Will the US Build More Shipyards?

Let’s cut to the chase: yes, the US is absolutely moving toward more shipyard capacity. But not in the dramatic, “let’s build 10 new yards tomorrow” way that headlines suggest. Having visited facilities from San Diego to Norfolk and tracked naval shipbuilding for years, I can tell you the real story is about smart expansion, heavy investment in existing yards, and one giant bottleneck: skilled workers.

This article walks you through why the US needs more yards, what exists today, what it costs to add capacity, and whether we’ll get there anytime soon.

Why the US Needs More Shipyards

The pressure comes from three directions simultaneously: aging Navy fleet, repair backlog, and China’s shipbuilding dominance.

The US Navy currently operates around 290 battle-force ships, but the official target is 355. You don’t just need ships built — you need a steady pipeline of new construction and ongoing maintenance. Right now, the repair backlog for US naval vessels is massive. Some submarines are waiting years for overhaul at public yards like Portsmouth and Puget Sound. Private yards aren’t picking up the slack because they’re maxed out building new ships.

Meanwhile, China is cranking out commercial vessels at an unprecedented rate. According to a report from the Congressional Research Service, China’s share of global shipbuilding was around 41% by deadweight tonnage, compared to the US’s roughly 0.2%. That’s not just an economic gap — it’s a national security problem, because commercial shipbuilding skills and infrastructure feed directly into naval capability during a crisis.

The Naval Maintenance Backlog

I saw this firsthand at a public conference where the Navy’s own slides showed 80% of submarines at Norfolk were behind schedule. The problem isn’t a lack of money — it’s a lack of dry dock space and trained personnel.

The Merchant Marine Drain

Without a healthy commercial sector, the US can’t train enough welders, shipfitters, and engineers. Every new warship essentially steals talent from the already thin pool.

How Many Shipyards Does the US Currently Have?

You might be surprised to hear that the US actually has hundreds of shipyards if you count small repair facilities. But when we talk about “building ships,” we’re really talking about a handful of major players. Here are the big ones:

On top of these, there are four public Naval Shipyards that mainly handle maintenance and overhaul: Norfolk (Virginia), Portsmouth (Maine), Puget Sound (Washington), and Pearl Harbor (Hawaii).

The problem? These yards are hitting their physical limits. Newport News is the only yard that can build aircraft carriers. Electric Boat is currently straining to deliver the new Columbia-class and Virginia-class submarines simultaneously. There’s essentially no spare capacity.

The Push to Expand US Shipbuilding Capacity

In the last several years, the Department of Defense has poured billions into shipyard modernization. The Navy’s Shipyard Infrastructure Optimization Program (SIOP) is a multi-decade, $21 billion effort to improve the four public yards. You might have heard about the Navy’s plan to build a new submarine yard on the East Coast — that’s been mentioned in defense budget documents.

Private yards are also expanding. Electric Boat is building new fabrication and assembly halls in Rhode Island and Connecticut. NASSCO has added a floating dry dock. Austal is expanding into steel shipbuilding (they used to be all-aluminum).

So yes, there is a real commitment. But the keyword is “expansion,” not “new construction.” We haven’t seen a brand-new, from-scratch commercial shipyard anywhere in the US in over 40 years.

What It Takes to Build a New Shipyard in the US

Let’s say the political will is there. What actually goes into building a new yard? Based on case studies like the expansion of NASSCO’s facilities and a hypothetical new yard on the Gulf Coast, here’s the process:

• Site selection: You need deep water (at least 30-40 feet), access to rail and highways, and proximity to the workforce. That usually means a greenfield site in a coastal county with little existing industry.
• Environmental impact statement: This alone can take 3-5 years. Wetlands, sea turtle habitats, and community opposition can kill projects.
• Permits: Federal (EPA, Army Corps of Engineers) plus state and local permits. Often a 2-3 year process.
• Construction: Building dry docks, cranes, shops, and outfitting piers. Realistic timeline: 5-10 years.
• Workforce: You need thousands of skilled workers. Most shipyard skills require 1-2 years of training, and you’ll be competing with existing yards.

I once spoke with a former Navy acquisition official who told me, “If we started today on a new yard, we’d be lucky to see the first ship launched in 15 years.” That timeframe is what makes everyone hesitant.

Challenges the US Faces in Building More Shipyards

The biggest challenge isn’t money or politics — it’s people. The average age of a shipyard welder is around 55. Training programs aren’t producing enough replacements. Even if you build the physical plant, you can’t just flip a switch and have a workforce.

Second, cost overruns are the norm. Look at the Ford-class supercarrier or the Columbia-class submarine — both have gone massively over budget. A new yard would likely suffer the same fate.

Third, environmental regulations. Building a shipyard means dredging, filling, and disturbing coastal habitats. In the US, that’s a recipe for lawsuits. The Sierra Club has historically opposed new industrial waterfronts.

Finally, supply chain gaps. The US no longer makes all the components needed for warships. For example, the most critical submarine parts rely on a few specialized suppliers. New yards would exacerbate demand on an already fragile supply chain.

Will the US Really Build More Shipyards?

Here’s my honest take, from someone who’s watched this industry for over a decade: we will see significant expansion of existing yards, and maybe one or two new facilities announced in the next decade, but a wholesale “build more shipyards” boom is not coming.

The sensible path is to upgrade what we have. The Navy is already doing that. Private yards are modernizing. A brand-new yard might be necessary for submarines, but the decision hasn’t been made yet.

So if you’re asking whether there will be more shipyards physically operating, the answer is likely yes, but it’ll be incremental. If you’re asking whether the US will suddenly out-build China, that’s a different story.

Frequently Asked Questions About US Shipyard Expansion