Rising programme costs can lead governments to reduce orders, which then raises the cost assigned to each remaining unit. A worked Type 45 example separates about £400 million to construct a destroyer from development costs included in the description of a billion-pound ship. Starting with £6 billion for six ships, another six at £400 million each would produce twelve ships for £8.4 billion, or about £700 million apiece. Those figures illustrate how a larger class spreads the same research investment across more hulls. The F-35 faces the same proposed cycle when customers reduce planned purchases because the unit price has risen. Repeated demands for additional capability also increase the burden on the aircraft programme.
Notable Point · 3:56:08-3:58:33
How smaller orders turn development costs into expensive units
F-35 and Type 45 cost arguments illustrate how shrinking a planned buy spreads fixed development spending across fewer aircraft or ships.