Navy Shipbuilding: Background and Issues

On 30 November 2001, Northrop Grumman Corporation (NOC) assumed control of Newport News Shipbuilding (NNS), bringing to an apparent conclusion a five-year building process of consolidation in the ownership of the six private-sector shipyards that build the Navy's major ships. Following NOC's acquisition of the NNS, the six yards are now owned by two firms-NOC, which owns three of the yards, and General Dynamics Corporation (GD), which owns the other three. The consolidation of these shipyards under two parent firms raises several issues, including potential saving results from consolidation, the potential impact on competition in Navy shipbuilding, the potential impact of shipyard employment levels, and the potential impact of the shipyards and shipbuilding of the political process.