Rebuilding the Fleet

We did something different this week.No guests and no scripts… Just me and Tim sitting down to take stock of what we’ve learned across Season 1 about what is happening in American shipbuilding right now.When we started this podcast six months ago, I don’t think either of us fully appreciated the moment we were entering. As Tim put it: “My entire shipbuilding career, nobody even knew what shipbuilding was.” Now it’s on the front page. Congress is debating the SHIPS Act. The Secretary of the Navy is making YouTube videos explaining acquisition decisions. It’s not a moment too soon.As we reflected on our first season, what surprised us most was the passion around these topics. When we invited founders, industry veterans, and association leaders onto the show, we expected expertise. They had that, for sure. But we also got fire. These people have been ignored for decades, working on something that suddenly matters to everyone, and they are ecstatic to be talking about it.The big themes from Season 1:* Geopolitics is driving this reboot. Anxiety over the Indo-Pacific is reshaping every acquisition decision, every war game, every conversation we have with Navy customers. Ukraine’s Black Sea campaign added urgency: if a small country can pin down Russia’s fleet with unmanned systems, what does distributed maritime power actually look like?* Policy is moving… slowly. The SHIPS Act didn’t make it into this year’s NDAA. The reconciliation bill added MIB money. The Navy reorganized acquisition around PAEs. Things are happening, but the pace still falls a bit short of the threat.* The Navy is getting better at storytelling! Secretary Phelan’s videos explaining the frigate cancellation and NSC pivot were the first time I’ve seen Navy leadership proactively justify acquisition decisions to the public. Whether or not you agree with their reasoning, they laid it out for us, which was different.* American capacity is genuinely fragile. Matt Paxson from the Shipbuilders Council drove this point home. Without the Jones Act and similar policies, some of our yards would already be gone. We’ve seen acquisitions save yards that were about to fail. The ecosystem is brittle. * International allies matter. Tim spent a week in Korea visiting shipyards. A “tiny” yard in Busan would rank top-five in the United States by capacity. That’s the scale gap. And it’s not just Korea… here at home, Hanwha, Fincantieri, Austal, and Damen are all playing roles in American sea power.What we’re watching in 2026:Acquisition announcements (big consolidation moves are coming). The frigate program’s next chapter. Will California Forever break ground? How will the Golden Fleet translates into contracts? And we hope (finally) to get some Navy officials on the show to talk about it all in Season 2.Thank you for listening to Season 1. We built this because we believe American sea power matters, and because this industry deserved a platform. Turns out a lot of you agree.Stay tuned for Season 2!Catch up on Season 1 here: https://austinegray.substack.comFollow Austin: https://www.linkedin.com/in/austinelliottgray/Follow Tim: https://www.linkedin.com/in/tglinatsisFollow Blue Water Autonomy: https://www.blw.ai/ This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit austinegray.substack.com

About the CompanyCalifornia Forever is an ambitious venture founded nearly 10 years ago to build a new city in Solano County, California just east of San Francisco. The company has quietly assembled almost 70,000 acres (100+ square miles) through 700 separate land transactions over 8 years, and has raised over $1 billion in funding. The project consists of three main pillars: the Solano Foundry (America’s largest proposed advanced manufacturing park), the Solano Shipyard (~7,500 acres of maritime industrial space), and Solano Living (a walkable downtown and neighborhoods with 175,000 homes for approximately 400,000 residents).About our GuestJan Sramek is the founder and CEO of California Forever. Originally from the Czech Republic, Jan grew up in a blue-collar manufacturing community where his uncles were CNC machinists and his father was a car mechanic. After stints in finance and technology in the UK and Switzerland, he moved to California in 2013 with a vision of a state that could build anything. Disillusioned by the regulatory obstacles preventing construction, he spent a year researching solutions before concluding that California needed an entirely new city. In 2016, he bet his personal fortune on the vision, borrowing what he describes as “an irresponsible amount of money,” and has since built California Forever into one of the most ambitious development projects in American history.Key Topics of Conversation* Why America needs new shipyards, not just new ships* The challenge of site selection* The Korean shipyard model* California’s regulatory environment and how California Forever is navigating permitting* The workforce advantage: 750,000 skilled workers within 50 miles and the recruiting advantage of short commutes* The “inland bay” construction approach: excavating in the dry at 1/20th the cost* Why all seven cities in Solano County have passed resolutions supporting shipbuildingLearn more: https://californiaforever.com/About Rebuilding the Fleet: https://www.linkedin.com/company/rebuilding-the-fleetFollow Jan: https://www.linkedin.com/in/jansramek/Follow Austin: https://www.linkedin.com/in/austinelliottgray/Follow Tim: https://www.linkedin.com/in/tglinatsis/Subscribe to Rebuilding the Fleet:* YouTube: https://www.youtube.com/@RebuildingTheFleet This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit austinegray.substack.com

About the CompanyHanwha Defense USA is the American arm of South Korea’s Hanwha Group, one of the world’s largest defense and industrial conglomerates. In the U.S., Hanwha operates the Philly Shipyard—the only major commercial shipyard on the East Coast—alongside munitions production facilities and a growing portfolio spanning solar power, optics, and advanced manufacturing. The company has pledged $5 billion in foreign direct investment to expand American shipbuilding capacity, with plans to transform Philly Shipyard from producing 1-2 ships annually to 20 ships per year within a decade.About the GuestMike Smith is the COO of Hanwha Defense USA. A former Navy nuclear Surface Warfare Officer (SWO) who served aboard the USS Valley Forge (CG-50), Mike brings over 24 years of defense industry experience spanning United Defense, BAE Systems, Huntington Ingalls Industries (where he served as Chief Strategy Officer), and Lockheed Martin. His career has touched energetics, artillery, precision-guided munitions, shipbuilding, ship design, and weapon systems.Key Topics of Conversation* Hanwha’s $5 billion investment in U.S. shipbuilding and munitions capacity* From 800 to 2,200 employees at Philly Shipyard … in one year* Industrial automation, cobots, and the future of shipyard safety* Korean shipbuilding culture* Building submarines* The supply chain challenge and why Congressional “regular order” matters* The Vessel Construction Manager (VCM) model* Balancing commercial and naval work* Golden Fleet, MUSVs, and the case for smaller distributed platforms* Hanwha’s three commitmentsKey LinksAbout Hanwha Defense USA: https://hanwhadefenseusa.com/About Rebuilding the Fleet: https://www.linkedin.com/company/rebuilding-the-fleetFollow Mike: https://www.linkedin.com/in/mikesmithstratgen/Follow Austin: https://www.linkedin.com/in/austinelliottgray/Follow Tim: https://www.linkedin.com/in/tglinatsis/Subscribe to Rebuilding the Fleet:* YouTube: https://www.youtube.com/@RebuildingTheFleet This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit austinegray.substack.com

About HeatherHeather Carroll is the Chief Revenue Officer at Path Robotics. Before joining Path, she spent 20+ years in AI, automation, and robotics for supply chain and logistics (warehouses). She was recruited to Path to help scale the business and saw an immediate connection: her husband owns a manufacturing facility in Nashville that struggled with the exact welding challenges Path solves.About the CompanyPath Robotics is building physical AI for manufacturing, starting with welding. Founded by brothers Andy Lonsberry (CEO, PhD in humanoid robotics) and Alex Lonsberry (CTO, PhD in computational neural networks), Path was born from the brothers’ experience growing up in Ohio manufacturing. Andy learned to weld at age 8 in his dad’s garage fab shop. The company has raised $300M through its Series D and employs nearly 200 people in Columbus, Ohio.Path has ~100 robots deployed in the field and has collected 10+ million inches of weld data which underpins the foundation of their proprietary AI model, Obsidian. Unlike traditional pre-programmed welding robots that fail in high-mix, low-volume environments, Path’s AI uses vision sensors to scan parts, adapt to real-world variation (fit-up gaps, distortion, misalignment), and create fill plans in real-time. The system learns via reinforcement learning from every weld, and can now simulate millions of inches of practice per hour.Path operates on a Robots-as-a-Service (RaaS) model, guaranteeing production rates and staying embedded with customers to continuously improve performance. Core markets include energy/infrastructure (utility poles, grid components), AI infrastructure (data centers, backup power), and defense—with shipyard partnerships to be announced in early 2025.Key Topics of Conversation* Origin Story: Two brothers with PhDs in AI who grew up welding in Ohio, dreaming of an American manufacturing revival* Why Traditional Welding Robots Fail: Pre-programmed systems can’t handle high-mix, low-volume or imperfect parts, resulting in “robots collecting dust in corners”* The AI Difference: Vision sensors + real-time adaptation + reinforcement learning from 10M+ inches of weld data* America’s Welder Crisis: 22% of welders are 55+, another 22% are 45-55; we’re heading for a cliff in 10 years* Customer Vignette: “$65 million in orders I can’t fill because I can’t find the welders”* Obsidian Foundation Model: Path’s proprietary weld intelligence trained on real-world data, not physics simulators* Robots-as-a-Service Model: Why continuous improvement beats one-time CapEx, “like your iPhone camera updating twice a year”* Shipbuilding Entry: Natural fit for heavy multi-pass welds* NAVSEA & WPS Compliance: Robot captures every millisecond of weld parameters* What’s Next: Epsilon model for dexterous manipulation and fit-up; working toward mobile/humanoid embodiments* Congressional Testimony: Reshoring manufacturing, incentive alignment for RaaS models, federal vs. state AI regulation, permitting bottlenecks* Data Centers Competing for Welders: $1.2T infrastructure bill + $1T+ private data center investment = same labor pool as shipbuilding* Lightning Round: Cobots are overhyped; shipyard announcements coming; study weldingKey LinksFollow Heather: https://www.linkedin.com/in/heatherhcarroll/Follow Austin: https://www.linkedin.com/in/austinelliottgray/Follow Tim: https://www.linkedin.com/in/tglinatsis/Subscribe to Rebuilding the Fleet:* YouTube: https://www.youtube.com/@RebuildingTheFleet This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit austinegray.substack.com

About the GuestCaptain (ret.) Colin Corridan, USN (Ret.) served 26 years in the United States Navy as a surface warfare officer. A Massachusetts native and graduate of Massachusetts Maritime Academy, Colin commanded both variants of the Littoral Combat Ship (LCS)—one of only a few officers to do so. He served as Deputy Commander of Task Force 59 in Bahrain, where he led groundbreaking efforts integrating commercial unmanned systems with fleet operations. Colin finished his naval career as the acting director at the Disruptive Capabilities Office (DCO), working to rapidly deliver innovative solutions to warfighters. He recently transitioned to industry and now serves as Head of Government and Defense at Bedrock Ocean Exploration.About the CompanyBedrock Ocean Exploration is building next-generation autonomous underwater vehicles (AUVs) for seabed surveying and subsea data collection. Unlike companies that retrofit existing platforms, Bedrock builds its vehicles from the ground up. Currently operating at depths of 300 meters, Bedrock serves commercial energy customers while maintaining the agility to pivot to defense applications.Key Topics of Conversation* LCS Program: Why both variants are effective, the ship as an unmanned “mothership,” and why bad press misses the point* Task Force 59: Standing up a commercial unmanned systems task force, the “tuna fishing fleet” analogy, and model for rapid acquisition* Disruptive Capabilities Office (DCO): Solving real fleet problems fast, classified industry days, and the transition to the new Rapid Capabilities Office (RCO)* Maritime Domain Awareness: Using commercial space assets to track “dark targets” and share intel with allies* Fighting from the MOC: The Maritime Operations Center, expeditionary warfare, and keeping the OODA loop tight* Lessons from Ukraine & the Houthis: Pace of warfare evolution, FPV drones, and why every warfare area needs to move faster* Industry-Warfighter Partnership: “Tell us what you need”—the trifecta of industry, academia, and the warfighter* Bedrock Ocean Exploration: Colin’s transition to industry, undersea surveying, and the importance of building platforms from the ground up* Advice for the Next Generation: Why it’s become “cooler” to support defenseKey LinksFollow Colin: https://www.linkedin.com/in/ccorridan/Follow Austin: https://www.linkedin.com/in/austinelliottgray/Follow Tim: https://www.linkedin.com/in/tglinatsis/Subscribe to Rebuilding the Fleet:* YouTube: https://www.youtube.com/@RebuildingTheFleet This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit austinegray.substack.com

About the Shipbuilders Council of AmericaThe Shipbuilders Council of America (SCA) represents 45 shipyard companies operating approximately 90 facilities nationwide, serving as the voice of America’s commercial shipbuilding industry. Founded to advocate for U.S. shipbuilding capabilities, SCA members span from commercial shipyards to major players in government shipbuilding (excluding nuclear-focused yards). The organization champions policies like the Jones Act and the SHIPS Act, working to revitalize American maritime manufacturing and ensure the United States maintains a robust shipbuilding industrial base essential for both national security and economic competitiveness.About Matt PaxtonMatt serves as President of the Shipbuilders Council of America, bringing extensive experience from Capitol Hill to the maritime industry. He previously worked for Senator Ted Stevens of Alaska, serving as senior counsel on the Senate Commerce Committee where he worked on Coast Guard bills, maritime administration legislation, and Jones Act policy. His background includes work on defense appropriations and shipbuilding programs, giving him unique insight into both the policy and practical sides of American maritime power. This marks his first podcast appearance, representing a critical voice for the American shipbuilding industrial base during a pivotal moment for U.S. maritime policy.Key Topics of Conversation* The historical context of American shipbuilding - from the 1970 Merchant Marine Act to being the world’s second-largest ship producer* Current U.S. shipbuilding capacity: 750+ ships delivered annually across military, commercial, and government sectors* The strategic importance of the Jones Act and why outsourcing shipbuilding to allies is problematic* COVID-19’s supply chain lessons and the risks of relying on foreign shipping carriers* The SHIPS Act: bipartisan congressional support for American maritime revitalization* Presidential Executive Order on revitalizing the maritime industry and the upcoming maritime action plan* The future of autonomous ships and their integration into America’s fleet structure* Career opportunities in shipbuilding: from craftsman to family-wage employment across the nation* Why America needs both advanced military vessels AND commercial shipbuilding capacity* The difference between building the world’s most advanced Navy and having broad maritime industrial capacityKey LinksFollow Matt: https://www.linkedin.com/in/matthew-paxton-9608a4ba/Follow Austin: https://www.linkedin.com/in/austinelliottgray/Follow Tim: https://www.linkedin.com/in/tglinatsis/Subscribe to Rebuilding the Fleet! This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit austinegray.substack.com

About the GuestRick Spaulding brings nearly 40 years of experience in the American shipbuilding industry, having worked on some of the Navy’s most complex and critical platforms. Throughout his distinguished career, he has been directly involved in the design and construction of aircraft carriers, submarines, amphibious assault ships (LPDs, LHAs), destroyers (DDG-51s), and Coast Guard cutters. Beyond his hands-on shipbuilding experience, Rick has served in key leadership roles within the industry, including as President of the Society of Naval Architects and Marine Engineers (SNAME) and in various positions with the National Shipbuilding Research Program (NSRP). His unique perspective combines both operational shipyard experience and high-level strategic thinking about the future of American maritime power.About the OrganizationRather than a single company, this episode focuses on the broader American shipbuilding industry, exploring the challenges and opportunities facing the sector that builds America’s naval fleet. Rick’s experience spans multiple major shipyards and encompasses both military and commercial shipbuilding programs. The discussion addresses the industry’s evolution from simpler mechanical ships to today’s highly complex, electronics-heavy platforms, and the implications for production speed, cost, and capability.Key Topics of Conversation* The Complexity Crisis in Modern Shipbuilding: Rick explains how today’s warships have exponentially more complexity than ships built even two decades ago, with miles of additional cabling, sophisticated electronics, and integrated systems that require early installation and testing. This complexity has fundamentally changed how ships must be built and tested.* The Planning vs. Speed Dilemma: We dive deep into the tension between the military’s need for speed in ship production and the industry’s requirement for solid, executable plans. Rick argues that true speed comes from proper planning and preparation, not from cutting corners or starting construction before designs are complete.* Evolution of Ship Technology and Construction: Rick lays out how shipbuilding has transformed over his 40-year career, from largely mechanical systems operated manually to highly integrated, computer-controlled platforms that require entirely different construction and testing approaches.* Industry Leadership and Vision: We examine parallels to World War II production under leaders like William Knudsen, and Rick emphasizes the need for clear vision, adequate funding, sustained demand, and strong leadership to unlock the industry’s potential.* Future Workforce and Technology: We explore the coming revolutions in autonomy, robotics, and electronics as key growth drivers of the sector. Rick shares his views on what skills and education paths will be most valuable for the next generation entering the field.* Generative AI: Overhyped or Transformative? Rick’s candid assessment of current AI trends in the industry, expressing skepticism about over-reliance on generative AI tools while acknowledging their appropriate applications.Follow Rick: https://www.linkedin.com/in/rick-spaulding-192226203/Follow Austin: https://www.linkedin.com/in/austinelliottgray/Follow Tim: https://www.linkedin.com/in/tglinatsis/* YouTube: https://www.youtube.com/@RebuildingTheFleet This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit austinegray.substack.com

BackgroundThis week, we’re coming to you from Bristol, Rhode Island where Austin and Tim are visiting the production facility of Vatn Systems. Vatn, led by CEO and co-founder Nelson Mills, is scaling the manufacturing of autonomous underwater vehicles (UUVs) to support America’s undersea warfare capabilities. From being homeschool on a boat in the Caribbean to building 2,000 UUVs per year, Nelson dishes hard-hitting insights on maritime technology, defense manufacturing, and the critical supply chain challenges facing the American industrial base.About the CompanyVatn Systems is building low-cost autonomous underwater vehicles at scale to maintain America’s underwater superiority. Based in Bristol, Rhode Island, the company recently hit 50 employees and operates a production facility capable of manufacturing up to 2,000 units per year. The company focuses on building the platform (the “truck” or “iPhone”), leaving it to customers to determine the payload and application needs. They have a suite of platform-agnostic launch capabilities from torpedo tubes, USVs, UAVs, and aircraft.Key Products:* S6: 6-inch diameter, man-portable UUV with patented modularity system for kinetic payloads, sensor payloads, and decoy applications* S12: 12.75-inch diameter vehicle (same size as Mark 54 torpedo) that can launch from traditional torpedo tubesCompany Philosophy: Building the platform (the “truck” or “iPhone”) while customers determine payload and application needs. Platform-agnostic launch capabilities from torpedo tubes, USVs, UAVs, and aircraft.Fun Fact: The company’s name, “Vatn” is Old Norse/Icelandic for “water”.About the GuestNelson Mills is the CEO and co-founder of Vatn Systems, bringing a unique combination of academic, technical, and maritime backgrounds to undersea defense technology.Learn more about Vatn: https://hii.com/Follow Nelson: https://www.linkedin.com/in/millsn/Follow Austin: https://www.linkedin.com/in/austinelliottgray/Follow Tim: https://www.linkedin.com/in/tglinatsis/Subscribe to Rebuilding the Fleet: https://www.youtube.com/@RebuildingTheFleet This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit austinegray.substack.com

About the CompanyHuntington Ingalls Industries (HII) stands as America’s largest military shipbuilder, operating three major divisions that form the backbone of U.S. naval power. Newport News Shipbuilding handles all aircraft carrier construction and refueling operations, while partnering with General Dynamics Electric Boat on submarine programs. The Ingalls division in Mississippi serves as the nation’s largest provider of surface combatants, including destroyers and amphibious vessels. Meanwhile, their Mission Technologies division, based in McLean, Virginia, has emerged as the world’s largest producer of unmanned undersea vehicles (UUVs), having delivered over 750 systems globally through their Lionfish program and Remus family of vehicles.About the GuestEric Chewning brings a unique blend of private sector expertise and defense policy experience to his leadership role at HII. His background spans investment banking, management consulting at McKinsey & Company, and critical Pentagon positions focused on industrial base policy and serving as an advisor to the Secretary of Defense. From workforce development to technological innovation and international partnerships, Eric is driving the conversation around the future of American shipbuilding.Key Topics of Conversation* Workforce Innovation and Outsourcing Strategy: HII’s ambitious plan to scale outsourced work from 2 million to 3 million hours annually, and rebuilding of the sub-tier industrial base across America* Unmanned Systems Leadership: HII’s position as the world’s largest UUV producer, the evolution of the Lionfish program and autonomous launch and recovery capabilities for the Remus vehicle family* Industrial Base and International Partnerships: Analysis of the Korea-Hyundai partnership and how to balance domestic production with international cooperation* Technology Integration Challenges: assessing the state of AI implementation in legacy manufacturing environments and change management challenges in traditional shipbuilding operations* Workforce Development Excellence: HII’s Apprentice School programs and strategies for attracting talent from other industries to maritime* Defense Policy and Budget Outlook: FY26 defense program priorities, evolution of Navy unmanned surface vessel (USV) strategy, and long-term implications for naval force structure and capabilitiesLearn more about HII: https://hii.com/Follow Eric: https://www.linkedin.com/in/eric-chewning-0500733/Follow Austin: https://www.linkedin.com/in/austinelliottgray/Follow Tim: https://www.linkedin.com/in/tglinatsis/Subscribe to Rebuilding the Fleet:* Apple: https://podcasts.apple.com/us/podcast/rebuilding-the-fleet/id1852025705* Spotify: https://open.spotify.com/show/4y9QghHY1jGi2XhdiVmWlj* YouTube: https://www.youtube.com/@RebuildingTheFleet This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit austinegray.substack.com

About the CompanyRegent is revolutionizing transportation with electric sea gliders - flying boats that operate in ground effect over water. The company serves dual markets: defense and commercial. On the defense side, they’re developing high-speed maritime solutions for Indo-Pacific operations with 180 mph speeds and 1,600-mile range using hybrid propulsion. Commercially, they’ve secured $10 billion in backlog from airlines and ferry companies for all-electric vehicles that travel just under 200 miles at twice the speed and half the cost of existing transportation modes.About the GuestBilly Thalheimer is the co-founder and CEO of Regent. He holds both undergraduate and graduate degrees from MIT in aerospace engineering (Course 16), specializing in aircraft design and aerodynamics. Before founding Regent, Billy worked at prominent aerospace companies including Blue Origin, Virgin Galactic, and Aurora Flight Sciences (later acquired by Boeing), where he helped develop some of the early eVTOL technology. He went through Y Combinator’s Winter 2021 cohort and co-founded Regent with Mike Klinker, who handles flight controls and software.Key Topics of Conversation* Origin Story: How MIT aerospace engineers pivoted from traditional aviation to sea gliders* Technology Deep Dive: Electric propulsion advantages, ground effect physics, and hybrid systems* Market Economics: Why short-haul aviation maintenance costs drove their business model* Defense Applications: Maritime dominance in the Indo-Pacific, casualty evacuation (CASEVAC)* Commercial Traction: $10 billion backlog and partnerships with airlines/ferry operators* Regulatory Strategy: Navigating maritime vs aviation certification pathways* Competition Analysis: Differentiation from eVTOLs and traditional marine vessels* Funding & Growth: Scaling hardware development with strategic capital sources* Industry Criticism: Bold takes on DARPA effectiveness and government R&D priorities* Founder Advice: Building hardware companies and navigating aerospace/maritime sectorsLearn more about Regent: https://www.regentcraft.com/Follow Billy: https://www.linkedin.com/in/williamthalheimer/Follow Austin: https://www.linkedin.com/in/austinelliottgray/Follow Tim: https://www.linkedin.com/in/tglinatsis/Subscribe to Rebuilding the Fleet:* Apple: https://podcasts.apple.com/us/podcast/rebuilding-the-fleet/id1852025705* Spotify: https://open.spotify.com/show/4y9QghHY1jGi2XhdiVmWlj* YouTube: https://www.youtube.com/@RebuildingTheFleet This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit austinegray.substack.com