U.S. Shipyard Investment Reflects Military Needs

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

Industrial Info Resources is tracking $9 billion worth of active and planned shipyard projects across the U.S., most of which would support the military. This includes a planned $5 billion expansion of Hanwha's shipyard in Philadelphia.

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Military Needs in Full Force

Industrial Info Resources data show most of the $9 billion worth of active and planned shipyard projects across the U.S. would support the military. This includes a planned $5 billion expansion of Hanwha's shipyard in Philadelphia, Pennsylvania, known as Hanwha Philly Shipyard.

About one-quarter of the investment is attributed to projects under construction.

In May, the U.S. Department of Defense released its U.S. Navy Shipbuilding Plan, which comes after decades of underinvestment in domestic shipbuilding. "Expanding domestic shipbuilding capacity is a whole of government undertaking that requires stable demand signals, targeted capital investments, supplier resilience, and expanded skilled workforce development."

The plan also notes foreign shipbuilding investment could be necessary. The Navy "will evaluate overseas options and whether allied and partner shipbuilding can supplement domestic production if U.S. industry cannot meet required timelines."

U.S. Shipbuilding Projects

The highest-valued, planned shipbuilding facility project in the U.S. is the $5 billion expansion of Hanwha Philly Shipyard in Philadelphia. The Trump administration recently awarded the shipyard a $2 billion contract to build two new Missile Range Instrumentation Vessels (MRIVs). The two ships will monitor and collect data on ballistic missile tests and replace two aging vessels. The first is expected to be delivered in June 2030.

South Korea-based Hanwha, which purchased the shipyard in late 2024, has said the $5 billion expansion is aimed at increasing the shipyard's annual production from less than two vessels to up to 20. This requires expanding assembly areas where ship blocks are built, docks where hulls are constructed and outfitting berths where final systems are installed. In addition to supporting military applications, it will support new liquefied natural gas carriers and medium-range oil and chemical tankers.

IIR is tracking the expansion with a medium probability (70%-80%) of kicking off in December and wrapping up in late 2028. The Industrial Info Resources Global Market Intelligence (GMI) Industrial Manufacturing Project Database offers key information in detailed project reports.

Another project is underway: Saronic Technologies' $300 million expansion of the Franklin Shipyard in Louisiana. The project will add 300,000 square feet to the company's shipyard, which includes the construction of three new slips, a larger warehouse and a new production line to support larger autonomous surface vessels (ASVs). ASVs are marine drones that operate without a crew onboard, able to be controlled either remotely or autonomously. Construction kicked off in late 2025 and is expected to wrap up next year. Readers can view a detailed project report.

Meanwhile, Huntington Ingalls Industries is planning a $200 million+ addition of a production line at its shipbuilding facility in Pascagoula, Mississippi, to manufacture up to two warships annually for the U.S. Navy. Construction could begin next year. View the project report here.

There's also a need for ship repair and maintenance. U.S. military ships enter dry docks, which take vessels entirely off the water, for such efforts.

The largest shipbuilding facility project under construction in IIR's database is a $1.5 billion+ reconfiguration and expansion of Dry Dock No. 1 at the Portsmouth Naval Shipyard in Kittery, Maine. The reconfiguration includes multiple components, including a new concrete wall separating the north and west sections of the dry dock, a pump station building and much more. The expansion will enhance the shipyard's ability to handle multiple Los Angeles-class and the newest Virginia-class nuclear submarines. The dock's expansion is expected to be completed in 2028. Readers can view the project report.

The GMI Project Database offers a full list of shipbuilding projects across the U.S.

Key Takeaways

• $9 billion: Total investment value of active and planned shipyard projects across the U.S., most of which will support the military.
• This includes a planned $5 billion expansion of Hanwha Philly Shipyard, which recently received a contract to build two new U.S. Navy vessels.
• Project activity also is attributed to ship repair and maintenance.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).