A recent comprehensive assessment by BRS Group has underscored the significant challenges facing the United States as it attempts to revitalize its domestic shipbuilding sector. According to the broker’s shipping markets annual review, the U.S. currently holds less than 1% of the global commercial shipbuilding market share, ranking alongside Vietnam in terms of industrial competitiveness.
The Global Competitive Landscape
BRS Group evaluated seven major shipbuilding regions using ten rigorous criteria, including labor availability, capital access, supply chain depth, and design capabilities. The results highlight a staggering disparity between the West and the East:
- China: 96/100 (Leading the global market)
- South Korea: 90/100
- Japan: 80/100
- Europe: 76/100
- India: 56/100
- United States & Vietnam: 46/100
Structural Barriers to Growth
The report suggests that the gap between U.S. and Asian shipbuilding is not merely a matter of policy, but of fundamental industrial infrastructure. U.S. newbuilding prices are currently estimated to be three to five times higher than those in China, South Korea, or Japan. Furthermore, U.S. yards often lack ready-made designs, leading to prolonged delivery timelines that stretch years beyond international standards.
Labor and Supply Chain Deficits
One of the most acute issues is the shortage of skilled labor. While major Asian shipbuilders employ hundreds of specialized engineers, U.S. yards struggle to maintain an equivalent depth of expertise. BRS notes that building a robust domestic base of subcontractors and engineers could take between 10 to 20 years, based on historical trajectories seen in Japan and Korea.
Additionally, the lack of a short, domestic supply chain compounds the issue, affecting cost control and schedule reliability. This "chicken-and-egg" problem requires sustained, high-volume shipbuilding to resolve—something the U.S. has lacked for decades.
The Impact of the Jones Act
The BRS review also addresses the Jones Act, the century-old legislation governing domestic maritime trade. While intended to protect the industry, the report suggests the act has restricted competition and failed to produce a major global shipowner or builder in the U.S. market.
A Path Toward Reindustrialization?
Despite the sobering data, there is a silver lining. The U.S. government’s National Security Strategy and the recently released Maritime Action Plan aim to treat shipbuilding with the same urgency as semiconductor manufacturing. By leveraging economic ties with Korean and Japanese shipbuilders and investing in robotics and AI to offset labor costs, the U.S. hopes to bridge the industrial chasm and reclaim its maritime sovereignty.