During a Senate Armed Services Committee hearing prior to the congressional recess, Sen. Tommy Tuberville (R-AL) spoke about China's expansion of their fleet.
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00:00Chairman Scott, for this hearing, I haven't been in this business long, but I've noticed shortcomings of shipbuilding since I've been on this committee and Armed Service Committee.
00:15We build components for submarines, the Columbia class and the Virginia class at Austin Mobile.
00:21Probably most of you know that.
00:22It's pretty new to us, but I've noticed the recruiting, as the Senator was alluding to, workforce.
00:30I know Austin has gone out and gone through fast food joints and everything else trying to find welders and people that can actually work and understand it.
00:39So it's an ongoing process.
00:44Admiral Weeks, how does this module production support your goal of increasing submarine construction rates?
00:52Sir, thank you for that question.
00:56So as we look at the constrained capacity in our primary build yards, it's really important that we recognize that broadening that shipbuilding industrial base,
01:08the shipbuilding base beyond those two yards, is really the opportunity we need to be able to, again, bring more folks to bear,
01:15bring, you know, different geographical regions to bear, and alleviate the strain on our primary yards, right?
01:22And that will then allow them to do most efficiently what only they can do, which is things like outfitting, final assembly, and testing.
01:30Have we seen an increase in production by doing this?
01:34Yes, sir.
01:34Sir, it has been, you know, anytime you put something new in a new facility that's not done that kind of work before,
01:39you expect that it's going to take a little bit of time to come up to speed, and that's exactly what's happening.
01:45But we're now, you know, especially with Austell, we've been on the path long enough now that we're starting to see the improvement that we expected.
01:52And both Admiral Rucker and I have been down to Austell multiple times, partnering with both Electric Boat and the company there
01:59to make sure that they're on track to get where they need to be, and, you know, they're doing well.
02:05Yes, sir.
02:06Yeah.
02:06You think it'll help us catch up with the Chinese and their expansion of their submarines?
02:11They're really, they're flying past us.
02:13You think it's going to be possible for this type of procedure to really help catch the Chinese?
02:18Yes, sir.
02:19I think it's absolutely critical that we expand our industrial base.
02:23That is the only way we're going to be able to compete.
02:25Yes, sir.
02:26Admiral Rucker, what can the Navy and Congress do to accelerate outsourcing of modular production?
02:33Thank you for the question, sir.
02:34I agree with everything Admiral Weeks said in the importance of outsourcing.
02:38Where we stand today, we have a goal by 2026 to get up to about 7 million man hours annually.
02:45That's equivalent of a surface ship destroyer from our submarine yards out to the industrial base.
02:50As of end of 2024, we were at about 3 million hours, so we're about halfway there.
02:55As Admiral Weeks said, we've been down to Austell.
02:58They've already delivered the first two large submodules for Virginia class.
03:03They've got three more that are working right now.
03:05The next one is going to be delivering this summer, and then they keep on going.
03:08We need that strategic outsourcing to increase the overall capability and capacity for large structural fabrication, machining, electrical.
03:15So we're going to continue to work with the shipbuilders to ensure that we can execute that efficiently and effectively.
03:22Admiral Moten, any thoughts on strategic outsourcing as a method to increase our shipyard output?
03:30Yes, Senator.
03:31I completely agree with my colleagues on the importance.
03:33I think it's a critical part of our strategy to, as you say, to improve our pace of shipbuilding.
03:39I would note in the example of Austell, the aircraft elevators for CVN 80 and 81 are both being built there as well.
03:47So we've done that.
03:48Closer to Hampton Roads, outsourcing has been an important part of Newport News shipbuilding strategy to improve on aircraft carrier production.
03:56They've gone to several suppliers to help with construction of modules, including a site just across the river in the Hampton Roads area that's focused on adding real estate and the ability to do panels more quickly to support our carrier shipbuilding.
04:12So I agree it's critical.
04:14Now, visiting Austell, I've noticed that, especially in submarines, nickel is a huge part of very important parts of the submarine.
04:23And our supply chain there, any three of you, can you give an update on do we have a better supply of nickel now?
04:32Is it getting worse?
04:33Because we don't have a lot of nickel in our country.
04:37Anybody want to answer it?
04:40Mr. Sermon?
04:41Yes, sir.
04:42Thank you for the question.
04:44Nickel, as you point out, sir, is among the fundamental metals and alloys that we're continuing to work with OSD.
04:51The Office of Secretary of Defense to take a very careful look at and address.
04:56As you pointed out, we do continue to have both price fluctuations, which are, of course, related to supply, but committed to addressing those, sir.
05:06Just one other question, if I could.
05:08Mr. Sherman, the Navy and Capstone Investments put $150 million each to buy land from Alabama Shipyard just recently,
05:18which is just next to Austell.
05:21Can you describe how this partnership came about and what's your plans for growing the industrial base using, you know, this land?
05:29Do you know anything about this?
05:31Yes, sir.
05:32I'm familiar.
05:33And thank you for the question.
05:33So, we talked about outsourcing, and we understand, as Admiral Rucker and Admiral Weeks pointed out, we're about three million hours into that outsourcing that we have to do annually.
05:49We have to get to seven.
05:50We need additional, as an enterprise, we need additional space.
05:54We need additional workforce.
05:55We need additional production.
05:57We've got a very promising work started at Austell.
06:01We've got work started at BAE in Jacksonville.
06:04We've got work started at Rhodes in Philadelphia as well that are really going to bring us into battery.
06:10But more land is needed.
06:13More, you know, waterfront land.
06:15And that facility that is Alabama Shipyard, actually 60 acres of that, 355 acres there, will remain as in battery, maintaining our military seal of command.
06:28Much of the rest of that, our intention in an opportunity zone public-private partnership is to work to bring that land into battery, much like it was.
06:37That exact same land was in battery, building Liberty ships and tankers during World War II, is to bring that in battery for supply chain activities, for submarine modules, and most importantly, from my perspective, advanced manufacturing that will fundamentally teach us across the entire industrial base, the entire nation, how to build ships, unmanned vehicles, and other kinds of naval activities better and more efficiently.
07:05Yeah, I'd love to get into the cell drone discussion, but thank you, Mr. Chairman.