon
8 hours ago
Didn’t say they weren’t.
But if they were useful for national security we’d be building them just fine.