The Pentagon’s industrial base strategy aims to bolster supply chain resilience and workforce readiness, but its exploration of outsourcing U.S. shipbuilding threatens national security and sovereignty. Instead of investing in American shipyards, the military risks eroding the maritime-industrial base critical to U.S. defense readiness.
For years, U.S. shipyard leaders have urged Congress and military officials to adopt a robust industrial base policy. Without it, America risks offshoring industries vital to its maritime dominance, leaving the nation vulnerable as China aggressively expands its shipbuilding capabilities. Between 2010 and 2018, China injected $132 billion into its shipbuilding industry, effectively dominating global markets and driving out competitors.
The Case for Investing in U.S. Shipyards
America’s shipyards face regulatory burdens that drive up costs, while foreign competitors operate with far fewer restrictions. The Navy’s current acquisition strategy exacerbates the issue by fostering domestic competition instead of collaboration among U.S. shipbuilders. This approach underutilizes existing capacity, threatens workforce stability, and undermines investments made by domestic shipyards to improve efficiency.
Other nations, like Japan, Korea, and China, recognized the strategic importance of their shipbuilding industries, funneling billions into their development. In contrast, the U.S. government offers inconsistent shipbuilding plans and defers critical programs, leaving the domestic industry in a precarious position.
A Proven Model for Success
The U.S. Maritime Administration’s National Security Multi-Mission Vessel program demonstrates how leveraging commercial best practices can save billions. Administrator Ann Phillips noted this innovative approach yielded $428 million in savings per ship, offering a clear path for the Pentagon to replicate.
By maximizing throughput in U.S. shipyards, the Navy can accelerate shipbuilding and repair timelines while fostering economies of scale. This strategy not only strengthens national security but also reinforces America’s position in the global shipbuilding market.
Course Correction Is Urgent
The United States must act now to reverse the trend of outsourcing critical shipbuilding capabilities. Supporting domestic shipyards strengthens the naval fleet, creates jobs, and preserves the nation’s ability to build and maintain its own ships.
Outsourcing weakens sovereignty and national defense. The time to prioritize American shipyards and workers is now—before it’s too late.
