Palmers built much of a warship but bought its guns and turbines from other manufacturers. Those suppliers could change their prices, limiting the yard's control over the cost of a contract. More vertically integrated firms could manage those costs within their own businesses. This dependence complicated Palmers' bids even when the yard could carry out the rest of the construction.
Notable Point · 3:05:45-3:06:28
Why Palmers had less control over shipbuilding costs
Buying guns and turbines from other manufacturers exposed Palmers to supplier prices that vertically integrated rivals could control internally.