Arleigh Burke-Class Construction

Given the news that the Navy has elected to award an additional FY23 option to Ingalls Shipbuilding, there are now 10 new Arleigh Burke guided-missile destroyers under contract.  These sips are part of a five-year ship building deal awarded on August 1st with the latest option being announced on the 11th which brought the total from 9 to 10 ships.  The ships covered by the recent news are DDG-140 through DDG -149 with seven of the total to be built by Bath Iron Works and the other three to be built by Ingalls Shipbuilding.

While the recent news is positive for the outlook of those shipbuilders, those hulls will likely not begin construction for a few years and largely won’t be completed until next decade. In the meantime, the shipbuilders will be plenty busy with 14 previously awarded ships in process or starting construction before these newly awarded ships begin.

Tamarack Defense breaks down the shipbuilding market to the individual ship to forecast the production market each year throughout the course of construction with current growth estimates at over 6% CAGR for the class through 2030.