Retention Strategies in Warship Construction: Insights from HII

Enhanced Workforce Initiatives

HII (Huntington Ingalls Industries) has made significant strides in maintaining its workforce amidst a competitive labor environment in the defense sector. CEO Chris Kastner reported on Thursday that the company has successfully retained more shipyard personnel by implementing wage increases and focusing on the recruitment of highly qualified candidates.

• Recruitment and Retention Successes:
  HII has onboarded over 4,600 shipbuilders since the beginning of the year, achieving improved retention rates across both of its major shipbuilding facilities. Specifically, the Newport News shipyard has benefitted from an uptick in experienced hires following recent wage adjustments made in the summer and enhanced engagement with local workforce development initiatives.

Strategic Labor Adjustments

Earlier in the year, HII shifted its hiring strategy to limit the intake of inexperienced shipbuilders. This approach aims not only to bolster the company’s skilled labor pool but also to enhance operational efficiency through experienced hands. This strategy aligns with the economic support provided by the Navy to strengthen the maritime industrial base.

• Impacts Observed at Newport News:
  According to Kastner, the effect of wage increases has positively influenced hiring and retention. This is particularly evident as the facility now recruits approximately 50% of its workforce from regional development pipelines, including apprenticeship programs.

Union Negotiations and Future Outlook

While Newport News experiences workforce stability, HII is concurrently negotiating with the union representing its Ingalls facility in Mississippi, where talks are ongoing ahead of the expiration of the current contract next year.

• Challenges in Negotiation:
  Kastner highlighted the complexities of reaching an agreement, emphasizing the need for collaboration with union representatives to finalize wage adjustments.

Significant Operational improvements

HII is projecting a notable 15% increase in overall throughput compared to fiscal year 2024. This forecast underscores the company’s ongoing commitment to workforce enhancement and strategic outsourcing.

• Positive Trends:
  The leadership at HII expresses optimism about the changes at Newport News, citing reduced turnover and an elevated level of workforce experience as key elements of future success.

In summary, HII’s focus on skilled labor retention and strategic hiring practices has positioned the company to thrive in an evolving maritime defense landscape. As the negotiations with unions progress, the ongoing enhancements to the workforce could further solidify HII’s role as a leader in warship construction.