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United States Navy Nuclear-Powered Submarines and Aircraft Carriers: Resurgent Markets, New Technologies and Monopsony Competitors: 2019-2024 Analysis and Forecasts

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  • 210 Pages
  • May 2019
  • Region: United States
  • Amadee & Company, Inc
  • ID: 4770592

After Years of Under-Investment, the U.S. Navy is Focusing on Rebuilding their Aging Fleet and Procuring Ships Including Submarines and Aircraft Carriers

Alfred T. Mahan, the famous naval strategist and author of The Influence of Sea Power Upon History, argued that national prosperity and power depended on control of the world's sea-lanes.: "Whoever rules the waves rules the world.“

Today, and for the last 78 years, the United States has ruled the waves and thereby ruled the world. And a major reason for its dominance, is the U.S. Navy’s fleet of nuclear-powered submarines and aircraft carriers.

Since 9/11, U.S. military operations have been focused on the Middle East. However, resurging threats from peer and near-peer countries like Russia and China, as well as missile threats from Iran and North Korea, are shifting U.S. priorities towards higher-end capabilities.

After years of under-investment, the U.S. Navy is focusing on rebuilding their aging fleet and procuring ships including submarines and aircraft carriers. The U.S. Navy currently has 283 deployable ships compared to a 355-ship goal.

After numerous up and down cycles, the U.S. Navy today is resurgent, thanks to the Trump Administration’s large increases in defense spending. In fact, the U.S. Navy is in the early stages of the strongest procurement cycle since the Reagan administration.

This report provides an in-depth look at how the nuclear-powered submarines and aircraft carriers markets will be impacted by the double-digit growth in U.S. Navy spending on these vessels over the next five to 30 years.

For background, there is a discussion of U.S. strategic nuclear forces and naval nuclear propulsion. A review of the operations, capabilities and strategy of the modern U.S Navy is given, followed by an analysis of the markets for nuclear-powered submarines and aircraft carriers. A more detailed analysis of nuclear-powered submarines and aircraft carriers technologies is provided. Finally, profiles of General Dynamics, Huntington Ingalls and BWX Technologies are given. These companies will be the primary beneficiaries of the U.S. Navy’s 30-year shipbuilding plan, especially for submarines and aircraft carriers. For readers not familiar with nuclear power and how nuclear reactors work, an appendix explains these technologies.

The report includes 34 tables and 57 figures.

Table of Contents

  • Strategic Triad
  • Force Structure and Size During Cold War
  • Force Structure and Size After the Cold War
  • Current and Future Force Structure and Size
  • Submarine Launched Ballistic Missiles
  • Modernization Plans and Programs
  • Ohio Replacement Program
  • Navy Force Posture
  • Current Force Structure
  • Definition
  • Applications
  • Development History
  • Naval vs. Land Power Plants
  • Nuclear-Propulsion Advantages
  • Naval Power Plants
  • Naval Special Requirements
  • Reactor Compartment
  • Radiation
  • Nuclear Fuel
  • Decommissioning and Defueling
  • U.S. Naval Reactors
  • Naval Reactors Contractors
  • Reactor Designations
  • Aircraft Carrier Reactors
  • A4W Reactor
  • A1B Reactor
  • Submarine Reactors
  • S6G Reactor
  • S6W Reactor
  • S8G Reactor
  • S9G Reactor
  • S1B Reactor
  • Naval Reactors Budget
  • FY2020 Budget
  • Future Priorities
  • Naval Reactors Operations and Infrastructure
  • Naval Reactors Development
  • Advanced Test Reactor
  • Cobalt-60
  • S8G Prototype Refueling
  • Columbia-Class Reactor Systems Development
  • BWX Technologies
  • Key Facts
  • Navy Role in U.S. Defense Strategy
  • Aircraft Carrier as a National Force
  • High Seas
  • Carrier Strike Group
  • Expeditionary Strike Group
  • Carrier Strike Group vs. Expeditionary Strike Group
  • CSG as an Independent Combat System
  • ESG Projects Land-Based Power
  • Naval Vessels’ Role in U.S. Strategy
  • 1960’s to 1980’s
  • 1990’s
  • 2000’s
  • Finite Lives
  • Multiyear Procurement
  • Smaller Operating Groups
  • Reduced Manning
  • Outsourcing
  • 355-Ship Goal
  • Submarines: Largest Part Navy Spending
  • Next Tranche of Virginia-Class Submarines
  • 12 Carriers Goal
  • Nuclear-Powered Submarines and Aircraft Carriers
  • U.S. Navy Largest in World
  • Major U.S. Navy Ship Types
  • U.S. Navy Coding System
  • U.S. Naval Shipyards
  • Rebuilding Aging Fleet
  • Evolution to 355-Ship Force
  • Shipbuilding Plan
  • Aggressive Growth Scenario
  • Efficient and Agile Industrial Base
  • Individual Ship Procurement by Class
  • Aircraft Carriers
  • Strategic Ballistic Missile Submarines
  • Attack Submarines
  • Digital Shipbuilding
  • Shipbuilding 4.0
  • Digital Twin
  • Model-Based Enterprise
  • Modular Construction Programs
  • Submarines
  • 1-­3-­8
  • Next Steps
  • 30-Year Overview
  • FYDP
  • Shipbuilding Plan
  • Long-Range Naval Vessel Inventory
  • Aggressive Growth Opportunity
  • Defense Industrial Base
  • Commercial Industrial Base
  • Annual Funding for Ship Construction
  • Navy Shipbuilding Market Value
  • Nuclear Propulsion Equipment Market
  • Sustainment Costs
  • Business Model as a Monopsony
  • U.S. Navy Nuclear Submarines Types
  • SSNs
  • Designations
  • Missions
  • Ohio-Class SSBNs
  • Submarine Construction Industrial Base
  • Columbia-Class Program
  • Program Name
  • Columbia Class Technology Efforts
  • Planned Procurement Quantity
  • Planned Procurement Schedule
  • Key Columbia-Class Design Features
  • Operation and Support Cost
  • Submarine Unified Build Strategy
  • Milestone B Approval
  • Columbia-Class Program Funding
  • GAO Review
  • Columbia Class Critical Technologies
  • Columbia Design and Construction Approach
  • Aggressive Build Schedule
  • Use of Advance Construction
  • Critical Technologies Challenges
  • Integrated Power System
  • Common Missile Compartment
  • Integrated Power System and Nuclear Reactor
  • Labor Hours
  • Cost Uncertainties
  • Schedule and Technical Risks
  • Nuclear Reactor Plant
  • Impact on Other Navy Shipbuilding Programs
  • Block Buy and Multiyear Procurement Contracting
  • U.S. Attack Submarine Force Level Goals
  • Los Angeles- and Seawolf-Class Boats
  • Virginia-Class Program
  • Three Boats Requested
  • Block V Boats
  • Joint Production Arrangement
  • Schedule and Cost Performance
  • Virginia Payload Module
  • Virginia-Class Costs
  • Acoustic and Other Improvements
  • Projected SSN Force Levels
  • Industrial-Base Challenges
  • Stealth Issues
  • SQUIDs
  • Background
  • Current Navy Aircraft Carrier Force
  • Not Less Than 11 Carriers
  • Nine Carrier Air Wings
  • 12 Carriers Goal
  • Dates for Achieving 12-Carrier Force
  • Aircraft Carrier Industrial Base
  • Gerald R. Ford Class Program
  • CVN-78 (Gerald R. Ford)
  • CVN-79 (John F. Kennedy)
  • Block Buy Contract
  • CVN-80 (Enterprise)
  • CVN-81 (Not Yet Named)
  • CVN-79, CVN-80, CVN-81 Costs
  • Smaller Aircraft Carriers
  • Nuclear Powerplant Problems
  • Transformers
  • Shock Testing
  • BWX Technologies, Inc. (Overview, Financials, Nuclear Operations Group, Nuclear Power Group, Medical Isotopes Business, BWXT Nuclear Energy Canada, Competition, Joint Ventures, Customers, Submarines and Aircraft Carriers, Nuclear Cores Revenue, New Contracts)
  • General Dynamics Corporation (Overview, Marine Systems, Electric Boat, Virginia-Class Submarines, Industrial Base, Columbia-Class Submarines, CapEx, MRO)
  • Huntington Ingalls Industries, Inc. (Overview, Segments, Ingalls, Newport News, Aircraft Carriers, RCOH, Decommissioning, Nuclear-Powered Submarines, Virginia-Class Submarines, Columbia-Class Submarines, Fleet Support Services, Technical Solutions, Nuclear and Environmental Services, Employees, Customers, Two Aircraft Carriers at Once, Margins, Shipbuilding Modernization, Modular Building, Digital Shipbuilding, 3-D Mapping, Reality Capture and Laser Scanning, Visual Build Management, Augmented Reality)
  • Definition
  • Principles of Operation
  • Chain Reaction and Criticality
  • Reactor Control
  • Fissile and Fertile Materials
  • Heat Removal
  • Shielding
  • Critical Concentration and Size
  • Thermal, Intermediate and Fast Reactors
  • Reactor Design and Components
  • Core
  • Fuel Types
  • Coolants and Moderators
  • Reflectors
  • Reactor Control Elements
  • Structural Components
  • Coolant System
  • Containment System
  • Types of Reactors
  • Power Reactors
  • Light-Water Reactors
  • PWRs and BWRs
  • Advantages and Disadvantages
  • Fueling and Refueling LWRs
  • CANDU Reactors
  • Advanced Gas-Cooled Reactor
  • Other Power Reactors
  • Research Reactors
  • Production Reactors
  • Space Reactors
  • Ship-Propulsion Reactors
List of Tables
1.) U.S. Strategic Nuclear Forces Under START I and II by System and Number
2.) U.S. Strategic Nuclear Forces Under New START by System and Number
3.) Naval Reactors Funding by Activity (Thousand Dollars): 2019-2024
4.) Naval Reactors Funding by Activity (Thousand Dollars) and Share (%): 2019
5.) Active U.S. Navy Submarines by Class: 2019
6.) U.S. Navy Active, In Commission and Under Construction Attack Submarines
7.) Active U.S. Navy Aircraft Carriers by Class: 2019
8.) U.S. Navy Active, In Commission and Under Construction Aircraft Carriers: 2019
9.) U.S., China, Russia, India, France, UK, Italy, Germany, Brazil Naval Vessels by Type (Number): 2019
10.) Major U.S. Navy Ship Types
11.) U.S. Navy Ship Types: Designations and Definitions
12.) U.S. Naval Ship Construction: Defense Primes Shipyards
13.) U.S. Navy Vessels by Type/Class: 2014 FSA vs. 2016 FSA
14.) U.S. Naval Ship Construction by Type, Value ($ Million), Quantity (Number): 2019-2023
15.) Navy the Nation Needs by Ship Type (Number): 2019
16.) U.S. Navy FYDP Funding for Ship Building and Conversion by Type: 2020-2024
17.) U.S. Navy Long-Range Procurement Profile by Type of Ship (Number): 2020-2049
18.) U.S. Navy Battle Force Delivery Plan by Type of Ship (Number): 2020-2049
19.) U.S. Navy Battle Force Retirement Plan by Type of Ship (Number): 2020-2049
20.) U.S. Navy Battle Force Inventory by Type of Ship (Number): 2020-2049
21.) U.S. Navy Shipbuilding by Type of Ship ($ Million) and Growth Rate (%): 2017-2020
22.) U.S. Navy Virginia-Class Submarine Ship Cost Analysis: Propulsion
23.) U.S. Navy Nuclear Submarines and Aircraft Carriers Propulsion Equipment Market ($Million): 2017-2020
24.) Columbia-Class Program Funding by Element (Millions Dollars): FY19-FY23
25.) Columbia Class Critical Technologies as Identified by GAO in 2017
26.) Columbia-Class Program Funding (Million Dollars): FY19-FY23
27.) BWX Technologies Segments Overview
28.) BWX Technologies Income Statement by Segment: 2016-2018
29.) BWX Technologies Income Statement: 2017-2021
30.) BWXT NSG Contract Wins: 2017-2018
31.) General Dynamics Income Statement: 2017-2021
32.) General Dynamics Marine Systems Revenue by Segment: 2016-2018
33.) Huntington Ingalls Income Statement: 2017-2021
34.) Huntington Ingalls Income Statement by Segment: 2016-2018
List of Figures
1.) U.S. Strategic Weapons by Type (Launchers/Warheads) and Number 1960-1990
2.) U.S. Strategic Weapons by Type (Launchers & Warheads) and Number: 1991-2017
3.) Pressurized Water Reactor Nuclear Propulsion System Schematic
4.) Typical Submarine Reactor Compartment Location
5.) Naval Reactor Vessel Neutron and Fission Products from Uranium Fission
6.) Key ATR Parameters Compared with Those of a Commercial Pressurized Water Reactor
7.) U.S. Navy Fleet by Type (Number): 2018
8.) U.S. Navy Ship Battle Forces by Type of Vessel (Number): 2018
9.) Global Map of Exclusive Economic Zones and High Seas Oceanic Areas
10.) USS Stennis Strike Group 3
11.) U.S. Navy Carrier Strike Group by Components
12.) Expeditionary Strike Group
13.) Amphibious Ready Group
14.) U.S. Navy Ships Procured (Number): Force Structure, Current Plan, Aggressive Growth Plan: 1955-2048
15.) Naval Inventory (Number) by Type of Vessel Based on Steady, Sustainable Growth Procurement Plan: 2019-2048
16.) Aircraft Carrier: Nimitz-Class CVN-68
17.) U.S. Navy Aircraft Carrier Production by Class (Number); 1955-2048
18.) Ohio-Class Ballistic Missile Submarine USS Michigan (SSBN 727)
19.) U.S. Navy Ballistic Missile Submarines by Class (Number); 1955-2048
20.) Los Angeles-Class Attack Submarine USS Asheville (SSN-758)
21.) U.S. Navy Attack Submarines by Class (Number); 1955-2048
22.) Digital Thread: Information Connected Digital Enterprise
23.) Matrixed Approach to Model-Based Implementation
24.) Model Base Enterprise, Engineering & Design Processes
25.) Model-Based Organizational Structures
26.) Aircraft Carrier GERALD R. FORD: The Big Picture (10+ Year Build Cycle, with a 50 Year Life)
27.) Newport News Shipbuilding Integrated Design/Build Culture
28.) Maximization of Modular Construction Benefit via 3D Product Model
29.) Virginia-Class Submarine Modular Construction
30.) John F. Kennedy-Class Aircraft Carrier (CVN79) Modular Construction
31.) U.S. Navy PB2020 vs. PB2019 Comparison (Number): 2020-2049
32.) U.S. Navy Procurement Profile by Class of Ship and Prime Contractor (Number): 2020-2049
33.) U.S. Navy New Construction Industrial Base Reductions: 1955-2017
34.) U.S. Navy Ship Procurement Industrial Base Boom and Bust Cycles: 1955-2017
35.) U.S. Navy Annual Funding for Ship Construction by Type: FY2020-2049
36.) Ohio (SSBN-726)-Class SSBN
37.) Responsible Parties and Key Components of Columbia-Class Submarine Program
38.) Columbia-Class (SSBN-826) Critical Technologies
39.) Design and Construction Phases for the Columbia-Class Submarine Program
40.) Super Modules and Their Respective Functions for the Columbia-Class Submarine Program
41.) Start of Component and Equipment Advance Construction for Each Super Module for the Columbia Class Submarine
42.) Comparison of Nuclear Mechanical Drive with Nuclear Electric Drive
43.) Virginia-Class Attack Submarine
44.) USS Gerald R. Ford (CVN-78)
45.) Huntington Ingalls Aircraft Carrier Program Overview
46.) CVN-78 Gerald R. Ford Class Aircraft Carriers
47.) Virginia-Class Submarine Program Overview
48.) Columbia-Class Submarine Program Overview
49.) Fleet Support Programs
50.) Huntington Ingalls Customers: 2018
51.) Huntington Ingalls Participation (%) by Program: 2018
52.) Sequence of Events in the Fission of a Uranium Nucleus by a Neutron
53.) Chain Reaction in a Nuclear Reactor at a Critical State
54.) Principal Parts of a Nuclear Reactor
55.) Nuclear Reactor Core
56.) Cross-Section Pressurized-Water Reactor
57.) Cross-Section Boiling Water Reactor

Companies Mentioned

  • BWX Technologies, Inc.
  • General Dynamics Corporation
  • Huntington Ingalls Industries, Inc.