US shipbuilding efforts are moving ahead rapidly with a $3.7 billion investment aimed at creating one of the most advanced naval yards in the West, while Britain’s naval shipbuilding sector continues to face challenges related to scale, investment, and industrial modernisation.
At the former Sparrows Point facility in Baltimore, Maryland—historic for its role in producing Liberty ships during World War II—the site is being redeveloped and rebranded as Arsenal-2. The project is supported by the US government and incorporates involvement from Anduril, a defence technology company noted for its use of innovative, cost-effective manufacturing processes. Anduril, co-founded by Republican donor Palmer Luckey, is applying a “software-defined” manufacturing approach as part of efforts to accelerate production of key components for Virginia-class attack submarines.
US political discourse has focused in part on the Trump family’s ties to Anduril, with Donald Trump Jr. being a partner in a firm that holds a stake in the company. Beyond political connections, however, Arsenal-2 exemplifies Washington’s strategy to overcome bottlenecks in naval shipbuilding through large-scale investment and advanced manufacturing.
In contrast, Britain’s naval shipbuilding industry, though busier than it has been since the Cold War, is criticised for lagging behind in modernisation and scale. The UK is engaged in multiple high-value programmes, including development of Type 26 and Type 31 frigates, the Dreadnought and Aukus nuclear submarine classes, and fleet solid support ships intended for the Royal Navy’s aircraft carriers. Recent Labour Party announcements have included plans for three new floating dry docks at HM Naval Base Clyde, Scotland, backed by contracts estimated at £6 billion.
Despite these programmes, experts highlight that the Ministry of Defence’s typically small ship order volumes limit opportunities to achieve economies of scale necessary for extensive automation and factory modernisation. Steve Prest, a fellow at the Royal United Services Institute, emphasises that smaller production runs reduce contractors’ incentives to invest in advanced manufacturing technology, which relies on larger, predictable order pipelines.
This concern echoes earlier recommendations from Sir John Parker’s 2016 review, which called for clearer government commitment and steady funding to provide shipbuilders with long-term confidence. However, subsequent UK governments have frequently altered shipbuilding plans—examples include the halving of the Type 45 destroyer programme and reductions to the Type 26 frigate order—causing instability in the pipeline and contributing to skills loss, especially in nuclear submarine engineering.
The Ministry of Defence points to significant recent investments, such as the £360 million robotic steel-cutting and welding line at BAE Systems’ Glasgow shipyard for the Type 26 programme and £200 million worth of advanced manufacturing facilities by Babcock at Rosyth for the Type 31 programme. Additionally, Navantia UK in Belfast has invested £157 million in robotics and manufacturing upgrades.
Still, industry sources caution that these investments are primarily concentrated at major prime contractors, with smaller yards that supply them seeing uneven modernisation. Workforce shortages pose an additional challenge, with skilled labour scarcity potentially constraining even technologically advanced projects.
An MoD spokesperson stated that UK shipbuilding is at its strongest point in decades, supported by more than £26 billion in investment aimed at upgrading naval bases and shipyards, enhancing productivity, and developing skills, underlining the government’s commitment to securing the sector’s future.