The Navy has been constructing many new aircraft carriers, including the Forrestal, Seawolf, and the new USS New York. Is this, however, a good idea? In this essay, we will look into the issue. We examine the numerous causes that contributed to the decision and speculate on what the future may bring.
The US Department of Justice has filed a lawsuit against General Dynamics Corporation in order to prevent the business from acquiring Newport News Shipbuilding Inc. If approved, the combination would create the sole manufacturer of aircraft carriers and nuclear-powered submarines in the United States.
General Dynamics would buy all of Newport News' assets, including its nuclear submarine design and construction facilities, under the terms of the agreement. It would also have authority over the construction of Navy support ships and commercial oil tankers. General Dynamics would also become the only manufacturer of nuclear submarines.
The combination would diminish rivalry in surface combatant design and construction, reducing the chance of conflict between nuclear-powered and conventionally propelled ships. It has the potential to reduce rivalry in propeller design, machinery noise isolation, and hydrodynamic flow.
However, it also raises a broader set of antitrust concerns. For example, for the past two years, GD has been attempting to become the exclusive manufacturer of nuclear submarines. Furthermore, General Dynamics may deny Northrop Grumman access to certain nuclear submarine technologies.
The USS Forrestal was not only the first super carrier, but it was also the first to fly jet aircraft. This was a significant accomplishment for the United States. But it was merely the first of several Forrestal class ships. These ships served as the cornerstone for all subsequent US carriers.
A monopoly has been established between the Navy and Newport News Shipbuilding. That is, they are the exclusive manufacturers of nuclear submarines. This is significant for the Navy since the nation will be unable to respond to national emergencies unless it continues to participate in attack submarine programs. Furthermore, it is critical to the future of the two shipyards.
To address this issue, the Navy created a design-build process of building naval ships. Contractors can significantly reduce the number of design revisions by employing this strategy. Contractors can save money and time by using computer software.
The Navy and Newport News Shipbuilding established a shipbuilding monopoly. Newport News was the sole manufacturer of American carriers by the early 1960s. It was also the only shipyard equipped with nuclear weapons. The US Navy enterprise accounted for 94% of Newport News' income in 1996. During the Cold War, the firm built 10 aircraft carriers of the Nimitz class.
The Navy and Newport News Shipbuilding created a monopoly-monopsony partnership when they agreed to build a nuclear-powered aircraft carrier. This form of connection differs from the monopoly-multiple-customer market in that it incorporates buyer and seller collaboration.