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Differences Between Military and Commercial Shipbuilding CHILD POLICY This PDF document was made available CIVIL JUSTICE from www.rand.org as a public service of EDUCATION the RAND Corporation. ENERGY AND ENVIRONMENT HEALTH AND HEALTH CARE Jump down to document6 INTERNATIONAL AFFAIRS NATIONAL SECURITY The RAND Corporation is a nonprofit POPULATION AND AGING research organization providing PUBLIC SAFETY SCIENCE AND TECHNOLOGY objective analysis and effective SUBSTANCE ABUSE solutions that address the challenges TERRORISM AND facing the public and private sectors HOMELAND SECURITY TRANSPORTATION AND around the world. INFRASTRUCTURE Support RAND Purchase this document Browse Books & Publications Make a charitable contribution For More Information Visit RAND at www.rand.org Explore RAND Europe View document details Limited Electronic Distribution Rights This document and trademark(s) contained herein are protected by law as indicated in a notice appearing later in this work. This electronic representation of RAND intellectual property is provided for non- commercial use only. Permission is required from RAND to reproduce, or reuse in another form, any of our research documents. This product is part of the RAND Corporation monograph series. RAND monographs present major research findings that address the challenges facing the public and private sectors. All RAND mono- graphs undergo rigorous peer review to ensure high standards for research quality and objectivity. Differences Between Military and Commercial Shipbuilding Implications for the United Kingdom’s Ministry of Defence John Birkler • Denis Rushworth • James Chiesa Hans Pung • Mark V. Arena • John F. Schank Prepared for the United Kingdom’s Ministry of Defence Approved for public release; distribution unlimited The research described in this report was sponsored by the United King- dom's Ministry of Defence. The research was conducted jointly in RAND Europe and the RAND National Security Research Division. Library of Congress Cataloging-in-Publication Data Differences between military and commercial shipbuilding : implications for the United Kingdom’s Ministry of Defence / John Birkler. p. cm. “MG-236.” Includes bibliographical references. ISBN 0-8330-3670-X (pbk.) 1. Shipbuilding industry—Great Britain. 2. Warships—Great Britain—Design and construction. 3. Great Britain. Ministry of Defence—Procurement. 4. Great Britain. Royal Navy—Procurement. I. Birkler, J. L., 1944– VM299.7.G7D54 2004 338.4'762382'00941—dc22 2004019124 The RAND Corporation is a nonprofit research organization providing objective analysis and effective solutions that address the challenges facing the public and private sectors around the world. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. R® is a registered trademark. Cover design by Stephen Bloodsworth © Copyright 2005 RAND Corporation All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from RAND. Published 2005 by the RAND Corporation 1776 Main Street, P.O. Box 2138, Santa Monica, CA 90407-2138 1200 South Hayes Street, Arlington, VA 22202-5050 201 North Craig Street, Suite 202, Pittsburgh, PA 15213-1516 RAND URL: http://www.rand.org/ To order RAND documents or to obtain additional information, contact Distribution Services: Telephone: (310) 451-7002; Fax: (310) 451-6915; Email: [email protected] Preface The United Kingdom’s shipbuilding industry has become progres- sively more reliant on the Ministry of Defence (MOD) and its Defence Procurement Agency (DPA) as customers. UK shipbuilders have largely exited the international market for commercial ships, and foreign military sales have been meagre. The MOD would prefer a more robust industry with a broader clientele, which would help sus- tain British shipbuilding skills over periods of low MOD demand. With that motivation, Sir Robert Walmsley, then Chief of Defence Procurement and Chief Executive, DPA, asked the RAND Corporation to assess the prospects for the UK shipbuilding indus- try’s diversifying its customer base, through either re-entering the commercial market or increasing its share of the military ship export market. In this document, we provide such a review, informed by the historical context of shipbuilding in the United Kingdom and poten- tial competitor nations and by the differences between military and commercial shipbuilding. This monograph is one of a set of three addressing related issues in UK shipbuilding. Funded by the DPA, the three studies have the common goal of contributing to understanding better the warship- building industry within the United Kingdom and to improving management processes therein. The other two monographs answer the following specific questions: • How could greater use of advanced outfitting and of out- sourcing reduce shipyard workload in the Future Aircraft iii iv Differences Between Military and Commercial Shipbuilding Carrier programme and thus increase the likelihood of on- schedule completion of that and other DPA programmes? (MG-198-MOD) • What metrics would keep DPA informed of progress towards completion of ship construction projects, and why do DPA- funded programmes tend to lag commercial projects in on-time completion rates? (MG-235-MOD) This report should be of special interest not only to the DPA but also to service and defence agency managers and policymakers involved in shipbuilding on both sides of the Atlantic. It should also be of interest to shipbuilding industrial executives in the United Kingdom. This research was sponsored by the MOD and conducted within RAND Europe and the International Security and Defense Policy Center of the RAND National Security Research Division, which conducts research for the US Department of Defense, allied foreign governments, the intelligence community, and foundations. For more information on RAND Europe, contact the president, Martin van der Mandele. He can be reached by email at mandele@ rand.org; by phone at +31 71 524 5151; or by mail at RAND Europe, Netonweg 1, 2333 CP Leiden, The Netherlands. For more information on the International Security and Defense Policy Center, contact the director, Jim Dobbins. He can be reached by email at [email protected]; by phone at (310) 393-0411, extension 5134; or by mail at RAND Corporation, 1200 South Hayes Street, Arlington, VA 22202-5050 USA. More information about RAND is available at www.rand.org. Contents Preface...............................................................................................................................................iii Figures ..............................................................................................................................................ix Tables................................................................................................................................................xi Summary...................................................................................................................................... xiii Acknowledgements ..................................................................................................................xix Abbreviations ..............................................................................................................................xxi CHAPTER ONE Introduction...................................................................................................................................1 CHAPTER TWO Military and Commercial Shipbuilding Trends ........................................................7 World.................................................................................................................................................7 United Kingdom....................................................................................................................... 12 Other Countries ........................................................................................................................ 17 Germany.................................................................................................................................. 18 France ....................................................................................................................................... 20 The Netherlands.................................................................................................................. 22 United States......................................................................................................................... 23 Conclusions ................................................................................................................................. 26 CHAPTER THREE How Military and Commercial Shipbuilding Differ ........................................... 27 Ship Size and Complexity..................................................................................................... 28 Contracting.................................................................................................................................. 33 v vi Differences Between Military and Commercial Shipbuilding Design............................................................................................................................................. 35 Production.................................................................................................................................... 39 Security....................................................................................................................................
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