Why Can't the U.S. Build Ships?
U.S. shipbuilding capacity has declined significantly, with only five large commercial ships ordered in 2022, while China's capacity is 232 times greater, hindered by high costs and protectionist laws.
Read original articleThe decline of U.S. shipbuilding capacity is a long-standing issue, with commercial shipbuilding virtually nonexistent today. In 2022, the U.S. had only five large oceangoing commercial ships on order, compared to thousands from China and South Korea. The U.S. Navy estimates that China's shipbuilding capacity is 232 times greater than that of the U.S. The high costs of U.S. shipbuilding, which can be two to four times more expensive than in other countries, are exacerbated by protectionist laws like the Jones Act, which limit competition. Historically, the U.S. was a leader in shipbuilding during the 19th century, particularly with wooden ships, but failed to adapt to the transition to steam and metal ships, leading to a decline in competitiveness. Despite efforts during World War I and World War II to ramp up ship production, the U.S. did not capitalize on its wartime shipbuilding successes to establish a robust commercial industry post-war. Instead, it reverted to less efficient methods and faced high labor and material costs, resulting in a marginal role in global shipbuilding by 1950. The U.S. shipbuilding industry has struggled to innovate and compete internationally, leading to a reliance on foreign-built ships for a significant portion of its maritime trade.
- U.S. commercial shipbuilding is nearly nonexistent, with only five large ships ordered in 2022.
- The U.S. Navy estimates China's shipbuilding capacity is 232 times that of the U.S.
- High costs and protectionist laws hinder U.S. shipbuilding competitiveness.
- Historical leadership in shipbuilding has not translated into modern competitiveness.
- Post-war, the U.S. failed to leverage wartime production successes for commercial shipbuilding growth.
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While there is peace, US domestic shipbuilding fundamentally doesn't "matter" all that much politically, not compared to all the thousands of other daily issues or the big issue, tax. The article makes clear that all previous efforts at onshoring shipbuilding, including the hugely successful war efforts, involved spending a lot of public money.
If you ask the average taxpayer, how much do they want to spend on subsidies for US shipyard workers, what answer are you going to get?
(I also think the Jones Act, like other protectionism, keeps the industry intact but inefficient, another uncomfortable choice)
>> high cost of inputs, particularly labor and steel
Well, yes. A side effect of being a rich country is expensive labour because workers have other options.
> But it now faces a potential naval adversary, in the form of China, with dramatically higher shipbuilding capacity
The US has something like 5,000 live nuclear warheads, use of which might significantly reduce Chinese shipping if it comes to that.
If China and the U.S. get into a conflict, like every war it will be a question of war production. It takes a long time to build a modern ship. It takes even longer to build a shipyard capable of producing modern ships.
Any great power war will be long and drawn out unless nukes are used.
In a defense of Taiwan or anywhere else in the South China Sea, the defenders advantage will play a role. China with it's numerous shipyards and hypersonic weapons could easily keep the U.S. Navy out and then even more easily out produce it to replace lost ships.
It's also a questionable strategy to outsource your ship building to the two countries closest to your only potential naval rival. Usually countries fighting protracted long wars do not put their primary means of production next to enemy forces.
Hopefully things remain peaceful and this never matters.
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