U.S. Needs to Fill Abundant Shipping and Semiconductor Positions to Outcompete China

In a critical development for U.S. maritime dominance, workforce shortages in the shipbuilding industry are posing significant challenges, particularly in comparison to China's rapid advancements. This crisis extends beyond shipbuilding, affecting the advanced semiconductor industry as well.

The decline in the U.S. share of global semiconductor manufacturing is alarming. In 1990, the U.S. accounted for 40% of the global production, a figure that has dropped to 12% in 2020. The situation is dire, with a widening gap between job openings and qualified candidates, particularly in the semiconductor sector, where a projected 33% growth by 2030 could leave 146,000 positions unfilled.

The crisis is not limited to entry-level positions. The need is for experienced shipfitters ready to step up as foremen and boost the talent pool for hundreds of major suppliers. The issue is so pressing that the focus has shifted towards the "nation as a shipyard" approach, combining investment and tapping into new labor pools to make ship modules in areas where labor is abundant.

However, the solution does not lie in AI. The current crisis calls for human skills, as Navy Secretary John Phelan emphasised, stating that the focus should be on teaching people how to use their hands, not just code.

The manufacturing sector is experiencing a resurgence, with investment in new facilities doubling since 2022. Production at one advanced Linthicum, Maryland, foundry alone is expected to quadruple by 2030, if they can hire the necessary workforce.

The manufacturing sector's workforce decline, a result of decades of globalism, has put U.S. national security and economic dominance at risk. The sector has been hit hard by COVID-19, with almost half of U.S. states still having lower manufacturing totals than 2019.

To address the workforce shortages, priority must be given to pay. Wages for blue-collar workers are rising at the fastest rate in 60 years, according to former President Trump. This is a crucial step towards attracting and retaining skilled workers.

The U.S. Navy's combat ships are built in drydocks, but jobs are going unfilled. In recent years, China has made strides in naval shipbuilding, launching the latest amphibious assault ship, while the U.S. has faced challenges in meeting its shipbuilding demands.

A report warns that tariff uncertainty threatens $490 billion in U.S. manufacturing investment. The Navy's own shipyards need to hire 250,000 new workers over the next decade for maintenance, construction, and repair.

As the U.S. strives to maintain its maritime dominance and manufacturing resurgence, addressing the workforce shortages is a crucial step. The focus on pay, investment in new facilities, and a shift towards a "nation as a shipyard" approach are promising signs for the future.

U.S. Needs to Fill Abundant Shipping and Semiconductor Positions to Outcompete China