The Resurgence of U.S. Shipbuilding: A Realistic Perspective

Once again U.S. shipbuilding, or rather the lack thereof, has raised its head. There are those who say that U.S. shipbuilding is a train that has left the station (yes, a purposefully odd but correct metaphor), while others are hoping for a new dawn of U.S. shipbuilding dominance.

I know it can be done, but only if there is steel-eyed realism and an iron will to do it.

I also know that magazine editors hate lists, but I am going to irritate Greg by doing just that: creating a list of realities surrounding the proposed resurgence of U.S. shipbuilding.

1. The maritime industry deserves government focus and support. It is a huge and deeply underappreciated economic driver. Shipbuilding is one part of the game, and for the U.S. it is also an important existential issue with regard to defense capabilities.
2. The cost of ships is strongly related to the time it takes to build them. A ship that takes six months to build will cost only a fraction of a ship that takes two years to build. Speed up production and the price drops.
3. Don’t overfocus on other countries. They are using today’s technologies; only tomorrow’s technologies can drastically change the game. Improved robotic design can make shipbuilding in the U.S. more viable.
4. Don’t get hung up on the numbers. Despite the numbers being thrown around, the U.S. is a potent shipbuilder. In certain shipbuilding categories, the U.S. is reasonably competitive, generally on smaller, high-tech vessels produced in series.
5. Commercial series production, over extended periods of time, is THE magic bullet. It reduces costs, eases production efficiency investment, reduces supply chain costs and produces workforce stability.
6. One Design, One Yard + Subsidies. Pick a selection of vessels, but don’t distribute construction of one design between different yards. The best bidder gets the entire series. One design, one yard, and subsidies tied to performance improvements in the industry over time.
7. It’s Electric. Commit to U.S.-built electric drive in all U.S.-built vessels to address carbon emissions.
8. The customer is NOT always right. Any small customer-demanded modification in series production is a death knell.
9. The next generation. Reach out to young people to enter the industry and make it easy for them to do so.
10. Build the supply chain. Invest in a rugged material and equipment supply chain to support shipbuilding.
11. Invest in workforce development. Spend money on social programs to attract and retain workers in the industry.
12. Subsidies and trade protection. Subsidies need to be tied to performance improvements, and trade protection carefully applied to address international cost differentials.

Meanwhile, all of this needs to be explained to the public. Increases in Kings Point and state maritime academy funding cannot solve the problem. This needs to be a grassroots effort to bridge the gap between young people and the maritime industry.

We have a great opportunity to increase shipbuilding and maritime industry visibility by building national level exposition centers as suggested in the SL7EXPO effort. It is cheaper than investing in hardware, and if we cannot find and attract the young people to fuel the industry’s future, why bother wasting money on hardware?

For every column I write, MREN has agreed to make a small contribution to an organization of my choice. For this column, I select SL7EXPO.