"Convincing workers to spend their days welding at a shipyard, when they could earn a similar amount of money working behind the counter of an air-conditioned Buc-ee's, is one of the biggest obstacles to reviving the country's lagging $37 billion shipbuilding industry. At least that's the theory of U.S. Navy Secretary John Phelan, who, during his confirmation hearing in February, said he was handed down a mandate of " shipbuilding, shipbuilding, shipbuilding " by President Donald Trump."
""I think this is really an issue of wages, to be honest, when I look at it across states," Phelan said, noting employees can earn a similar wage working at Amazon or Buc-ee's mega gas stations. When folks are aware of what else is out there to make the same income, "it's hard to get that person to want to do that job.""
Low wages in shipbuilding compete directly with retail and logistics jobs that offer similar pay and more comfortable conditions, reducing recruitment. U.S. shipbuilding contributes about $37.3 billion to GDP and supports roughly 110,000 workers. Industry decline stems from shifting government priorities, the elimination of Reagan-era shipbuilding subsidies, and mounting competition from Asian shipbuilders. A major Chinese state-owned shipbuilder produced more tonnage in 2024 than the U.S. has produced since World War II. Recent initiatives apply business practices to reduce inefficiencies, boost capacity, and encourage competition. Younger workers' pursuit of self-fulfillment further discourages entry into blue-collar shipbuilding roles.
Read at Fortune
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