President Donald Trump’s call for large-scale investment in American shipbuilding comes at a critical moment, as the industry faces mounting challenges. Demand for vessels — from icebreakers to training ships — continues to grow, while foreign competitors are pouring billions into their own shipyards. The question is whether the United States can keep pace.
Decades of problems — inconsistent funding, bureaucratic red tape, and inefficient management — have weakened US shipyards. In response, Congress and the Maritime Administration have turned to a new model for building National Security Multi-Mission Vessels (NSMV) at the Hanwha Philly Shipyard in Pennsylvania.
Instead of the government micromanaging every step and overburdening yards, a private contractor oversees construction using modern commercial practices, while the shipyard focuses on what it does best: building ships.
The results speak for themselves: training vessels are being delivered on schedule at around $300 million per ship — far below the nearly $1 billion once projected. The program has also revitalized the Pennsylvania yard, expanding its workforce from fewer than 50 employees in 2020 to more than 1,500 today, and launching a shipbuilding training school for the next generation.
Overall, US shipyards support nearly 400,000 jobs nationwide and generate more than $42 billion in GDP annually. With $48 billion in federal funding recently allocated for naval shipbuilding under Trump’s “Big Beautiful Bill,” the key question is whether Washington will stick with outdated bureaucratic models — or expand the proven VCM approach nationwide.
Meanwhile, global competitors are moving quickly: South Korea is ramping up production of LNG carriers and warships, Japan is forging international partnerships to support the energy transition, and China is consolidating its shipyards to dominate global orders.
Experts argue the path forward is clear: the US must ensure predictable demand, make long-term investments, and build a skilled workforce. Doing so will not only launch more American-built ships but also strengthen the industrial base, create jobs, and reinforce national security.
