Posted on January 1, 2025
George Whittier is CEO of Fairbanks Morse Defense.
The U.S. Navy’s ambitious 30-year shipbuilding plan to expand the fleet to 330 ships by the 2030s and 377 ships by 2045 faces significant challenges due to a shortage of skilled labor in the shipbuilding industry.
This shortage is a result of historical shifts away from vocational training and the competition for workers with other industries.
To address this, I believe there is a need for innovative recruitment efforts, transparency with the Navy and a potential reorganization of production to include smaller shipyards and leverage underutilized labor resources in the Midwest.
A Legacy Of Wartime Production
During World War II, more than 1 million workers contributed to the war effort, building more than 9,000 warships between 1941 and 1945. Our nation continued its robust shipbuilding programs until 1980, when the government’s commercial shipbuilding subsidies ended, and the industry became focused on a single customer—the U.S. government.
As a result, more than 4 out of every 10 jobs in the private shipbuilding sector are gone today, according to The Eno Center for Transportation. When you account for population growth in the labor force, Eno also reports that the industry has lost 145,000 jobs since 1980.
These were all well-paid, middle-class jobs, with shipbuilders making an average wage of $73,000, which was well above the national worker’s salary for that time frame. This also included an additional 580,000 supporting jobs, such as engineers, designers, steelworkers, accountants, etc.
Barriers To Workforce Growth
The last 20 to 30 years have seen an increased focus on encouraging high school students to earn college degrees, with less value placed on pursuing vocational trades. This means fewer young workers are entering the shipbuilding trade, leaving the industry vastly under-resourced. For instance, in 2020, Bath Iron Works hired 1,800 new workers to replace retirees, highlighting the need for skilled workers.
The Shipbuilders Council of America has estimated that approximately 20,000 additional workers are needed to build a 350-ship Navy. But even at a shipbuilder’s wage of $30 per hour, plus healthcare and retirement benefits, aggressive competition to hire workers after the pandemic made other sectors more competitive.
On top of that, the shipbuilding industry is physically demanding, which can deter some workers. And as competition has increased and job opportunities are more readily available, there are lower barriers to entry to switch employers than in previous generations.
Engaging The Next Generation
I believe engaging the younger generation in shipbuilding is a crucial and inspiring mission; they hold the key to the future of this industry.
Toward recruiting from within this demographic, I believe we can take inspiration from recruitment initiatives such as the “Build Submarines” website and the “We Build Giants” ad campaign, which are both operated by the BlueForge Alliance nonprofit and funded by a Navy contract. They are taking innovative approaches to reaching a new generation through advertisements placed during reality TV programs, NASCAR events, WNBA games and Major League Baseball broadcasts.
Still, it’s going to take more than slick advertising to persuade young job seekers to leave their homes and embark on a shipbuilding career, no matter how significant the opportunities may be for our nation. Whether they live in rural communities or in the big city, American workers have a wide range of job opportunities enabling them to find work without leaving their families or communities.
One way for the industrial sector to create interest among younger generations is through apprenticeship and intern programs. To build a more effective workforce, industry leaders can consider implementing internship programs that go beyond teaching specific job skills.
From experience, I know that offering interns comprehensive practice, such as a “day in the life” of a manufacturing position, can provide valuable insight into the role while exposing them to potential career pathways. This approach helps potential shipbuilders better understand the breadth of opportunities available, equipping them with the knowledge needed to make informed career decisions.
Beyond internships, manufacturers can work directly with vocational schools and community colleges to develop curricula and certification programs designed to create a pipeline of workers with in-demand skills.
The integration of technology is another way to make industrial careers more attractive to a younger generation that has grown up with video games. Virtual training programs and the use of advanced technology such as robotics will have greater appeal to the digital generation.
Leverage Transparency And Decentralized Production Models
On the other side of the coin, shipbuilders and their suppliers need consistency and transparency from the Navy about its long-range shipbuilding plans. The industry should push for contracts backed up by demand signals that show how the Navy is moving full speed ahead to achieve a fleet of more than 350 ships; this is especially true for those whose only customer is the U.S. Navy.
Otherwise, it’s difficult for shipbuilders to know exactly where to focus investments into upgrades, inventory and labor—and ultimately to recruit and retain a future workforce.
Interestingly, from my observations, the labor challenges experienced at larger shipyards are not shared by small-to-midsized shipyards, and maritime defense suppliers in the Midwest do not tend to face the same labor issues as larger shipyards. I believe leveraging the Midwest’s underutilized labor resources presents an opportunity to revitalize U.S. shipbuilding.
The automotive industry’s decentralized production model can serve as a blueprint for shipbuilding, promising immediate benefits without significant investments. For instance, building components in St. Louis and utilizing the Mississippi River as a transportation corridor to streamline logistics can facilitate the seamless integration of components into shipyards.
Likewise, small and midsized shipyards present viable alternatives for building modules or components that can be transported to larger shipyards for assembly, expediting the production of critical platforms such as amphibious vessels and submarines.
I see the continuing promise for the shipbuilding industry as a career path with immense potential. This industry is not just about building ships; it’s about building futures that will help protect the freedom of the seas. It’s time we rekindle the passion for these trades in our young workforce.
