- US shipbuilding problems are decades old and raising concerns about US Navy readiness.
- Officials, naval affairs experts, and politicians believe the primary issue revolves around workers.
- Wages, working conditions, and retention are top priorities.
The American shipbuilding industry is grappling with severe problems, none perhaps more crucial than the state of the workforce, naval affairs experts said this week.
Addressing the shipbuilding industry's workforce challenges, they explained, starts with competitive wages, quality-of-life improvements, and retention of skilled employees.
At a House Armed Service Committee Seapower and Projection Forces subcommittee hearing, members and witnesses talked about some of the woes facing US shipbuilders, such as the smaller industrial base and erratic demand signals from the Navy, and how these long-standing challenges are affecting top Navy programs.
"To say this plainly, we must act now," said Sen. Trent Kelly, the subcommittee chairman.
"Whether through changes to our procurement processes, stronger industrial base investments, or cultural shifts within shipbuilding program offices," the Mississippi Republican said, "we need to make these decisions sooner rather than later."
A range of topics were discussed during the hearing, but the problems relating to shipbuilding workers were center stage.
The consensus among witnesses like Eric Labs, senior analyst for naval forces and weapons with the Congressional Budget Office, and Shelby Oakley, the director of contracting and national security acquisitions with the Government Accountability Office, was that the starting point for fixing US shipbuilding issues is investing in the workforce.
"In my view, nothing is more important than addressing the critical labor shortages that afflict all the shipbuilding and public maintenance yards," Labs said. Recruitment has been low, and retention difficult, especially in trades such as welding, ship fitters, and pipe fitters.
The primary solution brought up was higher wages. Worker pay isn't competitive enough, experts argued, especially for what can be a demanding job, meaning potential workers are opting for employment at retail outlets and other places. There's a decline in interest in manufacturing jobs and not enough investment in fixing that.
Other related problems are improving the quality of life and working conditions in the yards, cheaper housing, and more benefits. Upping automation in shipyards, as well as better worker training, too, were included.
There have been proposals put forward for better pay, as that's been a focus for industry and the Navy, but the challenges aren't easily solved. Higher wages invite entry-level workers, experts said, but then those yards must retain those skilled workers and invest in their careers.
Oakley's statement to lawmakers this week, which featured information from the GAO's study on Navy shipbuilding, said that shipyards are largely struggling to replace the loss of experienced, skilled workers with new ones.
This issue applies, too, to white-collar shipbuilders like designers, naval architects, and engineers who "can take other jobs," Ronald O'Rourke, a naval affairs analyst with the Congressional Research Service, said.
There is also overlap with maintenance and repair yards. Oakley noted that the Navy's strategy has to focus on that alongside building, as they're inseparable and face similar issues, especially with regard to labor.
Some major US shipbuilders, especially those working on top US Navy submarines and surface ships, have pointed out the differences between their workforces today and 30 years ago: they're having trouble hiring people and keeping experienced workers.
They've also spoken to the overlap between these labor issues and other problems in shipbuilding. The Navy has often had inconsistent demand signals for its programs, which leaves industry in an uncertain place for hiring and maintaining workers.
US commercial and military shipbuilding problems are a priority in Washington right now. President Donald Trump has announced plans to create a White House office dedicated to the issue, and both his pick for Navy secretary and his defense secretary have highlighted the focus on shipbuilding.
The urgency is especially felt amid China's continued shipbuilding dominance. China boasts the largest shipbuilding industry in the world, vastly overshadowing the US, with blurred lines between its commercial and military yards.
As the US continues to prioritize meeting China's rise and the state of great power competition, shipbuilding has come to the forefront as a potential problem for the American military should the US and China clash at sea.
As it stands, the Navy's plans to continue building and maintaining its fleet will come at a hefty price tag. The US Congressional Budget Office said earlier this year it expected the Navy, based on the service's 2025 shipbuilding plan, to need about $40 billion each year through 2054.
But due to infrastructure and workforce limitations, the GAO said, "none of the seven shipbuilders that construct Navy battle force ships are currently positioned to meet the Navy's ship delivery goals."
