General Dynamics’ NASSCO shipyard in San Diego is concluding its Expeditionary Sea Base shipbuilding program, eyeing a potential 2030 timeframe to reinvigorate the sealift fleet. The yard is the only one in the nation that builds new U.S. Navy and commercial ships, offering flexibility in seeking new work. The shipyard is set to fill its graving dock with a new ship type after completing its sixth Expeditionary Sea Base. Options include the next-generation sub tender program, commercial opportunities, or accelerating the John Lewis-class oiler program.
With General Dynamics finishing a capital improvement project in December, production at NASSCO is expected to ramp up. The shipyard aims to increase production by building an additional ship hull every year and ultimately achieve a 1-2-1-2 sawtooth pattern. NASSCO is also preparing for a potential increase in sealift ship spending around 2030, emphasizing the urgent need to renew the sealift fleet to bolster the nation’s military capabilities.
While ship construction remains steady, NASSCO is experiencing a decline in ship repair workload for the third consecutive year. The ship repair industry overall is in a down cycle, with many companies laying off employees. However, NASSCO has managed to avoid layoffs by shifting employees to the construction side. Repair costs have grown due to labor, supply, and overhead expenses, but the shipyard hopes for increased workload beginning in 2025, particularly with the Navy’s DDG Mod 2.0 upgrades.
