New CNO Caudle Calls for New Fleet Design in First Speech - USNI News

Admiral Daryl L. Caudle,  the 34th Chief of Naval Operations

The Foundry Admiral: Caudle's Vision for Naval Transformation

An Analysis of the 34th Chief of Naval Operations' Strategic Priorities

By Claude Anthropic

The U.S. Navy's newest leader brings a submariner's precision and an industrialist's urgency to the Pentagon's highest naval office. Admiral Daryl L. Caudle assumed duties as the 34th Chief of Naval Operations on August 25, 2025, after a turbulent six-month period that saw unprecedented leadership upheaval across the service. His appointment marks not just a change in command, but potentially a fundamental shift in how the Navy approaches its most pressing challenges: industrial capacity, technological modernization, and strategic deterrence in an era of great power competition.

A Submariner's Foundation

Caudle's nearly four-decade career in the submarine force provides unique insights into the Navy's most complex operational and industrial challenges. A 1985 graduate of North Carolina State University with a degree in chemical engineering, he holds advanced degrees in physics from the Naval Postgraduate School, engineering management from Old Dominion University, and organizational leadership from the University of Phoenix. His submarine commands included USS Jefferson City (SSN-759), USS Helena (SSN-725), and USS Topeka (SSN-754), followed by squadron and group commands that culminated in leadership of Submarine Forces Pacific and Atlantic.

This background is particularly relevant as Caudle inherits a Navy grappling with submarine construction shortfalls that threaten both force structure goals and alliance commitments. His assessment is stark: meeting AUKUS obligations to Australia and the United Kingdom will require the industrial base to achieve "a transformational improvement, not a 10 percent improvement, not a 20 percent, a 100 percent improvement" in Virginia-class submarine production.

The Foundry Concept: Industrial Base as Strategic Asset

Perhaps Caudle's most distinctive contribution to naval strategic thinking is his conceptualization of what he terms "the foundry"—the Navy's shore establishment, encompassing shipyards, training centers, weapons production lines, and logistics networks. In his assumption of command ceremony, he declared: "For too long, we've treated this interconnected network of force generation as background noise. No longer. From reducing maintenance delays to ensuring spare parts and ordnance flow on time, the foundry will become the engine of naval dominance."

This represents a fundamental reframing of how the Navy views its industrial and shore infrastructure. Rather than treating these capabilities as support functions, Caudle elevates them to the level of strategic assets—as critical to naval power as the platforms themselves. This perspective reflects hard-earned lessons from his tenure as Fleet Forces Commander, where he witnessed firsthand the cascading effects of maintenance delays, supply chain disruptions, and industrial capacity constraints on fleet readiness.

The foundry concept aligns with broader Trump administration priorities for defense industrial base revitalization, but Caudle's approach appears more systematic and operationally focused than previous reform efforts. His emphasis on accountability—"platforms delivered and repaired on time; fully manned and combat-ready ships; ordnance production meeting contracted demand; backlogs in repair parts eliminated"—suggests a performance-based approach to industrial relationships.

Continuity Amid Change: Embracing Project 33

Despite the dramatic leadership changes that preceded his appointment, Caudle has explicitly endorsed his predecessor's strategic vision. Admiral Lisa Franchetti's CNO Navigation Plan and its centerpiece, Project 33, will continue under Caudle's leadership. This represents a notable commitment to strategic continuity during a period of significant personnel turbulence.

Project 33's seven key targets focus on achieving 80 percent combat surge readiness by 2027—the year intelligence assessments suggest China might be prepared for military action against Taiwan. The initiative encompasses: improving platform readiness through enhanced maintenance; integrating unmanned systems at scale; establishing Maritime Operations Centers for command and control; achieving 100 percent manning in critical billets; eliminating sailors living aboard ships in homeport; enhancing training through live-virtual-constructive architectures; and repairing critical infrastructure in the Pacific.

Caudle's embrace of these goals, particularly the 80 percent combat surge readiness target, reflects his understanding that current force generation models are insufficient for the compressed decision timelines of modern great power competition. As he noted in Senate testimony, the Navy cannot rely on "just-in-time" certification when facing adversaries with advanced missile capabilities and limited warning indicators.

Technology Integration: The Submarine Perspective

Caudle's technological vision appears shaped by his submarine background, where integration of advanced systems has long been essential for operational success. His approach to artificial intelligence and unmanned systems reflects this systems-thinking perspective. He has articulated a three-part framework for AI integration: sensor identification and classification; enhanced data processing at scale; and generative AI for routine tasks that free human operators for higher-level functions.

On unmanned systems, Caudle advocates for "modular, scalable, and built for rapid upgrade cycles" platforms that can "stay ahead of emerging threats." His vision emphasizes practical integration rather than technological showmanship: "The right way to think about robotic autonomous systems is how we package them to solve our problems and where they are best-suited." This pragmatic approach suggests unmanned systems will be evaluated based on their contribution to operational effectiveness rather than their technological sophistication alone.

Notably, Caudle has expressed frustration with the Navy's pace of directed energy weapon deployment, stating the service should be "embarrassed" by delays in fielding high-energy lasers. This criticism reflects his broader impatience with acquisition timelines that fail to match the pace of technological change and strategic competition.

The Human Element: Sailors First

While much attention focuses on platforms and technology, Caudle's repeated emphasis on "sailors first" suggests a leader who understands that technological advantage means little without the human capital to employ it effectively. His quality of life initiatives, developed during his Fleet Forces tenure, address fundamental retention challenges through improved housing, healthcare access, and family support.

His commitment to eliminating permanent shipboard living in homeport represents more than a quality of life improvement—it acknowledges that sustainable maritime presence requires shore infrastructure that supports long-term retention. Similarly, his focus on advanced training architectures recognizes that the complexity of modern naval warfare demands continuous skill development throughout a sailor's career.

Strategic Challenges and Institutional Change

Caudle assumes the CNO position during what he has characterized as "the Navy's most important chapter in its 250-year history." The service faces simultaneous challenges of recapitalizing the strategic deterrent, modernizing conventional forces, and expanding industrial capacity—all while maintaining global presence and readiness. His assessment that these challenges require "large transformation" suggests an appetite for institutional change that transcends traditional service boundaries.

Working alongside Navy Secretary John Phelan, who has called for separating "mission from tradition," Caudle appears positioned to challenge organizational practices that impede operational effectiveness. His critique of "overlapping command and control structures" and requirements processes "undisciplined and detached from the acquisitions process" indicates potential organizational reforms ahead.

The admiral's emphasis on international partnerships in shipbuilding and maintenance reflects recognition that American industrial capacity alone may be insufficient for current strategic demands. This represents a significant shift from post-Cold War assumptions about defense industrial base adequacy and suggests potential changes in how the Navy approaches alliance relationships.

Great Power Competition and the 2027 Timeline

Caudle's strategic framework is explicitly organized around the 2027 timeline for potential Chinese military action against Taiwan. This focus creates urgency around force development decisions while acknowledging that some modernization efforts will extend well beyond this critical period. His concept of managing the "duality of urgency"—being ready to fight now while preparing for future conflicts—captures the essential tension facing defense planners.

The admiral's assessment that current Navy force structure faces "moderate" risk with "areas of higher risk for certain scenarios" suggests a leader comfortable with operational risk management. His commitment to providing "unfiltered" military advice to civilian leadership, even when it conflicts with political preferences, indicates willingness to address difficult strategic trade-offs directly.

A Study in Contrasts: Caudle versus Franchetti

The transition from Admiral Lisa Franchetti to Admiral Daryl Caudle represents more than a simple change of command—it reflects fundamentally different approaches to naval leadership shaped by distinct career paths, operational philosophies, and strategic emphases.

Background and Formation

Admiral Franchetti, a 1985 Northwestern University journalism graduate commissioned through NROTC, began her career during the era when women were first gaining access to combat roles. As a surface warfare officer, she commanded across the traditional progression from destroyer to carrier strike group, breaking barriers as the first woman in numerous leadership positions. Her path reflected the Navy's evolving integration policies, from initial logistics ship assignments to full combat command opportunities following the 1993 repeal of combat exclusion laws.

In contrast, Caudle's submarine career followed a more traditional, specialized track within the nuclear Navy. A 1985 North Carolina State chemical engineering graduate, he progressed through the submarine force's rigorous technical hierarchy, commanding multiple attack submarines and eventually all Atlantic submarine forces. His career represents deep specialization within naval warfare's most technically demanding community.

Leadership Philosophy and Style

Franchetti's leadership philosophy emphasized inclusive teams and collaborative decision-making, famously stating that effective leadership required "listening to your people, caring for your people, understanding your people". She consistently advocated that the Navy was "strongest and most effective as a force when we build strong, inclusive, connected teams". This approach reflected her surface warfare background, where success depends on integrating diverse shipboard departments and external partnerships.

Caudle's leadership style appears more direct and accountability-focused. Navy Secretary Phelan characterized him as "the honey badger" with "a reputation for challenging the status quo, demanding results and refusing to accept excuses". His criticism of industry for delays, dismissing COVID-19 and supply chain explanations at the 2023 Surface Navy Association conference, exemplifies a more confrontational approach to performance management. This reflects submarine force culture, where technical precision and accountability are paramount for survival.

Strategic Vision and Priorities

Both leaders embraced similar strategic frameworks—Franchetti created Project 33, which Caudle has committed to continue. However, their emphases differ significantly. Franchetti's Navigation Plan focused on readiness through systematic process improvement, targeting 80 percent combat surge readiness through enhanced maintenance, manning, and training programs.

Caudle's "foundry" concept represents a more fundamental reimagining of how the Navy views its industrial base. Where Franchetti emphasized optimizing existing processes, Caudle argues for treating shore infrastructure as a strategic asset requiring transformation rather than mere improvement. His declaration that "the foundry will become the engine of naval dominance" suggests a more radical departure from traditional platform-centric thinking.

Approach to Technology Integration

Franchetti's technology approach emphasized scaling existing capabilities, particularly in unmanned systems and information dominance. Her background in multiple carrier strike groups and joint staff positions informed a preference for integrated, networked solutions that enhanced traditional naval formations.

Caudle's technical vision appears more systematic, reflecting his engineering background. His three-part AI framework—sensor identification, data processing, and generative applications—demonstrates a submariner's approach to technology integration based on specific operational problems rather than broad capability enhancement.

Personnel and Cultural Issues

Perhaps the starkest difference lies in their approaches to personnel issues and cultural change. Franchetti's tenure was marked by her role as the first woman CNO and her advocacy for diversity and inclusion initiatives. Her dismissal was widely attributed to the Trump administration's opposition to DEI programs and her association with what critics termed "social justice ideologies".

Caudle's personnel philosophy focuses on "quality of service" rather than diversity advocacy, emphasizing practical improvements in housing, healthcare, and training. His "sailors first" approach appears more transactional—providing better conditions to improve retention and readiness rather than advancing broader social change.

Crisis Management and Decision-Making

Franchetti's operational experience included managing the Syrian strike in 2018, overseeing combat operations against ISIS, and navigating the COVID-19 pandemic while commanding Sixth Fleet. Her approach emphasized careful coordination with allies and stakeholders, reflecting surface warfare's emphasis on integrated operations.

Caudle's crisis management style appears more decisive, emphasizing what he calls "knife-in-the-teeth" warfighting mentality over collaborative consensus-building. His submarine background, where command decisions must be made quickly with limited external consultation, appears to inform a more centralized decision-making approach.

Industrial Base Relationship

Both leaders recognized industrial base challenges, but their proposed solutions differ markedly. Franchetti acknowledged fiscal constraints and worked within existing relationships to improve performance. Caudle has been openly critical of industry performance, rejecting excuses for delays and demanding accountability. His submarine experience with nuclear standards suggests comfort with confrontational relationships when performance is substandard.

The contrast between these leaders reflects broader tensions within contemporary naval strategy: inclusion versus traditionalism, collaborative versus directive leadership, and gradual improvement versus transformational change. Caudle's appointment suggests the Trump administration's preference for leaders who prioritize operational outcomes over institutional change, performance accountability over stakeholder management, and technical expertise over political sophistication.

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Admiral Caudle's Military Decorations

Sidebar: Four Decades of Distinguished Service

Admiral Daryl Caudle's ribbon rack tells the story of a career spanning multiple theaters of operation, joint assignments, and combat operations across four decades of naval service. His decorations reflect not only sustained excellence in performance but also the breadth of his operational experience from the undersea domain to strategic nuclear missions.

High-Level Awards:

• Defense Distinguished Service Medal - The Department of Defense's highest non-combat decoration, recognizing exceptionally distinguished performance of duty contributing to national security
• Navy Distinguished Service Medal - The Navy's highest non-combat decoration for exceptionally meritorious service in a duty of great responsibility

Joint Service Recognition:

• Defense Superior Service Medal (4 awards) - Recognizing superior meritorious service in joint duty assignments, including his roles on the Joint Staff and in combatant command positions
• Legion of Merit (4 awards) - For exceptionally meritorious conduct in the performance of outstanding services, reflecting his command and staff assignments at increasing levels of responsibility

Navy Service Awards:

• Meritorious Service Medal (3 awards) - For outstanding non-combat meritorious achievement or service
• Navy and Marine Corps Commendation Medal (5 awards) - Recognizing sustained acts of heroism or meritorious service
• Navy and Marine Corps Achievement Medal (4 awards) - For professional achievement and superior performance of duty

Operational Significance:

The multiple awards of the Defense Superior Service Medal and Legion of Merit are particularly noteworthy, reflecting Caudle's extensive joint duty experience and successful performance in positions of increasing responsibility. His collection spans assignments supporting Operation Enduring Freedom in Pakistan, Operation Inherent Resolve against ISIS, and Operation Odyssey Lightning in Libya.

The Defense Distinguished Service Medal represents the pinnacle of non-combat recognition, typically reserved for officers whose service has national-level impact. For a submariner to achieve this level of recognition suggests contributions that transcended his warfare specialty, likely related to his strategic planning roles and nuclear deterrence responsibilities.

Academic and Professional Recognition:

Beyond military decorations, Caudle received the NC State Distinguished Alumni Award from the Department of Chemical and Biomolecular Engineering in 2020, recognizing his contributions to both military service and the engineering profession. His status as a licensed professional engineer distinguishes him among flag officers and reflects the technical expertise that has characterized his approach to naval leadership.

This collection of awards spans combat operations, strategic planning, joint assignments, and technical innovation—providing a comprehensive record of excellence that qualified him for consideration as the Navy's senior uniformed leader.

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Implications for Naval Policy

Caudle's leadership style and strategic priorities suggest several likely emphases during his tenure:

Industrial Base Transformation: Expect aggressive efforts to improve shipyard productivity, expand submarine construction capacity, and enhance munitions production. The "foundry" concept will likely drive organizational changes in how the Navy manages industrial relationships and measures contractor performance.

Accelerated Technology Integration: While maintaining Project 33's timeline, Caudle will likely push for faster integration of proven technologies, particularly in unmanned systems and artificial intelligence. His systems engineering background suggests emphasis on interoperability and scalability over individual platform capabilities.

Organizational Reform: The combination of Caudle's operational experience and civilian leadership support for institutional change suggests potential restructuring of acquisition processes, command relationships, and accountability mechanisms.

Alliance Deepening: Recognition of industrial capacity limitations will likely drive expanded partnership arrangements, particularly with AUKUS allies but potentially extending to other naval powers with relevant capabilities.

Conclusion

Admiral Caudle represents a new generation of naval leadership that views industrial capacity as inseparable from operational effectiveness. His "foundry" concept acknowledges that 21st-century naval power depends as much on shore-based infrastructure as on fleet capabilities. Whether this vision can overcome decades of deferred investment and organizational inertia will largely determine the Navy's ability to meet the challenges of the next decade.

The 34th CNO inherits a service at an inflection point, where strategic competition demands rapid adaptation while fiscal and industrial constraints limit traditional solutions. His success will be measured not just in platforms delivered, but in the Navy's ability to generate sustained combat power when crisis demands it. As he noted in his Senate testimony, the ultimate test will be simple: when the President pushes the button, "80 percent of the fleet is ready to go."

The stakes could not be higher. In an era where adversaries are betting America cannot adapt fast enough to meet emerging challenges, Admiral Caudle's Navy must prove them wrong.

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34. New CNO Caudle Calls for New Fleet Design in First Speech - USNI News