The U.S. shipbuilding industry is grappling with a critical crisis, having collapsed over the past generation. Currently, the U.S. produces less than 1% of the world's commercial vessels, a stark decline from its position as the leading shipbuilder in 1975. This downturn is largely attributed to protectionist policies, which have been detrimental to the industry's competitiveness [e1720faa].
In a bid to revitalize its shipbuilding capabilities, the U.S. Navy is collaborating with South Korean shipbuilder Hanwha Ocean Co., which recently acquired a former U.S. Navy shipyard in Philadelphia. This partnership aims to enhance shipbuilding efforts amid China's rapid naval expansion, where 1,749 large oceangoing vessels are currently under construction compared to a mere five in the U.S. as of early 2023 [ee896352][e1720faa].
However, the challenges extend beyond shipbuilding to a critical shortage of U.S. mariners, which poses a direct threat to national security. Admiral Lisa Franchetti has highlighted the urgent need for action regarding U.S. strategic sealift readiness, as the U.S. Merchant Marine, vital for military logistics, faces a significant deficit. A 2018 report by Mark Buzby indicated a shortfall of nearly 1,800 mariners, and General Van Ovost testified in April 2024 about growing concerns over this issue [3639fe03].
Recent news from August 2024 revealed that the Military Sealift Command (MSC) may have to lay up 17 ships due to crew inadequacies, further stressing the importance of a robust maritime workforce [3639fe03]. Currently, U.S.-flagged ships carry only 1.5% of international trade, underscoring the need for more U.S.-flagged vessels to support both commercial and military logistics [3639fe03].
In a significant development, on October 28, 2024, Congressman Joe Courtney and Adele Ratcliff, Director of Innovation Capability and Modernization at the U.S. Department of Defense, announced a $12.5 million contract with Junior Achievement USA. This funding will support the JA Maritime program, which aims to inspire over 60,000 students in Connecticut and Rhode Island towards careers in shipbuilding. This initiative addresses workforce challenges in the maritime industry, which are crucial for national security and economic prosperity. The Electric Boat shipyard has already hired 5,300 workers last year and over 3,000 this year, highlighting the pressing need for a skilled workforce [dd391dee].
Secretary of the Navy Carlos Del Toro's recent visits to Japan and South Korea highlight the U.S.'s commitment to strengthening international partnerships in shipbuilding. This includes not only enhancing naval capabilities but also fostering economic ties that can stimulate growth in the domestic shipbuilding industry [ee896352].
In light of the mariner shortage, Maritime Administrator Ann Phillips has called for immediate actions, including recruitment campaigns, retention strategies, and modernization of maritime academies. Long-term strategies should focus on boosting commercial cargo demand and reducing reliance on government contracts [3639fe03].
Moreover, a recent analysis indicates that by 2030, the U.S. could face approximately 20-30 million unfilled manufacturing jobs, potentially costing the economy over $1 trillion. The Navy's '1+2 Mission' aims to build one Columbia-class and two Virginia-class submarines annually, with over $273 million allocated to submarine suppliers. Advanced manufacturing technologies are crucial for improving production capacity and quality, as the skills gap in the maritime sector has been a growing concern since the 1990s, with 140,000 workers needed for submarine production [a8737445].
As the U.S. navigates the complexities of its shipbuilding industry and the pressing need for qualified mariners, the emphasis on international collaboration and proactive domestic policies is becoming increasingly crucial. The future of both the U.S. shipbuilding sector and its maritime workforce may depend on the ability to engage with global partners and adapt to the changing dynamics of international trade and defense [e1720faa][3639fe03].