Northrop Grumman,one of the main U.S. shipbuilders,is reflecting on its role as shipbuilder to the U.S. Navy and U.S. Coast Guard.Frankly,the contractor no longer seems to be comfortable with that role.CEO Wes Bush says that shipbuilding has little synergy with Northrop's other activities.He feels it may be time to spin the division off,while the rest of the company focuses on high tech information systems,electronic systems and aerospace systems projects.Shipbuilding may be a bit too boilerplate for Northrop at this point,especially in light of likely defense budget constraints in the offing.
In any event,Northrop is making major moves at its shipyards.It is laying off 642 workers at its Pascagoula,Mississippi shipyard by the end of the year,following a previous layoff of 400;decided to close its Avondale,Louisiana shipyard entirely in 2013;and will also shut its small shipyard in Tallulah,Louisiana down by year's end.The closures are attributed to the timing of contracts and the cyclical nature of shipbuilding.The consolidation will reduce future costs,increase efficiency and address shipbuilding overcapacity,Wes Bush stated.
The company has been promoting its unmanned systems division,as well as its participation in the Navy's CANES,or Consolidated Afloat Networks and Enterprise Services program,which involves moving critical data seamlessly over a common network system through expert integration,making the fleet more agile.
Northrop Grumman(NOC)
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