At the end of World War II, the United States had nearly 1,000 shipyards building and maintaining vessels for both military and commercial use. But now, according to US Congressman Michael Waltz, that number has dropped to just about 20. This sharp decline has raised alarms about the state of the US shipbuilding industry, which was once a key part of America’s defense and economic strength.
During a virtual discussion with the Center for Strategic and International Studies (CSIS), Waltz explained how the US shipbuilding industry has shrunk dramatically over the years. In the early 1980s, there were still over 300 shipyards, which was already a big drop from World War II. But the last few decades have been especially tough for the industry, and now, with only 20 shipyards left, the US is struggling to keep up.
What makes this situation more troubling is that while the US shipbuilding industry is shrinking, China’s is booming. Just this year, China ordered over 1,500 new ships, while the US only received five. This stark difference highlights how much the global balance in shipbuilding has shifted. China now commands about 40% of the world’s commercial shipbuilding output, while the US is responsible for less than 1%.
© Photo : United Nations Conference on Trade and Development
The number of commercial ships sailing under the US flag has also plummeted. After World War II, around 10,000 US-flagged merchant ships were in operation. Today, that number has dropped to just 80. Senator Mark Kelly, who also spoke at the event, emphasized the importance of these vessels for national security, especially as tensions with China rise.
© Photo : U.S. Navy
The situation is so dire that the US is turning to its allies for help. South Korea, one of the world’s leading shipbuilders, recently stepped in when one of its top companies, Hanwha Ocean, bought a former naval shipyard in Philadelphia. Hanwha also secured a contract to repair and maintain US Navy ships, signaling that the US is relying on foreign expertise to keep its fleet in working condition.
But the gap between the US and China in terms of shipbuilding is vast, and it won’t be easy to close. A report from US Naval Intelligence shows that China’s shipbuilding capacity is more than 200 times that of the US. China has over 5,000 oceangoing commercial ships, while the US has only 177. Even with support from allies like South Korea and Japan, it could take the US years to catch up.
The decline in the US shipbuilding industry comes at a critical time, as the US Navy has unveiled its new plan to prepare for a potential military conflict with China by 2027. Admiral Lisa Franchetti, the US Chief of Naval Operations, has described China as a “pacing challenge” and a serious threat to US military dominance. The Navy’s plan includes fixing the current shipyard delays, streamlining maintenance, and improving the infrastructure needed to support warships, submarines, and aircraft.
The question remains: can the US rebuild its shipbuilding industry in time to meet these growing challenges, or will it be forced to rely on its allies and hope for the best as China’s maritime power continues to grow?
