Maritime (Formerly Maritime Domain and Shipbuilding) –
Developed by a multidisciplinary Seminar of twelve students, including senior officers from a variety of military services as well as career government civilians, this report constitutes a collective effort to evaluate and provide recommendations for the U.S. maritime industry. Supporting the analysis are the Seminar’s combined professional expertise as well as insights gathered from guest speakers and field studies at various U.S. and international shipbuilders and supporting firms. The Seminar's comprehensive analysis aims to address the critical challenges faced by the U.S. maritime industry and propose strategic recommendations to enhance its global competitiveness and national security role.
The U.S. maritime industry is currently unable to meet the strategic demands of national security in three primary areas: (1) the affordability and timely delivery of capable ships, (2) the capacity to escalate production in response to contingencies, and (3) the resilience to sustain operations amid international shocks. These deficiencies stem from a range of systemic issues within the industry, including an aging infrastructure, a shortage of skilled labor, over-reliance on outdated manufacturing paradigms, and restrictive sourcing policies. Supported by Porter’s Diamond analytical model, the Seminar’s investigation reveals that the U.S. maritime industry, while historically robust, has contracted significantly due to globalization, de-industrialization, and consolidation within the defense sector. The industry is predominantly defense-oriented, with 99 percent of its output serving the U.S. government. This disparity has abetted a lack of competitiveness in commercial shipbuilding, which is generally preserved only through protectionist policies.
Key issues highlighted include a severe labor shortage, particularly in skilled trades, which is a society-wide problem affecting all industries. The industry also suffers from a consolidated supplier base, which limits competition and innovation. This is further complicated by 'Buy American' policies that simultaneously support domestic industries but restrict the sourcing of essential materials to manufacturers, leading to increased costs and delays. Finally, most shipbuilders possess an aging infrastructure of high-capital facilities and processes, which frustrates efforts to modernize and innovate.
In response to these challenges, the Seminar has proposed several policy recommendations aimed at revitalizing the U.S. maritime industry. Among dozens of potentially viable options, these were selected based on their perceived potential for payoff as well as their mutual compatibility as part of a coordinated plan. The recommendations are broadly framed as two “lines of effort,” associated with the commercial maritime industry and U.S. allies and partners respectively. While these recommendations are binned together for efficiency of presentation, they all work together and each would be beneficial if implemented independently.
The problems of the U.S. maritime industry are complex and will require substantial effort and resourcing to overcome. There is no cure-all waiting to be discovered, but there are available options that can make a difference with strategic impact. By addressing the challenges described in this report, particularly as suggested in the policy recommendations, the U.S. can place its maritime industry on a competitive footing to not only meet the demands of national security but also to strengthen the U.S.’s position as a global standard-bearer in maritime affairs.
Read the report →