Industry Insights for October
Navy Shipyard Modernization Could Top $200 Billion and Take 50 Years
October 5, 2026 – The Government Accountability Office (GAO) has released a report estimating that modernizing the U.S. Navy’s four public shipyards will cost over $200 billion USD and take 50 years to complete.
The estimate is a revision of an original projection of $21 billion and 20 years for the Navy’s Shipyard Infrastructure Optimization Program when it was launched in 2018. The initial projection was a rough estimate that omitted several important factors, including the logistical challenge of upgrading shipyards that will remain in operation and already behind schedule in delivering new attack submarines.
The GAO also made several recommendations, including annual reporting and better documentation, to ensure that both the Navy and the government can adjust, prioritize, and properly maintain the program over the extended time frame.
A South Korean Company Could Buy One of the US Navy’s Biggest Shipbuilders
August 14, 2026 – Hanwha Group, a South Korean company involved in U.S. Navy shipbuilding since 2024, has made a $1.2B offer to buy Austal USA’s domestic shipbuilding operations. Australian-owned Austal builds Navy and Coast Guard ships and is one of the biggest shipbuilders in the United States.
Hanwha Group previously purchased Philly Shipyard and is the first Korean company to perform maintenance, repair, and overhaul work on Navy vessels. They are also leading the Navy’s Next Generation Logistics Ship program. If approved, the purchase would give the company a much larger share of U.S. shipbuilding.
Tunnel Boring Begins on Hudson Tunnel Project
September 30, 2026 – Tunnel boring has started on the Hudson Tunnel Project, a massive infrastructure project that will add a new tunnel with two new rail lines between New York and New Jersey.
This will be the first new rail tunnel built under the Hudson River in 115 years, with the hope that the new infrastructure will last for an equally long period. The project is slated to be completed by 2035.
US, China and Russia Race to Build Nuclear Reactors on the Moon
The United States, China and Russia are engaging in a new “space race” to develop nuclear reactors to power proposed permanent lunar bases. NASA has tasked contractors with developing a new type of reactor that could survive transport to the Moon and operate with minimal maintenance, while Russia and China are working together on a similar lunar reactor project called Selena.
There are significant logistical, operational, and political hurdles for all three nations to overcome to develop the new reactor technology, transport it safely to the Moon, and then install and maintain it. Nevertheless, both projects have targeted completion dates in the 2030s.