The Coalition for a Prosperous America (CPA) has released a new economic report detailing what it calls a worsening crisis for the U.S. shipbuilding industry.
The report, How to Solve America’s Shipbuilding Crisis, outlines the decline of the U.S. commercial shipbuilding base and contrasts it with the rapid rise of China’s state-subsidized maritime industry. According to the findings, the United States, once the world’s top shipbuilder in the 1970s, now ranks 19th. China, by comparison, has grown from about 5% of global shipbuilding output in 2000 to more than 50% today.
While China produces more than 1,700 large oceangoing vessels each year, U.S. shipyards build fewer than five, the report noted. However, American yards continue to deliver smaller vessels, including articulated tug-barges, ferries, and offshore service vessels, which remain essential to domestic commerce. The Jones Act fleet of more than 40,000 vessels also plays a central role in supporting jobs, trade, and supply chain resilience.
Mihir Torsekar, the report’s author and a senior economist at CPA, said U.S. shipbuilding should be treated as core industrial policy. “Every one shipbuilding job supports almost five additional jobs elsewhere in the economy. It’s time to correct the misguided policies of the past that surrendered our global leadership of this critical industry to China,” Torsekar said.
The CPA report attributes the U.S. industry’s decline in part to the elimination of federal shipbuilding subsidies in the 1980s, which left domestic yards unable to compete with foreign competitors. Jon Toomey, CPA’s president, said the collapse of subsidies caused “the U.S. commercial shipbuilding market to collapse virtually overnight.”
The report emphasizes that China’s maritime dominance is not limited to shipbuilding capacity. State subsidies and industrial policies have supported consolidation, port development, and global supply chain control. In addition, China’s policy of integrating commercial and military shipbuilding has positioned it as both the world’s largest commercial shipbuilder and the fastest-growing naval power.
The geopolitical stakes are high, the report argues. With most U.S. military cargo shipped by sea, China’s influence over global shipping raises security risks. The opening of new Arctic routes and the demand for critical minerals further underscore the need for a robust American shipbuilding base, the report said.
The CPA report calls for a comprehensive national strategy, including:
- Strengthening and enforcing the Jones Act to ensure demand for U.S.-built vessels.
- Creating a shipbuilding industrial fund and offering tax incentives for domestic yards.
- Expanding investment in U.S. shipyard infrastructure and technology.
- Placing strategic fees and restrictions on Chinese-built maritime assets.
- Growing the U.S.-flagged fleet through cargo preference laws.
- Expanding Arctic shipping capabilities and coordinating with allies to counter unfair practices.
CPA concludes that restoring America’s shipbuilding capacity is not only an industrial and economic challenge but also a national security priority. “It is long past time to restore that proven capacity,” the report said, pointing to the need for skilled-labor jobs and a stronger domestic shipyard network to counter foreign competition.
