Forms of Ownership and a Cost-Effective Shipbuilding Industry.
Abstract
This study reviews and analyzes the potential impact on shipyard efficiency of the three modes of ownership possible in the United States: a fully nationalized shipbuilding industry, an industry organized as a public utility, and a privately owned and conventinally financed industry. Particular emphasis was given to analysis of the potential for creating a shipbuilding public utility since it was initially believed that the scope and content of the regulations imposed on a utility might help to induce a more cost-effective industry. This, indeed, is the main concern of this project--the least cost construction of naval combatants. Based upon their analysis, the writers believe that changing the mode of ownership of the industry or its capital structure will not, by itself, solve the underlying problem. Their analysis suggests that cost control is a management function distinct and apart from the ownership function, and should be so treated. In this regard, their analysis now suggests that either nationalizing the industry or creating a shipbuilding utility as opposed to the continuing private ownership of the industry may serve to increase shipbuilding costs both in the short- and long-term.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1978
- Accession Number
- ADA069120