The U.S. shipyards support $42.4 billion in gross domestic product
The U.S. Department of Transportation’s Maritime Administration (MARAD) announced the release of a new report finding that the Nation’s private shipyards support $42.4 billion in gross domestic product (GDP). MARAD’s new report— The Economic Importance of the U.S. Private Shipbuilding and Repairing Industry—measures the economic importance of the shipbuilding and repairing industry at the national and State levels for calendar year 2019.
In 2019, the nation’s 154 private shipyards directly provided more than 107,000 jobs and contributed $9.9 billion in labor income to the national economy. On a nationwide basis— including direct, indirect, and induced impacts—the industry supported 393,390 jobs, $28.1 billion of labor income, and $42.4 billion in GDP.
The Biden-Harris Administration recognizes the economic importance of the maritime industry and has proposed $17 billion in inland waterways, coastal ports, land ports of entry, and ferries as part of the American Jobs Plan. These investments would make our infrastructure more resilient while improving efficiency and creating new capacity to enhance freight movement in the United States.
Since 2008, the U.S. Department of Transportation has provided nearly $262.5 million in grant funding through its small shipyard grant program to nearly 300 shipyards in 32 states and territories to improve infrastructure at U.S. shipyards.
The report states the U.S. shipbuilding industry has run a trade surplus in six out of the last ten years, with a cumulative trade surplus of $7.3 billion over this period. From 2015 to 2020, U.S. shipbuilders delivered 5,024 vessels of all types including tugs and towboats, passenger vessels, commercial and fishing vessels, and oceangoing and inland barges, reaching 608 vessels in 2020. More than 60 percent of vessels delivered during the last six years have been inland tank and dry cargo barges.
There are currently 154 private shipyards in the United States, spread across 29 states and the U.S. Virgin Islands, that are classified as active shipbuilders. In addition, there are more than 300 shipyards engaged in ship repairs or capable of building ships but not actively engaged in shipbuilding. Although the majority of shipyards are located in the coastal states, active shipyards are also located on major inland waterways such as the Great Lakes, the Mississippi River, and the Ohio River.