Why Has The Cost Of Navy Ships Risen?
Why Has the Cost of Navy Ships Risen?
Introduction
Over the past four decades the cost of navy ships has exceed the rate of inflation. Although navy increases the budget from $10 billion to $12 billion, they will achieve a fleet of 260 ships by the year 2035 rather than the 290 it now has. In this document the reason and the sources of the increase are investigated. The problem is also considered from the industryfs point of view. Some options for the Navy to reduce ship costs are found.
In this document cost increase of four types of ships- nuclear attack submarines, guided missile destroyers, amphibious ships and nuclear aircraft carriers is noted. Generally we consider these four ships as a whole.
Cost escalation of naval ships
Ship class Cost in 1967 million $ Cost in 2005 million $ Cost Increase
%
Nuclear Attack Submarines $484 $2,427 401
Guided Missile Destroyers $515 $1,148 123
Amphibious Ships $229 $1,125 391
Nuclear Aircraft Carriers......
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Approximate Word Count: 1023
Approximate Pages: 5 (250 words per double-spaced page)
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