U.S. Shipbuilding Industry Supports Hundreds of Thousands of Jobs, Generates Billions in Economic Activity
The U.S. Private shipbuilding and repairing industry is a significant contributor to the national economy, supporting over 400,000 jobs and generating $23.9 billion in income annually, according to a report released by the U.S. Maritime Administration (MARAD). The industry also produces $36 billion worth of goods and services each year.
The report, initially released in December 2015 and updated through 2021, details the direct, indirect, and induced economic impacts of the sector, encompassing shipyards and their extensive network of suppliers. It highlights the ripple effect of maritime employment, including revenue generated by small businesses that serve shipyard workers and their families.
More than 107,000 people are directly employed in private shipyards across the country, building and repairing both military and commercial vessels. These jobs are geographically diverse, with shipyard-related employment present in every U.S. State. Workers in this sector earned an average of $73,630 in 2011 – a figure that was 45 percent higher than the national private sector average of $50,786.
The economic impact extends far beyond direct employment. The MARAD report found that each job in the private shipbuilding and repairing industry supports an additional 2.7 jobs nationally. For every dollar of labor income generated within the shipyard sector, another $2.03 in labor income is created in other parts of the economy. Similarly, each dollar’s worth of goods and services produced leads to an additional $2.66 in economic activity elsewhere.
The industry’s impact isn’t limited to immediate economic gains. The report also notes that individuals trained in American shipyards frequently establish local businesses in skilled trades, further bolstering their communities. This suggests a long-term, sustainable contribution to local economies beyond the immediate shipyard employment.
Demand for shipbuilding is currently at a critical point. The U.S. Navy’s shipbuilding budget increased by 12.5 percent per year from fiscal year 2020 to fiscal year 2024, and its 30-year plan calls for the construction of between 290 and 340 new ships by 2053. This increased demand presents both opportunities and challenges for the American shipbuilding industry, requiring it to scale up production and maintain its competitive edge.
The economic importance of the U.S. Shipbuilding and repairing industry extends beyond national figures. The report provides a state-by-state breakdown of the industry’s economic contributions, demonstrating its widespread impact across the country. This detailed analysis underscores the vital role the industry plays in supporting local economies and providing high-quality jobs.
Recent analysis from the Congressional Budget Office focuses on the Navy’s 2025 shipbuilding plan, while the Council on Foreign Relations has published findings regarding the implications of China’s Belt and Road initiative for the United States. These developments highlight the broader geopolitical context within which the U.S. Shipbuilding industry operates, emphasizing the importance of a strong domestic shipbuilding base for national security and economic competitiveness.
