Figures in the U.S. Maritime Administration’s November 2015 economic report confirm that domestic shipbuilding has been on the rise, with the majority of capital spending going toward new structures and equipment. The report says 124 shipyards are producing new ships in our country, and Administrator Jaenichen calls the Jones Act a driving force behind the industry’s resurgence.
Discovery of new domestic sources of oil and gas in recent years has stoked demand for large tankers. At the same time, domestic ocean carriers are re-fleeting, with companies such as TOTE, Crowley, Pasha and Matson bringing on a surge of new container ships and retiring older vessels over the next several years. The current schedule of new deliveries and retirements will dramatically lower the average age of the U.S. domestic fleet by 2020.
It’s good news for the U.S. economy. In addition to producing more than 1,000 new vessels annually, the shipbuilding industry employs more than 110,000 people across 26 states, accounting for more than $9 billion in labor income and nearly $11 billion in GDP. Including indirect impact, the industry supports nearly 400,000 U.S. jobs, $25 billion in labor income and $37 billion in GDP.
It’s also good news for national defense. Not only does U.S. shipbuilding provide the industrial base — infrastructure and skilled labor — for equipping the most powerful navy on Earth, it supports Jones Act carriers that also have a role.
Matt Cox, President and CEO, Matson