Peace dividends can make later procurement more expensive

Hermes's long path to service reflected extensive testing and a government determined to reduce naval spending after the First World War. Similar cuts often follow major conflicts under the promise of a peace dividend. Reducing industrial depth appears economical while demand is low, yet it removes the steady throughput that spreads costs across many orders. When a navy later needs capacity again, each transaction can become more expensive because the supporting workforce and production base have contracted.