U.S. Navy Invests Nearly $1 Billion To Automate Submarine Production Amid Workforce Shortages
The United States Navy is investing close to $1 billion to improve how its submarines are built, as delays and worker shortages continue to slow down production.
The effort focuses on using automated factories, artificial intelligence, and supply chain support to increase output of Virginia-class and Columbia-class submarines, which are critical to the country’s naval strength.
The Navy is putting about $900 million into automated manufacturing facilities that can produce submarine parts faster and with fewer workers.
A new plant called Factory 4 opened in Cherokee, Alabama, on March 20, 2026. It was built by Hadrian, a company that focuses on advanced manufacturing.
The factory will make parts and systems for both Columbia-class and Virginia-class submarines.
Officials said the factory is designed to handle the full process, starting from raw materials and ending with finished components ready for testing. Instead of relying on many different suppliers, the system is built to carry out multiple steps in one place.
The facility uses AI-driven machines and can run continuously. The company also said workers can be trained in about 30 days, which is much faster than traditional shipyard training that can take years.
The Navy plans to build two more such facilities. These factories are part of a plan where different parts of submarine construction are handled in different locations.
This approach is called distributed shipbuilding. By moving component production away from shipyards, the Navy expects shipbuilders to focus more on final assembly, which could reduce delays.
Alongside new factories, the Navy is also using software to improve planning and coordination. A system called Ship OS was introduced to bring AI tools into shipbuilding operations. It is supported by platforms from Palantir.
Early use has already reduced submarine schedule planning time from around 160 hours to less than 10 minutes in some cases.
At another yard, material review time has dropped from weeks to under an hour. The system will be expanded across two major shipbuilders, three public shipyards, and about 100 suppliers.
The Navy is facing a shortage of skilled workers across shipyards and supplier companies. Analysts have said thousands of additional workers are needed to meet production targets.
Many experienced workers have retired, and fewer people are entering the field. Building submarines requires highly skilled work, especially for nuclear systems, where quality standards are very strict. In some cases, it can take years to train workers such as welders.
Automation is being used to reduce the pressure caused by these shortages. Machines can produce parts more consistently and require fewer operators.
Once a process is set up, it can be repeated across different machines and locations. This helps maintain quality while increasing production speed.
At the same time, the Navy is working to fix deeper issues in its supply chain. In September 2024, the Naval Sea Systems Command awarded a contract worth $950,744,520 to BlueForge Alliance.
The contract is structured as cost-plus-fixed-fee, meaning the government takes on most of the cost risk while allowing flexibility to move quickly. This type of contract is often used when speed is more important than fixing a final price.
BlueForge Alliance is not building submarines. Instead, it is focusing on the network of suppliers that provide materials and components.
Many delays in submarine construction have been linked to shortages at these lower levels, including issues with castings, forgings, electronics, and specialized steel.
Under the contract, BlueForge will identify where production capacity is limited and help suppliers expand. This could involve arranging funding, supporting workforce training, or helping smaller companies meet Navy requirements.
The aim is to strengthen the overall industrial base so that shipyards receive parts on time.
The Navy has struggled for years to meet its goal of building two Virginia-class submarines each year.
At the same time, the Columbia-class program is under pressure because it is meant to replace the older Ohio-class submarines that carry nuclear weapons. Both programs depend on many of the same suppliers and workers, which has made delays worse.
The submarine industrial base became smaller after the Cold War, when demand dropped. Since then, many suppliers have reduced capacity, and rebuilding it takes time.
Training skilled workers can take years, and setting up new facilities or qualifying suppliers cannot be done quickly.
Factory 4 and similar projects help increase production capacity. These automated plants are built in lower-cost areas and can produce large volumes of parts while easily switching between different components.
However, new factories do not start full production immediately. It can take 18 to 24 months to reach full output, as systems need to be tested and approved. All parts must meet strict safety standards before they can be used in submarines.
References: AOL, Morning Overview
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