Growth Likely on the Horizon for America’s Shipyards in 2nd Trump Administration
The notable uptick in shipyard-related legal and regulatory work during the Biden Administration is expected to exponentially increase during Trump’s second administration.
Once a thriving sector with over 300 American shipyards in the early 1980s, United States shipbuilding has shrunk to roughly 20 private and public shipyards through closings and consolidations today. Those shipyards are teeming with orderbooks for U.S., government and private sector work. This shows that the needs justify revisiting the shipyard space strategically on the government level. Growth in this area favorably impacts national security and economic stability goals.
“Rebuilding America’s maritime base and modernizing the industry is essential for not only maintaining a robust and capable U.S. Navy, but also for supporting a wide range of commercial and civilian vessels necessary for global trade, supply chains, economic stability and renewable energy projects, such as offshore wind farms,” stated Holland & Knight co-authorsAllison J. Luzwick and Christopher R. Nolan, associate and partner of the firm respectively. “Shipyards and shipbuilding lie at the intersection of two of President-Elect Donald Trump’s campaign promises: increasing national security and rebuilding America’s industrial base. A continued focus on these promises, combined with the Biden Administration’s recent emphasis on private sector partnerships, will make possible a boon for existing shipyard modernization and new shipyards in the coming years.”
According to Holland & Knight, China currently dominates the global shipbuilding market, attracting 59 percent of new shipbuilding orders in 2023, which is double that of its closest competitor, South Korea. In contrast, the U.S. controls a mere 0.13 percent of the market. This disparity raises grave concerns over China’s ability to control shipbuilding prices, the global trade of essential goods and the provision of warships for key U.S. allies.
Then-presidential candidate Trump highlighted this issue in his 2016 campaign, with his first administration subsequently making it a discussion point, albeit with congressional headwinds. In March 2020, administration budget cuts reduced new ship construction by 20 percent. Yet, in December 2020, the administration unveiled “Battle Force 2045,” a project aimed at boosting the Navy’s fleet capacity and capability through a plan that extend well beyond the first Trump Administration. This plan recognized the maritime industrial base’s importance and called for targeted investments in shipyards.
