A submarine manufacturing backlog of approximately two years is currently being experienced by the US Navy. The manufacturing of US Virginia-class submarines has been subjected to the delays and Australia’s first SSNs are not expected to be delivered until the early 2030s, when the RAN is set to acquire three of the US’ Virginia-class submarines. The specific SSN-AUKUS model’s manufacturing is dependent on the US nuclear power submarine program and US shipyard availability. Can the RAN afford to wait?
The current Virginia-class manufacturing delays are due to a combination of manpower, supply chain and budget restraints. Therefore, now could be the optimal time to adopt a more integrative approach to manufacturing.
What could this approach look like and is it at all possible within the US legislative framework, however?
The US ITAR (International Traffic in Arms Regulations) legislation is the main existing hurdle to the integrated manufacturing processes and systems being put in place. The ITAR regulations control and limit the movement, sale and manufacturing of all defence and space-related items and services. These regulations have been put in place for many reasons, including the protection of IP, the accounting of equipment and safety.
However, in the context of manufacturing and technical expertise, the controls currently limit Australian input into the US’ manufacturing processes, regardless of the trilateral agreement. ITAR also directly hinders Pillar II of the AUKUS agreement from proceeding, as Pillar II pertains to the sharing of information and technology (Pillar I relates to the acquisition and manufacturing of conventionally armed SSNs for the RAN).
The US Defense Production Act (DPA) was introduced in 1950, in the aftermath of WWII, during which the US had drastically increased manufacturing and exports. The introduction of the DPA granted the President of the United States the executive power to speed up the manufacturing of defence items ordered by the federal government from private companies by directing companies to prioritise federal government orders. The Act allows the US to respond quickly to global challenges and changes, and it was even used during the pandemic to speed up the manufacturing and distribution of medical equipment.
As the US nuclear power submarine program is currently behind schedule, the DPA could be used in the context of AUKUS to prioritise the completion of the US’ Virginia-class fleet over and above other business and procurement initiatives.
Potential benefits include the ease of extension of current joint programs - as US, UK and Australian armed forces are already undergoing joint operations exercises in the Northern Territory and the Pacific, it would only be a natural progression from a logistics perspective for existing joint operations ventures to be extended to defence manufacturing.
Regarding Australian Industry Capability (AIC), joint manufacturing arrangements would also significantly boost AIC, allowing for manufacturing to be brought onshore again, providing more jobs and increasing local industry as well as sovereign capability.
The energy sector could also be a potential benefit. As energy is in a transitional period, training in nuclear technology will be advantageous should Australia wish to acquire and integrate nuclear energy into its renewable energy sector at a later date.
Allowing Australia to assist with the reduction of US defence manufacturing delays may also realise cost, resource, time and energy savings for each AUKUS country.
A more streamlined, inclusive, trilateral security clearance procedure would no doubt need to be introduced as part of AUKUS in order to facilitate the above and if amendments were to be made to ITAR, Australian technicians could potentially fill US manufacturing workforce shortage gaps.
With regard to logistics, it would seem practical for Australian experts and technicians to be allowed to assist the US Navy in meeting its deadlines, thereby reducing the chances of the RAN’s SSN fleet’s arrival being extended - understanding that the Collins-class fleet has a limited lifespan.
Just as the DPA was used during the pandemic to facilitate the high demand for medical equipment and vaccines, similarly, it is possible the Act would increase the speed of manufacturing US Virginia-class submarines.
Looking ahead, the above has the potential to place Australia in a better position to manufacture future SSN fleets, simply as a result of acquiring additional knowledge and expertise via integrated initiatives.