US shipbuilding has declined significantly, weakening national security, the economy, and supply chains. Once a global leader, the US built only 5 ocean-faring ships in 2022, far fewer than China and South Korea who built 1,794 and 734 ships respectively. High costs, outdated shipyards, a shrinking workforce, and heavy reliance on military contracts all diminish our ability to compete with these other nations.  

Building ships in the US costs twice as much as in other countries, largely due to higher wages, strict regulations, and a lack of commercial shipyards. Most US shipyards focus on Navy contracts, leaving little room for commercial production. At the same time, aging infrastructure and outdated technology slow production and drive up costs. A shortage of skilled workers further strains the industry.  

Beyond shipbuilding, too few shipyards and repair facilities create long delays in maintaining the US Navy’s fleet, raising concerns about military readiness. Without significant investment and reform, the industry’s challenges will continue to weaken US competitiveness and national security.  

Proposals include: 

• Invest in Shipyard Modernization—Provide tax credits and grants to upgrade shipbuilding infrastructure, improving efficiency and reducing costs
• Increase Workforce Development Programs—Expand apprenticeships and technical training to address the industry’s skilled labor shortage
• Adopt Modern Technology—Encourage automation, 3D printing, and modular construction to lower production costs and accelerate shipbuilding timelines   
• Create Policy Incentives for Commercial Shipbuilding—Develop subsidy and financing programs to reduce reliance on military contracts and increase competitiveness in the commercial sector