Why Can't the U.S. Build Ships?

The U.S. shipbuilding industry faces significant challenges, primarily due to its inability to compete with foreign shipbuilders. In 2022, the U.S. constructed only five oceangoing commercial ships, while China and South Korea built 1,794 and 734, respectively. The U.S. Navy estimates that China's shipbuilding capacity is 232 times greater than that of the U.S. The high costs associated with U.S. shipbuilding—approximately double that of other countries—are exacerbated by protectionist laws like the Jones Act, which, while supporting domestic shipbuilders, hinder competitiveness. Historically, U.S. shipbuilding thrived before the Civil War but has struggled since, particularly in transitioning from wooden to steam-powered ships. Despite efforts during World War I and World War II to ramp up production, the U.S. failed to establish a sustainable commercial shipbuilding industry post-war. The industry remains reliant on government subsidies and protectionist measures, which do not address the underlying issues of high labor costs and inefficiency compared to foreign competitors. Consequently, the U.S. continues to import a significant portion of its shipping needs, raising concerns about national security and economic independence.

- The U.S. built only five commercial ships in 2022, compared to thousands by China and South Korea.

- U.S. shipbuilding costs are about twice as high as those in other countries.

- Protectionist laws like the Jones Act support domestic shipbuilders but limit competitiveness.

- The U.S. has struggled to transition from wooden to modern shipbuilding technologies since the Civil War.

- Despite wartime production booms, the U.S. has not developed a sustainable commercial shipbuilding industry.