USA Shipbuilding: Inside the Comeback Blueprint

In a bold move to reignite domestic shipbuilding, the President signed a comprehensive executive order in April 2025. The action lays the foundation for long-term maritime expansion, economic resilience, and strategic independence.

• Creates a Maritime Security Trust Fund for long-term shipyard and fleet investments.
• Expands tax credits and subsidies for U.S.-flagged commercial vessel construction.
• Introduces port fees and penalties on Chinese-built vessels to shift demand toward American yards.

• Rebuild both naval and commercial shipbuilding infrastructure.
• Accelerate modernization of aging yards and dry docks.
• Strengthen the U.S. maritime workforce and supply chain independence.

• Marks the most aggressive U.S. maritime policy in decades.
• Signals a shift from reliance on foreign shipbuilders to domestic renewal.
• Establishes a long-term roadmap that aligns government funding with industry growth.

Designed as a financial backbone for the industry, the Maritime Security Trust Fund is a proposed mechanism to provide steady, long-term funding for U.S. shipbuilding, modernization, and port infrastructure. It’s central to both the Executive Order and the proposed SHIPS for America Act.

• Collects revenue from port fees, tariffs on Chinese-built vessels, and maritime duties.
• Allocates multi-year funding to shipyards, workforce training, and fleet expansion projects.
• Reduces reliance on unstable, year-to-year Congressional appropriations.

• Ensure predictable investment in commercial and defense shipbuilding.
• Create a durable financial engine for America’s maritime future.
• Support underserved regional shipyards and innovation zones.

• Stabilizes funding for long-horizon shipyard upgrades and vessel production.
• Signals federal commitment to rebuilding the U.S. maritime base.
• Helps match the industrial-scale support offered by global competitors like China.

While not a brand-new law, the federal government is doubling down on existing Buy American policies within maritime procurement. The aim is to ensure U.S. taxpayer funds support U.S. shipyards, labor, and supply chains—rather than subsidizing foreign-built vessels or components.

• Directs agencies to prioritize U.S.-built ships and domestically sourced materials in contracting.
• Expands scrutiny of waivers and exceptions for foreign-made components.
• Aligns with existing Jones Act and Buy American Act frameworks.

• Keep shipbuilding dollars circulating within the U.S. economy.
• Strengthen domestic supply chains for ship components and materials.
• Ensure federal investments deliver long-term capacity and jobs at home.

• Reinforces demand for U.S.-flagged, U.S.-built vessels.
• Boosts shipyard stability by locking in domestic contracts.
• Reduces vulnerability to global disruptions and foreign cost undercutting.

The proposed SHIPS for America Act sets an ambitious goal: build 250 U.S.-flagged commercial vessels over the next decade. It's one of the boldest legislative proposals aimed at rebuilding the nation’s merchant fleet and maritime workforce.

• Offers tax credits and low-interest loans for shipbuilders and vessel buyers.
• Authorizes funding to modernize shipyards and expand drydock capacity.
• Includes the creation of the Maritime Security Trust Fund to finance long-term goals.

• Restore U.S. competitiveness in the global commercial shipping sector.
• Expand domestic shipyard output beyond military contracts.
• Ensure U.S. shipping resilience in times of economic or geopolitical disruption.

• Marks a generational opportunity to rebuild the American merchant marine.
• Provides consistent demand to sustain and grow regional shipyards.
• Signals bipartisan recognition of the economic and strategic value of U.S. shipbuilding.

Current federal initiatives are shifting away from a Navy-only focus and embracing the need to support both defense and commercial shipbuilding. Policymakers recognize that sustaining a competitive shipbuilding base requires a steady mix of military and merchant vessel production.

• Directs funding and policy attention to U.S.-flagged commercial ships, not just naval vessels.
• Includes merchant fleet expansion targets in strategic plans and legislation.
• Supports multi-use infrastructure upgrades that benefit both sectors.

• Strengthen national readiness by maintaining a versatile shipbuilding base.
• Revive the U.S. commercial fleet to support economic and strategic mobility.
• Build a sustainable pipeline of contracts to stabilize the industry across cycles.

• Bridges the gap between military demand surges and peacetime slowdowns.
• Encourages innovation and efficiency across vessel classes.
• Increases long-term viability for small and mid-size U.S. shipyards.

Established by President Trump's executive order in January 2025, the Department of Government Efficiency (DOGE) is a temporary federal agency led by Elon Musk. Its controversial mission is to streamline government operations, reduce wasteful spending, and enhance efficiency across federal agencies, including those involved in shipbuilding.

• Conducts audits of federal agencies to identify inefficiencies and recommend reforms.
• Implements cost-cutting measures, including contract terminations and workforce reductions.
• Utilizes AI tools, such as Grok AI, to analyze government data and operations.

• Improve efficiency in federal shipbuilding programs by identifying and addressing delays and cost overruns.
• Enhance transparency and accountability in government spending related to maritime projects.
• Support the revitalization of the U.S. shipbuilding industry through streamlined processes.

• Represents a significant federal effort to address longstanding issues in government efficiency.
• Impacts the shipbuilding sector by aiming to reduce delays and budget overruns in naval and commercial projects.
• Potentially highlights the administration's commitment to revitalizing the U.S. maritime industry.

Shipyards across the U.S. are facing a major labor crisis. While orders are increasing, the skilled workforce needed to deliver those vessels isn’t keeping up. From welders and pipefitters to engineers and electricians, the maritime talent pool is shrinking—and turnover is high.

• Over 50% of new hires leave shipyards within their first year, often for better-paying jobs in other industries.
• Retirements are outpacing new talent, with fewer young workers entering trades like welding and marine systems.
• Many yards report persistent unfilled positions, even with recruitment bonuses and training incentives.

• Delays in construction timelines due to labor shortages at all stages of production.
• Increased reliance on overtime and short-term contractors, driving up costs.
• Training cycles are too slow to keep up with rising federal demand for vessels.

• Labor gaps are the single biggest bottleneck to hitting build targets in both defense and commercial shipbuilding.
• Sustainable workforce development is critical for long-term shipyard stability.
• Without bold workforce solutions, even well-funded shipbuilding programs may stall.

Even when funding is available and designs are finalized, many U.S. shipyards can't hit production targets due to physical constraints and thin supplier networks. With limited capacity and outdated systems, shipbuilders are struggling to scale up fast enough.

• Insufficient drydock space, fabrication bays, and outfitting capacity to handle increased workload.
• Critical suppliers—especially for propulsion systems, electronics, and specialty steel—are backlogged or overly concentrated.
• Delays in receiving components ripple across project timelines, forcing yards to resequence builds or pause work.

• New ship programs (military and commercial) are routinely delayed, even when labor and funding are ready.
• Shipyards have limited flexibility to absorb new contracts without expanding physical infrastructure.
• U.S. dependence on a small number of key suppliers increases risk across the maritime value chain.

• Modernizing production flow and rebuilding the supplier ecosystem is as urgent as workforce development.
• Delays from bottlenecks often trigger cost overruns and contract penalties.
• Without upstream fixes, even the most advanced ships can’t be delivered on time.

U.S. shipbuilding programs are frequently plagued by spiraling costs and missed deadlines. From submarines to support vessels, even high-priority projects routinely exceed budget and delivery expectations—putting pressure on the Navy, shipbuilders, and taxpayers alike.

• Shipbuilders often overpromise delivery timelines that aren’t realistic given current capacity and labor gaps.
• Materials inflation, rework, and out-of-sequence construction drive up costs mid-project.
• Delays in one stage of a build frequently cascade through the production schedule.

• The Navy and commercial operators struggle to plan operations around uncertain vessel delivery dates.
• Contract adjustments and overruns increase government spending without adding fleet capacity.
• Confidence in U.S. shipyard reliability suffers internationally and at home.

• Repeated cost overruns erode political and financial support for new shipbuilding initiatives.
• Fixing delay patterns requires better scheduling, oversight, and project management discipline.
• Staying on time and on budget is critical to rebuilding long-term trust in American shipyards.

Many U.S. shipyards are operating with century-old layouts and undermaintained equipment. From Navy-owned yards to commercial facilities, decades of underinvestment have created environments that can’t support efficient modern production at scale.

• Some Navy shipyards were originally built for wooden ships and are still in use today.
• Poor workflow layouts force unnecessary material handling and rework.
• Outdated machinery and limited drydock capacity slow productivity and increase downtime.

• Delays in ship maintenance and new builds due to facility limitations.
• Reduced ability to integrate modern shipbuilding technologies and automation.
• High operating costs for workarounds and temporary fixes.

• Infrastructure upgrades are essential to unlocking faster, more scalable ship production.
• The Navy’s own readiness is at risk when maintenance yards fall behind schedule.
• Modernizing facilities is as vital as funding the ships themselves.

China currently builds over 50% of the world’s commercial ships by tonnage—compared to less than 1% built in the United States. Backed by state subsidies, massive industrial zones, and a steady stream of commercial and military orders, China’s shipyards are shaping the global standard for volume and pricing.

• Chinese yards benefit from scale, automation, and consistent government funding and procurement.
• Lower labor and production costs make it nearly impossible for U.S. yards to compete on price alone.
• China leads in newer areas too, such as green ship technology and electric propulsion systems.

• U.S. commercial fleet is aging and shrinking while global competitors expand rapidly.
• National security risks emerge when foreign countries dominate critical logistics assets.
• Supply chain reliance on Chinese-built parts and vessels undermines maritime independence.

• Without a credible response, U.S. shipyards will continue to lose global relevance and leverage.
• Policy measures like tariffs and domestic investment must be strategic and sustained.
• Competing with China’s scale requires public-private coordination—not just capital.

The Jones Act, which requires goods moved between U.S. ports to be transported on U.S.-built, -owned, and -crewed vessels, remains one of the most polarizing topics in American maritime policy. Supporters view it as vital to national security; critics argue it raises costs and limits competition.

• Jones Act-compliant vessels are significantly more expensive to build and operate than foreign alternatives.
• Regions like Puerto Rico, Hawaii, and Alaska argue the law inflates consumer prices and limits supply options.
• Maritime unions and shipyards strongly support the act as a cornerstone of U.S. maritime resilience.

• The law ensures a base level of demand for U.S. shipyards and American-flagged vessels.
• It limits the entry of low-cost, foreign-built ships into domestic supply chains.
• Policy battles over the act influence future shipbuilding legislation and incentives.

• The Jones Act plays a central role in sustaining domestic shipbuilding—even as it invites scrutiny.
• Calls to amend or repeal it intensify during supply shocks or natural disasters.
• Maintaining or reforming the act will shape how the U.S. balances security, cost, and competition in maritime trade.

Defense startup Saronic has acquired Gulf Craft, a 100-acre shipyard in Franklin, Louisiana, with plans to invest over $250 million in facility upgrades. This move aims to transform the site into a production hub for their new 150-foot autonomous surface vessel, the Marauder.

• Modernization of infrastructure, including new machinery and updated facilities.
• Retention of Gulf Craft’s experienced workforce and creation of over 500 new jobs over the next 3–4 years.
• Capacity to produce up to 50 unmanned ships annually.

• Accelerate the development and production of medium unmanned surface vessels (MUSVs).
• Enhance U.S. capabilities in autonomous naval technology.
• Lay the groundwork for the future Port Alpha, envisioned as the world's most advanced shipyard for unmanned vessels.

• Represents a significant private investment in U.S. shipbuilding infrastructure.
• Supports the domestic defense industrial base and reduces reliance on foreign shipbuilding.
• Positions the U.S. as a leader in the emerging field of autonomous maritime vessels.

The NSMV program exemplifies a successful public-private partnership revitalizing U.S. shipbuilding. Managed by TOTE Services and constructed by Philly Shipyard, this initiative delivers state-of-the-art training vessels for maritime academies while bolstering domestic shipbuilding capabilities.

• Implementation of the Vessel Construction Manager (VCM) model, allowing commercial best practices in government shipbuilding.
• Construction of five advanced training ships for state maritime academies, each equipped for disaster relief missions.
• Use of U.S.-built components and union labor, reinforcing the domestic maritime industry.

• Provide modern training platforms to educate the next generation of U.S. merchant mariners.
• Enhance national readiness with vessels capable of supporting humanitarian assistance and disaster relief operations.
• Demonstrate the efficacy of innovative contracting models in reducing costs and accelerating delivery timelines.

• Supports nearly 400,000 U.S. maritime jobs, contributing to economic growth and workforce development.
• Strengthens the U.S. shipbuilding sector by showcasing successful collaboration between government and industry.
• Sets a precedent for future government shipbuilding programs to adopt efficient, cost-effective practices.

The U.S. Navy and private sector are rapidly advancing autonomous vessel technologies to enhance maritime capabilities. Key initiatives include the development of unmanned surface vessels (USVs) and the establishment of specialized squadrons to operationalize these platforms.

• USX-1 Defiant: DARPA's 180-foot unmanned surface vessel, designed for extended autonomous operations, is undergoing sea trials as part of the NOMARS program.
• GARC Production: The Navy is scaling up production of Global Autonomous Reconnaissance Craft (GARC) to 32 units per month, enhancing reconnaissance capabilities.
• USVRON 7: A new Unmanned Surface Vessel Squadron is being established in San Diego to manage and deploy various USVs, including GARC.

• Enhance maritime domain awareness and operational flexibility through autonomous platforms.
• Reduce risks to personnel by deploying unmanned systems in contested environments.
• Accelerate the integration of cutting-edge technologies into naval operations.

• Autonomous vessels represent a significant shift in naval warfare, offering cost-effective and scalable solutions.
• These developments position the U.S. to maintain a technological edge in maritime operations.
• Collaborations between government agencies and private companies are crucial for rapid innovation and deployment.

The Michigan Maritime Manufacturing (M3) Initiative is a comprehensive public-private partnership aimed at revitalizing the U.S. shipbuilding workforce. With over $50 million in combined federal, state, and industry investments, M3 focuses on developing a skilled labor pipeline to support the Navy's shipbuilding needs.

• Accelerated training programs in maritime welding and CNC machining at community colleges like Macomb and Oakland, funded by a $16 million Navy investment.
• Establishment of a $14.5 million Center for Naval Research and Education at the University of Michigan to advance ship design and engineering.
• International partnership between the University of Michigan, Seoul National University, and HD Hyundai Heavy Industries for student and faculty exchanges and on-site training in South Korea.

• Address workforce shortages in the submarine and broader shipbuilding sectors.
• Leverage Michigan's manufacturing heritage to strengthen the maritime industrial base.
• Foster innovation through academic and industry collaboration on advanced shipbuilding technologies.

• Creates a sustainable talent pipeline for the U.S. Navy and commercial shipbuilders.
• Enhances the competitiveness of U.S. shipbuilding through research and development.
• Demonstrates the effectiveness of coordinated efforts between government, academia, and industry in addressing national security challenges.

The U.S. shipbuilding industry is increasingly embracing green technologies to reduce carbon emissions and promote environmental stewardship. This shift is driven by both domestic initiatives and international regulatory pressures.

• Implementation of alternative fuels such as methanol and ammonia in new vessel designs, aiming to decrease reliance on traditional fossil fuels.
• Adoption of wind-assisted propulsion systems, including rotor sails and kite systems, which can reduce fuel consumption by up to 30% on long voyages.
• Participation in international agreements targeting net-zero emissions by 2050, influencing U.S. shipbuilders to innovate and align with global standards.

• Position the U.S. as a leader in sustainable shipbuilding practices.
• Enhance competitiveness in the global market by offering eco-friendly vessels.
• Contribute to national and international efforts to combat climate change through reduced maritime emissions.

• Aligns U.S. shipbuilding with emerging environmental regulations and consumer preferences.
• Opens new markets and opportunities for American shipbuilders specializing in green technologies.
• Demonstrates commitment to innovation and sustainability in the maritime industry.

Strategic investments are revitalizing regional shipbuilding hubs across the United States, leveraging local assets and fostering innovation to strengthen the maritime industry.

• Ocean Tech Hub (Southeastern New England): Led by the Rhode Island Commerce Corporation, this hub focuses on advancing ocean technology innovation, including AI-enabled robotics and sensors, by leveraging coastal assets and expanding access to testing facilities.
• Solano County, California: California Forever, backed by Silicon Valley investors, proposes transforming 1,400 acres in Solano County into a shipbuilding hub, aiming to revitalize the region's maritime industry and support U.S. naval power.
• Hampton Roads, Virginia: Home to Newport News Shipbuilding and the Norfolk Naval Shipyard, this region remains a cornerstone of U.S. shipbuilding, benefiting from substantial defense spending and a skilled maritime workforce.

• Enhance regional capabilities in shipbuilding and maritime innovation.
• Foster public-private partnerships to drive economic growth and job creation.
• Strengthen national security by expanding domestic shipbuilding capacity.

• Supports the resurgence of U.S. shipbuilding through targeted regional investments.
• Promotes technological advancement and workforce development in key maritime regions.
• Contributes to a more resilient and competitive national maritime industry.