Why U.S. Shipbuilding Collapsed — And The Push To Rebuild It

Industry Overview & Challenges - China dominates global commercial shipbuilding with 53% market share, while the U S accounts for only about 0 1% [2] - The U S shipbuilding industry faces challenges including talent shortages, antiquated operating procedures, and outdated facilities [3][15] - U S shipbuilders face challenges including building complicated ships like nuclear submarines and LNG vessels to inconsistent funding [29] - U S-flagged vessels cost six to eight times more to build and two to three times more to operate than foreign-flagged counterparts [17] Investment & Modernization - Hanwha invested $5 billion to modernize the Philly Shipyard, aiming to increase automation and expand production [1][9] - South Korea committed $150 billion towards U S shipbuilding [10] - Fincantieri has invested over $800 million in its four U S shipyards [26] Production & Capacity - Hanwha Philly Shipyard currently delivers about 1 to 1 5 ships a year, with aspirations to build 20 ships annually [8] - Hanwha shipyard in South Korea produces about 40 to 50 ships a year [9] - The U S Navy has a goal of building 381 ships over the next three decades, requiring up to $36 billion [37] Workforce & Training - U S shipbuilders employed more than 105,000 people in 2023, but face a shortage of skilled professionals and an aging workforce [20] - Shipbuilders will need an additional 174,000 workers over the next decade to meet the Navy's goals [21] - Hanwha is sending U S workers to South Korea for training to accelerate skills transfer [22] Technological Advancements - New technologies like automation, robotics, AR, and VR-training could help propel the shipbuilding industry [30][31] - Modular construction is another technique that could boost efficiency and help U S shipyards compete [32]