A new report has raised concerns that the decline of U.S. shipbuilding is not only a security issue but also a growing threat to the country’s trade competitiveness, reports gCaptain.
How to solve America’s shipbuilding crisis
Once a major force in global ship construction, the U.S. now produces fewer than five large commercial vessels per year, while China’s output exceeds 1,700 annually.
The imbalance, the report argues, is the result of decades of policy decisions that removed support for domestic shipbuilding while allowing foreign competitors—especially China—to dominate the industry. China’s state-backed strategy, with heavy subsidies and integration of civilian and military yards, has created an unmatched advantage in cost, scale, and global market share.
For the U.S., the consequences extend well beyond the naval sphere. The report warns that reliance on foreign-built ships leaves American carriers at a disadvantage, erodes domestic supply chains for steel and fabrication, and weakens the supporting workforce. Over time, the lack of shipyard investment has also limited innovation, making it harder for U.S. builders to compete in efficiency and green-ship technology.
The analysis outlines several measures to reinvigorate the industry. These include the creation of a national shipbuilding fund, tax incentives for companies investing in new tonnage, preferential rules for U.S.-built vessels in government contracts, and stronger requirements for U.S.-flagged and U.S.-crewed ships in domestic and strategic trades. Investments in workforce training and modernized yard infrastructure are also highlighted as essential.
For the maritime sector, the report suggests that a revitalized U.S. shipbuilding industry could generate significant opportunities. Expanded government procurement would provide a baseline of demand, while new policies could encourage commercial operators to place orders domestically rather than overseas. Such measures, if implemented, could revive jobs, restore technical expertise, and improve resilience across the supply chain.
While acknowledging that rebuilding the sector will take time, the report’s authors stress that the alternative—continued decline—would deepen dependence on foreign shipbuilders and further weaken America’s position in global shipping markets. For industry stakeholders, the message is clear: shipbuilding revival is not only about national defense but also about securing the future of U.S. maritime trade.
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Source: gCaptain
