Why shipyard capacity is weak deterrence

Can investment in shipyard capacity act as a deterrent?

It can matter for states lacking yards, but visible ships usually deter more effectively than latent production capacity.

Britain already possessed extensive yard capacity, so adding more would not transform the signal in the same way it might for a smaller naval power. Deterrence often confronts leaders already making risky or illogical choices; a physical fleet is harder for them to discount than a forecast of future production. Industrial strength matters, but it is not identical to deployed power.