Good morning, everyone! Thank you for joining us today here in sunny San Diego for the 34th iteration of WEST. I just completed a short trip to Everett, Washington, and it’s truly wonderful to be here with you again this year.

Thank you, Admiral Spicer, for your warm welcome today, and for your leadership of this fine institution. The theme of this year’s conference poses a question that I spend a lot of time thinking about: “Are Acquisitions and Readiness on Pace to Meet Global Security Demands?” A second question to perhaps ask might be: is industry doing everything it can to meet the challenge at the required pace?

As I said last month at SNA, we face a comprehensive maritime power that demands the same rigor in our strategic planning that leaders like Chester Nimitz, William Sims, and Ernest King applied during wargames between world wars.

Fleet Admiral Chester Nimitz once said that “hindsight is notably cleverer than foresight.” I will submit to you that history is forged in the crucible of action, not the comfort of hindsight.

And as we develop our new approach to Maritime Statecraft, it’s necessary we have leaders in the Department of the Navy and in industry who can identify, propose, act decisively on the best courses of action, and most importantly, execute effectively on behalf of our Sailors, Marines, and all Americans.

As we all know, seapower advances the security and prosperity of the nation—understanding and leveraging its political influence must shape our approach to operations every day short of war. All of us—from Seaman Recruit, Private, Ensign or Second Lieutenant to Admiral, General, Master Chief, Sergeant Major, or Secretary of the Navy—have a critical role to play in our efforts. And all of you in industry equally play an important part, as well.

The operations in the Red Sea over the past three months illustrate perfectly how investments and decisions made by naval leaders 30, 40 years ago impact operations today. The backbone of our air defense fleet, the Aegis Combat System, first became a program—then named the Advanced Surface Missile System—60 years ago this year. 51 years ago, the first model of the SPY RADAR was installed on USS Norton Sound (AVM 1).

While our Sailors have performed with exceptional professionalism, the systems of six of our coalition navies’ destroyers used to shoot down scores of anti-ship cruise missiles, ballistic missiles, and drones launched by the Houthis can be traced back to the 60s, 70s, and 80s. We can trace them to moments when visionary naval leaders such as Admiral George Anderson Jr. and then-Captain Wayne E. Meyer made increasingly consequential decisions that still impact our Navy and Marine Corps.

Today, we face decisions in shipbuilding, maintenance, repair, and the future of the fleet that will impact and shape the Navy in the 2050s and beyond.

And while Congress has so far avoided a painful and disastrous government shutdown, a full-year Continuing Resolution would be monumentally damaging to our efforts to build and maintain the fleet of today—much less the fleet of the future. If Congress does not pass a full year budget, we will face a deficit of over 40 billion dollars in sequestration cuts and misaligned funds. Without a full budget, our safety and readiness will suffer, at a time when we are ill able to afford it—lost time in readiness cannot be bought back through future funding.

The American people expect the Navy and Marine Corps to be ready to respond in defense of our national interests—and we must have the funding to rise to the significant global challenges we face.

We need the House of Representatives to now do its job so that lives are not placed at risk tomorrow in the Red Sea.

And in Europe, Russia’s illegal war of aggression continues in Ukraine. I can’t overemphasize how we all must continue to call on the House of Representatives to pass legislation in the coming days to support our Ukrainian partners in their battle against Russia. Democracy in Ukraine, Europe, and throughout the world indeed depends on this support—it is critical to do so.

And in the Indo-Pacific, the People’s Republic of China remains our pacing challenge and continues to behave provocatively.  China today seeks to exploit its growing economic and military power to coerce its neighbors and threaten their interests while undermining our alliances and security partnerships.

Earlier today, in Japan, Vice Admiral Thomas turned over command of 7th Fleet to Vice Admiral Kacher. I cannot imagine a more capable officer taking command of our forces in that critical theater as we continue to work for a free and open Indo-Pacific. In his most recent sea tour as Commander of Task Force 76, Admiral Kacher was a key architect of a remarkable prototype operation, which pioneered a new approach to support our partners’ civilian vessels in standing up to the PRC’s coercive maritime insurgency in the South China Sea. Admiral Kacher combined diverse naval and Marine Corps forces at his disposal to establish and maintain a persistent presence in determined support of a Malaysian partner facing heavy Chinese pressure to abandon its lawful exploration of its offshore resources.

And, under my leadership as your Secretary of the Navy, we are delivering the forces our operational commanders require to defend our interests around the world against the threats we face every day. As just one example, this past year, for the first time, we deployed six Littoral Combat Ships armed with Naval Strike Missiles West of the International Date Line. These vessels play an essential role in providing persistent presence and working alongside key allies such as the Philippines.

Let me underscore that Maritime Statecraft is about using naval power to deter and prevail without fighting. And I hope to soon deploy mobile launchers on the back of those LCS to be able to fire more lethal missiles, if called upon to do so.

As National Security Advisor Jake Sullivan recently described, we aim to manage our competition with the PRC while defending our national interests, standing with our allies, and upholding a free and open international order—not just for ourselves, but for all nations. 

To maintain a global, sustainable maritime posture, we must continue to innovate and invest in capabilities that keep our ships at sea, especially as their weapons magazines run low. The capability to rapidly rearm our missile shooters at sea using our time-proven—and singular—advantage in connected replenishment will revolutionize surface warfare. Rearming our missile combatants at sea will make our fleet more lethal—and more present—sending an unmistakable signal to our allies and deterring our adversaries.

Admiral Paparo and I have discussed at-length the importance and the critical advantage this tremendous game-changing opportunity will provide us—especially in the Pacific—and we are now working to pave the way for that capability to reach the fleet.

To that end, I’ve directed an at-sea demonstration no later than this summer for reloading our Vertical Launch Systems at sea using the Transportable Re-Arming Mechanism (TRAM) developed at Port Hueneme. As we move deeper into this critical decade, the near-term deterrent effect of fielding TRAM in the fleet cannot be overstated. You don’t have to look any further than the dozens of missile engagements conducted in the Red Sea by our destroyers to realize that a capability like TRAM is long overdue.

While TRAM delivers an at-sea missile reload capability for the fleet, we look forward to working with industry to improve our missile supply through efforts like the Naval Modular Missile (NMM) program.

NMM standardizes components across the family of naval missiles, streamlining production and bolstering our supply chain as our demand for weapons grows.

Fueling our fleet for sustained operations is equally crucial. We’ve recently awarded the contract for the ninth John Lewis-class oiler, and initiatives like the Modular Consol Adapter Kit (MCAK) and Modular Fuel Delivery Station (MFDS) will further boost our refueling capacity. MCAK, which is easily and rapidly installable, will allow commercial tankers to refuel our Combat Logistics Force, while MFDS will enhance tanker compatibility with our entire fleet.

These game-changing initiatives—TRAM, NMM, MCAK, and MFDS—will solidify our maritime dominance and act as a powerful deterrent to our adversaries—and will be operational within two to three years. Maybe I’ll still be Secretary of the Navy then!

Beyond immediate operational needs, we’re tackling the long-term health of American shipbuilding. This isn’t just a Navy priority; it’s a national imperative. And I am driving innovation to change our outdated shipbuilding and repair paradigm.

In November, I convened the inaugural meeting of the Government Shipbuilder’s Council.

Four different cabinet departments—Defense, Transportation, Homeland Security, and Commerce—and our five government shipbuilding partners—MARAD, Coast Guard, NOAA, and even the Army—met to discuss our common challenges in surface ship construction and share best practices. And we’re working with our international partners, too.

My team’s recent visit to BAE’s facility in the United Kingdom and my upcoming trips to Japan and South Korea underscore our commitment to learning from and collaborating with global leaders in shipbuilding.

We need greater investment in our commercial and naval shipbuilding industry if we are to build a more lethal and bigger navy—and we need to start that journey now. Last weekend, I also had the opportunity to visit Pearlson Shiplift in Miami, Florida to learn about technology with applications to improve the effectiveness and efficiency of our ship maintenance enterprise—to include potentially even include submarine production and maintenance. 

Their work in coordination with our Navy Facilities Engineering Command includes project development to address our need for expeditionary repair of both our forward deployed crewed and uncrewed systems.  Our shipbuilders are also taking note.  Fincanteri just completed installation of shiplift in Wisconsin and last week AUSTAL USA decided to invest in a shiplift system for the future of steel vessel construction programs.

We’ve also launched a first-of-its-kind White House-led initiative on shipbuilding—naval and commercial. As part of my cabinet-level awareness and advocacy campaign, I’ve met with leaders across this administration on the need to take collective action to restore our comprehensive maritime power and the long-term health of American naval shipbuilding—all as part of our national maritime statecraft.

Now, let’s focus on the role you in industry play alongside us. We in the government will not reach our goals nor will we succeed in our mission without your help. We need the brainpower and muscle of industry and academia. Your expertise, time, and resources are vital for developing the cutting-edge technologies we need.

And as a former small business owner, I know a strong business case matters to serve as the foundation for that engagement. That is why I am committed to providing you in industry clear requirements, robust pipelines for the future, and strong stable investments. However, I need you to do your part as well to provide a proper return on investment for the American taxpayer.

I need you to deliver platforms and capabilities on time and on budget without excuses.

Yes, COVID had a negative impact on the supply chain, but we need to move beyond that now.

I need industry to make the necessary investments to recruit and retain your own personnel more effectively.

Overall, many of you are making record profits—as evidenced by your quarterly financial statements—and while I am happy for you, you can't be asking for the American taxpayer to make greater public investments while you continue to goose your stock prices through stock buybacks, deferring promised capital investments, and other accounting maneuvers that—to some—seem to prioritize stock prices that drive executive compensation rather than making the needed, fundamental investments in the industrial base at a time when our nation needs us to be all ahead flank.

We need to work together, government and industry, to develop the shipbuilding industrial base.

You need to deliver ships, aircraft, and submarines on time and on budget.  And you need to innovate.

That’s why the Department of the Navy’s commitment to rapid innovation presents an unparalleled opportunity for industry partners.

Several commands, including ONR, NavalX, NIC, MIU, RCO, and DCO are all actively collaborating with industry to identify and address capability gaps.

Through initiatives like the Taxpayer Advocacy Project, I have directed our contract community and Office of General Counsel to ensure that we will leverage all legal means at our disposal to ensure that the American people are getting what they paid for.

It’s my obligation as the Secretary of the Navy to make sure they—you—get the proper return on investment. Now, in some cases, we recognize the Department of the Navy won’t completely own all of the intellectual property of dual-use technology—but we must ensure that, when contractually required, we receive delivery of the technical data we need to maintain and sustain our platforms.

And for those of you who think I will not hold firm, you obviously do not know me very well.

Now, we do remain dedicated to the protection of IP rights for our small business partners.

I also want you to know that the Department of the Navy is holding companies accountable for poor performance and misconduct—and now I’ve directed a deep dive into holding individuals accountable for chronic poor performance or misconduct as well. Not just to hold personnel responsible for their own actions, but to deter those who even consider taking similar actions.

We must endeavor to ensure that contracts with the Navy are delivered on time and on budget—the global strategic situation demands it.

I am personally committed to a fully integrated team—Sailor, Marine, civilian, contractor, and industry—working together to support our warfighters.

Fiscal Year 2023 saw record investments and contractor awards, and I’m particularly proud we added nearly 1,000 new small businesses to our Navy-industry team—a testament to our Office of Small Business Programs.

My Director of Small Business Programs, Ms. Arveice Washington, is here today, and I encourage you to reach out to her—all of us in the Department are excited to find ways to expand our partnerships with industry.

Now, the key is to help us all find and train the right people—and, as one example, NAVSEA’s Team Submarines’ Talent Pipeline Initiative has been instrumental in addressing workforce shortages. The Americans who build and maintain all of our ships are a national asset, and we must be relentless in our efforts to improve their number, capabilities, and skill.

High-paying, high-skilled, “new-collar” jobs that restore America’s manufacturing prowess are a priority of this Administration, combining traditionally blue-collar trades with cutting-edge technologies. We must reignite our manufacturing prowess, and we need 150,000 new, qualified workers to choose a career in shipbuilding over the next ten years to make it happen. Pre-apprenticeship, registered apprenticeship, and labor management programs are critical tools to help fulfill this labor demand.

And as we’re developing these skillsets throughout our shipbuilding workforce, we must continue to leverage our nation’s advantage in technology and innovation in the maritime domain.  This includes working to secure our systems and industrial base from within the cyber domain.

The shipyard I remember from my active-duty career is disappearing quickly.  Advances in modeling, virtual reality, and artificial intelligence will allow us to reduce costs, optimize systems, and improve interoperability.

As we gather here this afternoon, we have nearly 100 ships under contract and over 50 in construction, including Ford-class aircraft carriers, Constellation-class frigates, San Antonio-class LPDs, Arleigh Burke-class destroyers, Columbia-class SSBNs, and Virginia-class SSNs.

Last year, we commissioned the first Flight III destroyer, USS Jack H. Lucas, which marks an important milestone in that class’s already storied history and represents the most technologically advanced surface combatant ever built. And one year ago, we installed the first SPY-6 RADAR on an amphibious warship—the future USS Richard M. McCool Jr (LPD 29).

But that isn’t all. We also continue our initiatives to build a hybrid—manned and unmanned—fleet.

Let’s be frank: the hybrid fleet is here. It’s not a future state, a list of capabilities, or a fanciful concept drawn up by strategists. This transformation is evident in the Indo-Pacific, Middle East, Caribbean, and Latin America, where unmanned systems are seamlessly integrated into our operations.

And the future marches on. Together, Operation Windward Stack and Operation Gatekeeper—led by Fourth and Fifth Fleet, respectively—will include 16 unmanned vessels. Those vessels will provide a persistent presence in their respective AORs and deliver all-domain awareness over a total area covering tens of thousands of square miles.

This past summer, we made history by deploying four unmanned ships to Japan for the first time.

All these operations demonstrate our ability to rapidly procure, develop, and integrate off-the-shelf technologies. Our unmanned vessels free our more capable manned assets for strategic missions—and help us swiftly deploy manned platforms when necessary.

Every operation, every test, every deployment of an unmanned platform allows to validate its effectiveness against a challenge we face in the maritime domain. And best of all, they never result in liberty incidents when they pull into port!

But innovation is more than gadgets, gizmos, or whizbangs. Innovation is about culture. It’s about fostering an environment where the status quo is never sacred, every voice is heard, and every idea is explored. We need to empower our Sailors and Marines to think differently, to think strategically, to challenge the status quo, and to relentlessly ask, "Why can't we do this better?"

That’s why we established the Department’s Science and Technology Board, chaired by former Secretary of the Navy Richard Danzig. They are already tackling the tough questions—like how will emerging technologies shape the future of warfighting across all domains.

Our ongoing project on surface ship maintenance—a key priority for the CNO—is investigating key issues that impact our performance.  I eagerly await their recommendations and discovery of potential new technology investments to improve all aspects from planning, condition-based assessments, additive/advanced manufacturing, and IT modernization.

Their initiative on surface ship cyber defense is a key imperative to execute complex missions in contested environments.  We have a world class team performing this study that will impact the fleet. 

For example, we have—for the first time—integrated cybersecurity and defense requirements into the new Constellation-class frigate at the onset of the program, as a critical attribute.  The program has scheduled early integration testing events at available land-based test sites. These test events are intended to assess network cybersecurity controls and reduce shipboard integration risks for government- and contractor-furnished equipment.

More, we’re leading the effort on securing our weapons systems and critical infrastructure, led by my acting Principal Cyber Advisor, Mr. Scott St Pierre. We recently released an overall cyber strategy for the first time to enhance our posture and get after this key issue.

As we push deeper into this critical decade, we have the conn in the eye of a storm. The challenges we face are complex, demanding, and ever-evolving. Among all the challenges, one thing must remain constant: the unwavering commitment of our nation to uphold the values of freedom, security, and prosperity.

Our acquisitions and readiness are the bedrock of our national security. We’re not just building ships, we’re forging a modern, lethal fleet—agile, adaptable, and able to meet any threat on the horizon. Our logistics and shipbuilding initiatives aren’t just about jobs or creating a technological advantage, they’re about guaranteeing a maritime force that can outmaneuver any challenge.

But at the heart of our efforts are our people, because human ingenuity is the basis of our success. The unwavering courage of our Sailors and Marines, the dedication of our civilian workforce, and the strength of our partnerships—these are the true metrics of our maritime advantage.

Last month, we suspended the search for two U.S. Navy SEALS we lost at-sea—Petty Officer First Class Christopher Chambers and Petty Officer Second Class Nathan Ingram—during an interdiction of Iranian lethal aid to the Houthis.  And last week, in a training accident, we lost five Marines—Lance Corporal Donovan Davis, Sergeant Alec Langen, Captain Benjamin Moulton, Captain Jack Casey, and Captain Miguel Nava—assigned to the “Flying Tigers” of Marine Heavy Helicopter Squadron 361.

These incidents highlight the dangerous nature of our work—we must honor these patriots and their ultimate sacrifice by remembering why we all choose to serve and committing ourselves to do better.

Thank you all for your service to our Navy, our Marine Corps, and our Nation. May God continue to bless us with fair winds and following seas. Now, I'd like to hear from you. No question is off-limits.