Challenges in U.S. Naval Shipbuilding: Workforce Shortages and Budget Increases

The U.S. Navy has experienced a significant decline in its fleet, dropping from a peak of 597 warships in 1987 to just 293 battle force ships by October 1, 2025. In an effort to reverse this trend, the fiscal 2026 budget proposed the construction of 19 new ships, followed by an additional 18 battle force ships and 16 non-battle force ships in the fiscal 2027 budget. This $66 billion shipbuilding and construction budget marks the highest allocation since 1962, aiming to alleviate the strain of long deployments on the existing fleet.

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Despite the substantial financial commitment, the U.S. shipbuilding industry faces critical workforce shortages. A February 2025 report from the Government Accountability Office highlighted that all seven major shipbuilders are grappling with recruitment and retention issues, particularly in skilled trades such as welding and electrical work. The aging workforce is retiring faster than new workers can be trained, with estimates suggesting that approximately 25,000 new skilled workers will be needed annually over the next decade to meet the Navy's demands.

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To address these workforce challenges, various initiatives are underway. For instance, Baton Rouge Community College, in collaboration with ExxonMobil, has been providing no-cost training for electrical workers, pipefitters, and welders since 2012. Additionally, the April 2025 Executive Order aimed at preparing Americans for high-paying skilled trade jobs is expected to stimulate efforts to meet the demand for skilled labor. However, there remains concern that the civilian sector, particularly the burgeoning artificial intelligence industry, may compete for the same skilled workers needed in shipyards.

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Experts suggest that drawing on allied shipbuilding expertise could help mitigate the workforce crisis. A recent study by the Center for Maritime Strategy emphasized the importance of learning from America's seafaring allies to restore U.S. naval capabilities. The investment by Hanwha in the Philadelphia shipyard, which has increased its workforce to 2,000 and is currently training 150 new apprentices, serves as a promising example of how collaboration can enhance shipbuilding capacity.

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Dov S. Zakheim, a senior adviser at the Center for Strategic and International Studies, has indicated that the Navy must not continue to manage a program that is consistently over budget and delayed due to workforce issues. He advocates for the upcoming fiscal 2027 budget to include significant funding for training programs tailored to the needs of shipyards, as well as increased cooperation with foreign shipbuilders. Such measures are deemed essential for ensuring that the recent budget increases translate into timely and efficient ship deliveries, thereby supporting the Navy's operational requirements across global waters.

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• “All seven shipbuilders face workforce limitations — such as problems with recruitment, retention, or skill level — that affect their ability to meet the Navy’s new ship delivery goals. … The skilled workforce in the U.S. — such as for welding and electrical work — is aging and retiring, and fewer new workers are learning these skills to replace retiring workers.” — Government Accountability Office Report

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• “America’s seafaring allies serv[e] as a source of best practices and lessons learned which can inform efforts to restore American seapower.” — Center for Maritime Strategy Study

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• “The Navy cannot continue to oversee a program that is chronically overbudget and behind schedule due largely to the inability of shipyards to retain and attract the workforce they need.” — Dov S. Zakheim, Senior Adviser, Center for Strategic and International Studies

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