Warships and other military systems have to work in environments far harsher than those assumed for ordinary civilian products. That requirement raises engineering and testing costs before weapons or combat survivability are even considered. Small production runs then spread development and industrial overhead across too few units, pushing the price of each ship higher. Democratic governments must balance those costs against popular domestic spending, so forces are often expanded only when the danger becomes politically immediate.
Notable Point · 1:34:21-1:35:28
Why military ships cost more than civilian equipment
A discussion of democratic defence spending explains the price premium created by hostile operating environments, small production runs and electoral tradeoffs.