Outsourcing Shipbuilding: A Controversial Proposal by President-elect Donald Trump

As concerns over the United States’ shipbuilding capabilities deepen, President-elect Donald Trump has proposed an unexpected solution: outsourcing production. Frustrated with the lagging state of American shipbuilding, Trump suggested that if the U.S. cannot meet its own needs, it may have to look abroad.

A Radical Proposal

During a conversation with radio host Hugh Hewitt, Trump expressed his urgency regarding the production of ships, stating, “We’re going to do something with ships. We need ships. And we may have to go a different route than you would normally go.” He lamented the decline of U.S. shipbuilding, emphasizing that “we used to build a ship a day,” and called for a renewed focus on maritime construction.

The stark reality, as noted by Trump, is that China’s shipbuilding capabilities now far exceed those of the United States. “China’s building, from what I’m hearing, every four days, they’re knocking out a ship,” he stated. “We’re sitting back and watching, and we’ve suffered tremendously.” This assertion underscores the escalating competition in military capabilities on the global stage.

Concerns from Industry and Labor Groups

Trump’s proposal to potentially outsource shipbuilding is certain to raise eyebrows among domestic shipbuilding industries and labor groups. This proposition marks a significant deviation from his campaign promises to revive American manufacturing and impose high tariffs on global imports, particularly from China, which he proposed to tax at 60%.

Currently, the Chinese navy boasts over 370 ships and submarines, while the U.S. fleet consists of 295 vessels, including 11 aircraft carriers. According to a 2017 law, Congress mandated the Navy to maintain a fleet of at least 355 ships, highlighting the urgency of addressing the shortfall.

Future Naval Shipbuilding Plans

Trump hinted at forthcoming plans aimed at expanding the U.S. Navy’s fleet. “We’re going to be announcing some things that are going to be very good having to do with the Navy. We need ships. We have to get ships,” he assured during the interview. “And you know, everybody said, ‘Oh, we’ll build them.’ We may have to go to others, bid them out, and it’s okay to do that.”

The alarming state of American submarine capabilities has also been emphasized by military experts. Jerry Hendrix, a retired Navy captain and senior fellow at the Sagamore Institute, highlighted in an op-ed that the American submarine force is currently “unprepared to meet the current threat environment.” This lack of preparedness can be traced back to decades of inadequate decisions that have left the U.S. military in a vulnerable state.

Latest statistics indicate that the U.S. operates 68 submarines, of which only 50 fall under the “fast attack” category. In stark contrast, China has not only outperformed the U.S. in shipbuilding but controls 46.59% of the global shipbuilding market, with South Korea at 29.24% and Japan at 17.25%. The U.S. has only a meager 0.13% share, exacerbating concerns regarding national security.

Funding and Schedule Delays

In light of these challenges, Congress has authorized an annual defense budget of 5 billion, which includes .5 billion specifically for new ships and submarines. However, several key shipbuilding projects are reported to be years behind schedule due to labor shortages and management issues.

Trump specifically criticized the management of the Navy’s Constellation-class frigate program, attributing rising costs to “Biden-era” officers who were “playing around and tinkering” with the ship’s design. He recounted a deal struck by the Pentagon with the American branch of Italian shipbuilder Fincantieri to produce these ships in 2020, emphasizing that changes made to the design were counterproductive.

“They started playing around and tinkering and changing the design, and that costs,” he asserted, pointing out how modifications to width and other specifications could adversely affect speed and performance—an act Trump criticized as reflecting a lack of understanding among military leaders.

Historical Perspective: The 600-Ship Goal and Its Consequences

The history of U.S. naval shipbuilding is also fraught with challenges. When then-President Ronald Reagan took office, he set a ambitious goal of 600 ships to revitalize the Navy after the Vietnam War. Ironically, his administration halted subsidies for shipbuilding, which severely impacted the commercial market, ultimately leaving U.S. shipyards focused predominantly on military contracts.

With Trump’s latest remarks, it remains to be seen how outsourcing ship production will be interpreted by constituencies that strongly support revitalizing domestic manufacturing. The call for outsourcing, while pragmatic in the face of pressing demands, poses a complex ethical dilemma for Trump as he navigates the balance between national security interests and economic nationalism.

Conclusion

As the United States grapples with the challenges posed by a rapidly expanding Chinese navy and a strained domestic shipbuilding industry, President-elect Trump’s proposal to potentially outsource shipbuilding could mark a turning point in U.S. military strategy. While the urgency for increased naval capabilities is indisputable, the implications of outsourcing may resonate far beyond the shipyards and underscore the broader landscape of American manufacturing and security in an increasingly interconnected world.