Posted on June 2, 2025
The U.S. naval shipbuilding crisis imperils national security and undercuts economic vitality. But it is not a new problem—Mike Petters wrote a Proceedings article almost 20 years ago titled “American Shipbuilding: An Industry in Crisis.” The problem persists, and confronting it is more important than ever.
I have witnessed the evolution of the U.S. shipbuilding industry throughout my career, first as the Master Chief Petty Officer of the Coast Guard, and now as an employee of Bollinger Shipyards. I have seen the factors that play into the industry’s current slump, and I have also seen success stories that could help model its recovery. Solutions to renew U.S. shipbuilding will rely on the combined dedication of lawmakers and industry partners.
A Historical Perspective
History shows what is possible when a nation unites behind a common goal. During World War II, U.S. shipbuilders delivered more naval combatants than British, Japanese, and German builders combined. The effort started from a minimal industrial base; production had slowed to a trickle following World War I and during the Great Depression. The United States’ transformation into the “arsenal of democracy” proved that collective will can overcome substantial obstacles.1
It is not certain that the United States now could replicate the feat, but the need for immediate action is clear. The multifaceted challenges facing U.S. shipbuilding include workforce shortages, overly bureaucratic procurement processes, inconsistent funding, design instability, and a limited industrial base. These issues are interconnected, and addressing them requires a new collaborative approach.
Personal Reflections on Shipbuilding
During my Coast Guard career, I spent extensive time at Bollinger Shipyards in Lockport, Louisiana. I remember being amazed at the manufacturing lines for Island-class and Marine Protector-class vessels. Ships were fabricated through a system of workstations. To a young boatswain’s mate, seeing large sections of hulls being worked on upside down to improve worker accessibility seemed like the height of innovation.
After retiring from the Coast Guard, I joined the Bollinger team working on the fast response cutter program. This experience reinforced my belief that pockets of excellence exist in the industry, despite its broader struggles. The fast response cutter met or exceeded all contract requirements. Coast Guard leaders often refer to it as a “game changer.” Over the life of the program, the cutters have been delivered on time and under projected budget. The original program of record was 58 ships. With 67 cutters now on contract, the program continues to receive robust congressional support, resulting in additional vessels. The Coast Guard has used the platform for purposes far beyond its original mission requirements.
Unfortunately, the fast response cutter’s success is the exception. Systemic issues continue to hinder the industry.
U.S. shipbuilding relies on the combined dedication of lawmakers and industry partners. Here, an uncompleted U.S. Coast Guard cutter sits in a hangar bay. (Cheyenne Basurto)
Proposed Solutions
Overcoming the challenges to U.S. shipbuilding requires government and industry to collaborate on a comprehensive approach to streamline processes and reinvigorate the workforce. The approach should center on the following touchstones.
Expanding and Developing the Workforce
The shipbuilding industry must attract the next generation of skilled workers through public-private partnerships. Programs such as the Bollinger Mississippi Shipfitter Bootcamp, launched in 2024 in collaboration with the Mississippi Gulf Coast Community College and the State of Mississippi, provide hands-on training and clear pathways to employment. The 14-week program includes 12 weeks in the classroom and another two in the shipyard working with trade supervisors. The inaugural program received an enthusiastic response from shipyard supervisors, educators at the school, and students—applications more than doubled for a second term and continue to grow. The program has expanded to additional shipyard trades.2
Another shipbuilder, Eastern Shipbuilding Group, partnered with the Bay County Artificial Reef Association and the University of Florida to launch the Coastline Initiative. The program encourages students from local schools to design artificial reefs, while promoting welding and engineering skills.3
These initiatives are more than just training programs; they are community investments that create a pipeline of skilled labor tailored to industry needs. Promoting vocational careers requires a cultural shift. The Department of Education and the Department of Labor should amplify efforts to integrate technical education into public schools. If young people know about the rewarding opportunities in shipbuilding, more of them may choose this vital field. This could have far-reaching economic benefits. According to the National Association of Manufacturers, for every $1.00 spent in manufacturing, another $2.64 is added to the economy—one of the greatest multiplier effects of any economic sector.4
Community support is essential. Shipyards should engage with local schools, community colleges, and vocational programs to create apprenticeships and internships. Integrating shipyards with local communities can aid recruitment and retention.
Streamlining Procurement and Contracting Processes
The federal procurement system must become more agile. A 2023 National Academies consensus study report stated:
Historically federal acquisition systems and the federal budgeting process were set up to field technologies and capabilities identified four or more years in advance, which can be too slow to keep pace with the state of the market in technological and industrial innovation and indeed the speed with which adversaries deploy new, commercially available technological capabilities.5
The Navy and Coast Guard can use existing authorities that allow for rapid prototyping, adapting commercial technologies, and strengthening pilot programs.
Decision-makers also should consider commercial best practices when building a new class of ship. Not every vessel is a major combatant with an operational demand for all the redundancies warships require. Adopting efficient design standards could save significant costs and speed delivery. The Maritime Administration’s (MarAd’s) National Security Multi-Mission Vessel (NSMV) program is a prime example. Using commercial best practices instead of following the normal government procurement process saved MarAd $428 million per ship and accelerated construction.6 From the outset, Congress specified the vessel would be built to commercial design standards and use commercial construction practices, and the results speak for themselves. The NSMV is now a mature program delivering high-quality, state-of-the-art ships.
By applying common-sense standards when appropriate, costs can be reduced, and timelines shortened, without compromising essential capabilities.
Making Funding Stable and Predictable
Stable funding is the lifeblood of shipbuilding. Implementing multiyear contracts provides the consistency that shipyards need to plan effectively, invest in infrastructure, and maintain skilled labor forces.7 Unpredictable funding patterns, on the other hand, prompt workforce layoffs and hinder investment in new technologies. At a time when shipyards face challenges related to supply chains, labor, access to capital, and inflation, unpredictable funding could push them past the breaking point.
Former Secretary of the Navy Carlos Del Toro called for multiyear contracts and advance procurement funding to ensure consistency and predictability in shipbuilding. Only Congress can make that happen, by committing to reliable budgets, passed on time, that support year-over-year, uninterrupted shipbuilding programs.
Minimizing Design Changes
The Government Accountability Office has repeatedly emphasized that starting construction before a design is final leads to delays and cost increases. A significant example is the Constellation-class frigate. A parent design originally was chosen for the frigate, to reduce risk and shorten the path to design maturity, but later design changes have delayed delivery by years.8
Conversely, the fast response cutter stands out for its success in this area. Strong program management and production quality, coupled with expert oversight from the on-site government project office and contracting officials, resulted in a superior on-time product.
Balancing innovation with practicality is essential. Rapid technological changes tempt decision-makers to continually update designs. This leads to delays and cost overruns, and almost every current government shipbuilding effort has fallen behind because of constant changes parachuted into the process. Focusing on proven technologies while allowing for future upgrades can keep projects on schedule and under budget.
Protecting the Industrial Base
The Merchant Marine Act of 1920—also known as the Jones Act—mandates that goods transported between U.S. ports be carried on ships that are U.S.-built, -owned, and -crewed. Proponents of scrapping the legislation must understand that repealing the Jones Act could devastate the remaining industrial base, leading to job losses and compromising national security by outsourcing shipbuilding capabilities.9
Avoiding overreliance on foreign manufacturing is crucial. The Covid-19 pandemic revealed significant vulnerabilities in global supply chains. Outsourcing naval shipbuilding to foreign shipyards would exacerbate these problems.
The U.S. shipbuilding industry already carries a heavy regulatory burden. U.S. environmental laws, safety regulations, and fair labor practices increase costs relative to some foreign competitors. While these standards are essential and reflect national values, acknowledging the burden they create could inform new policies that support domestic industries without compromising principles.
A worker cuts the first prototype unit for the Coast Guard’s polar security cutter at Bollinger Shipyard in 2023. (Ronald Hodges)
A Collective Effort for National Security
In February, President Donald Trump called for revitalizing U.S. shipbuilding. The challenges are complex but not insurmountable.
Investment in workforce development, infrastructure, and technology is crucial. This includes not only financial investment, but also a commitment to creating a culture that values manufacturing and trade skills. Policies that ensure stable funding and protect domestic capabilities will be the foundation for success. A strategic focus on efficiency, practicality, and long-term sustainability in ship design and procurement will make for effective and enduring future fleets.
The spirit of innovation and determination that built the fleets of the past still exists. It is embodied in the skilled workers who craft our vessels, the engineers who design them, and the leaders who cut through complex policy and funding realities. They are what will propel U.S. shipbuilding beyond its crisis and ensure the United States remains the foremost maritime power, capable of defending its interests and upholding its defining principles.
1. Thomas Heinrich, Warship Builders, An Industrial History of U.S. Naval Shipbuilding, 1922–1945 (Annapolis, MD: Naval Institute Press, 2020).
2. Destiny Polster, “Bollinger Mississippi and MGCCC Celebrate First Shipfitter Boot Camp Graduation,” WLOX, 20 September 2024.
3. Workboat Staff, “Eastern Shipbuilding Launches Second Annual Coastline Initiative” Workboat News, 28 October 2024.
4. National Association of Manufacturers “Facts about Manufacturing,”
5. National Academies Consensus Study Report, The Coast Guard’s Next Decade: An Assessment of Emerging Challenges and Statutory Needs, (Washington, DC: National Academies Press, 2023).
6. Maritime Administrator RADM Ann Phillips (Ret), Remarks as Prepared at Navy League of the United States Breakfast, U.S. Department of Transportation Maritime Administration, 11 April 2023.
7. Ben Bordelon, “Congress, Short-Term Funding Decisions Create Long-Term Domestic and National Security Issues,” Marine Link 33, no. 9, September 2022.
8. “Navy Frigate: Unstable Design Has Stalled Construction and Compromised Delivery Schedules” (Washington, DC: Government Accountability Office, May 2024).
9. Roger Wicker, “Why the U.S. Maritime Industry Lags China’s. Hint, It Isn’t the Jones Act,” Wall Street Journal, 5 March 2024.
