Leadership: Why The Navy Hates Northrop Grumman

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May 16, 2006: U.S. Navy leaders have just about had it with one of their primary shipbuilders; Northrop Grumman. The company has shipbuilding facilities on the Gulf Coast, that suffered damage from Hurricane Katrina last year. The navy already allocated $2.7 billion for Katrina related damage, but Northrop Grumman wants more, and says that if it doesn't get what it wants, some projects could be delayed up to a year. These delays would increase costs some $500 million. Northrop Grumman's three yards in the area are building a dozen warships. The navy is already mad at Northrop Grumman for inept management, poor quality control and inability to get ships completed on time and on budget. The navy had been growing dissatisfied with Northrop Grumman for years. The only things coming out of Northrop Grumman that increase are the excuses, and overcharges.

 


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