Why shipyard concentration hurts smaller navies first

Would the U.S. Navy be better off retaining more of its own shipyards instead of relying on private builders?

The United States has enough procurement diversity to manage the risk, but smaller navies are much more exposed to concentrated shipbuilding capacity.

The United States has enough shipbuilding suppliers to absorb greater reliance on private industry under normal conditions. A smaller navy has fewer yards, programmes, and alternative sources with which to correct a failed contract or replace lost capacity. Industrial concentration therefore becomes a force-structure vulnerability earlier for small fleets than for a continental-scale service.