Reshoring Shipbuilding

Building ships is important to national security yet too costly

The United States produced a total of 124,000 ships of all types during World War II. These production figures underscore the massive industrial mobilization that characterized World War II.

In 2024, U.S. shipyards constructed only 5 commercial ships, based on data from the Congressional Research Service and industry reports. Add to this, one Virginia-class submarine, one Arleigh Burke-class destroyer, and possibly one amphibious ship (LPD-32) suggest 2-3 naval vessels were launched in 2024.

Photo by Refat Ul Islam on Unsplash

A report report authored by National Defense Magazine put the U.S. shipbuilding issue into perspective.

Subway was advertising $18 per hour plus benefits, and the adjacent shipyards were offering $21 per hour for entry-level positions, Labs said during a recent forum hosted by the U.S. Naval Institute.

For an 18- to 20-year-old coming out of a trade school or a two-year community college program who’s “not necessarily thinking about a long-term career … that can look pretty compelling to work in the more comfortable environment” inside the restaurant versus working out in the hot and cold of a shipyard, he said.

The Navy is facing a shipbuilding crisis, with many of its programs significantly behind schedule. To fix these issues, industry is calling for the enactment of a previously rejected workforce innovation policy that many believe is worth a second look, and the new Trump administration may provide an opportunity to get that done.

While there are several contributors to the shipbuilding challenge, “it’s about the workforce — that’s all it’s about,” Charles Krugh, president of General Dynamics Bath Iron Works, said of the nation’s manufacturing workforce during a panel at the Surface Navy Association’s annual symposium in January. “Our workforce is not where we need them to be.”

Currently, the attrition rate for “your average worker” in a shipyard is 20 to 22 percent, and “in some of the critical trades it’s as high as 30 percent or more,” Labs said. “There is no way to improve the condition of the shipbuilding industrial base with attrition rates that high.”

[the rest of this post is for paid subscribers]