Summary of "We're Gonna Need a Bigger Boat-Building Industry"
The Indicator from Planet Money
Release Date: June 26, 2025

Introduction: Decline of American Shipbuilding

In the episode titled "We're Gonna Need a Bigger Boat-Building Industry," hosted by NPR's The Indicator from Planet Money, presenters Darian Woods and Waylon Wong delve into the significant decline of the United States' shipbuilding industry. Highlighting the stark contrast between the dwindling American ship production and China's booming shipbuilding sector, the episode examines the historical, economic, and geopolitical factors contributing to this shift and explores legislative efforts aimed at revitalizing U.S. shipbuilding.

Historical Context: From Industrial Hub to Shipyard Shutdown

The episode opens with a visit to the Brooklyn Navy Yard, once a bustling center for ship production, notably manufacturing battleships like the USS Tennessee during World War I and the USS Missouri during World War II. Host Waylon Wong sets the scene:

"On a recent afternoon, we paid a visit to the Brooklyn Navy Yard in New York... Like one company that makes scenery for theaters, this campus has always been a hub for industrial activity." [00:12]

Darian Woods adds historical perspective:

"It was the shipyard that produced battleships... It shut down in the 1960s." [00:32]

The decline didn't occur in isolation; post-Cold War reductions nationwide left the U.S. constructing fewer than five large ocean-going ships annually by 2024, while China's orders surged to approximately 3,000 ships that same year [00:49]. This imbalance has raised alarms among lawmakers about national security and economic stability.

Intertwined Commercial and Military Shipbuilding

The discussion emphasizes the deep interconnection between commercial and military shipbuilding globally. Darian Woods explains:

"When we talk about shipbuilding, we're usually talking about both commercial and military ships... For example, in the Middle East, American naval ships protect oil tankers from threats like Iran." [03:04]

Waylon Wong traces this relationship to Captain Alfred Thayer Mahan, a 19th-century naval strategist who advocated for a powerful navy to secure international trade routes, thereby bolstering American economic interests. Naval expert Emma Salisbury from the Council on Geostrategy elaborates:

"One of the principal tasks of a navy is to protect global shipping lanes and the freedom of navigation, to deal with pirates and bandits." [03:57]

The Jones Act: Intentions and Unintended Consequences

The Jones Act of 1920 is a focal point in understanding the current state of U.S. shipbuilding. Darian Woods explains:

"The Jones Act... says that ships traveling between US ports must be American. This means at least 75% of the crew and the ownership of the ship has to be American." [04:47]

Emma Salisbury critiques the Act's effectiveness:

"That was intended to mean that there would be a healthy commercial shipbuilding industry, but it just simply hasn't worked." [05:26]

The Jones Act inadvertently increased shipbuilding costs in the U.S., making American-built ships less competitive internationally. Post-World War II, the Act shielded U.S. shipbuilders from foreign competition, leading companies to favor land-based transport alternatives due to the higher costs of American ships [05:35].

China’s Dominance in Shipbuilding

By 2024, China emerged as the global leader in commercial shipbuilding, producing vastly more ships than the United States—over 3,000 in that year alone. Waylon Wong highlights the dependency:

"American businesses and even the US Military rely on Chinese built ships to move stuff around the world." [06:42]

Michael Waltz, then a Republican congressman from Florida and future nominee for U.S. ambassador to the United Nations, warns of the strategic vulnerabilities:

"They could turn off our entire economy." [06:54]

He emphasized that China's capability to produce one of the world's largest container ships and swiftly pivot to military vessels like aircraft carriers underscores the scale and flexibility of their shipbuilding industry [07:11].

Legislative Efforts: The Ships for America Act

In response to the declining shipbuilding sector, the Trump administration introduced the Ships for America Act, first presented the previous year, garnering bipartisan support. Darian Woods outlines the Act's objectives:

"The bill wants to revive the US Maritime industry by offering incentives and recruiting new workers... from 80 to 250 US flagged ships within the next decade." [07:32]

Emma Salisbury expresses skepticism about the feasibility:

"Building a big shipyard is a huge investment. It takes billions... the industrial capacity just isn't there because it has atrophied over the last three decades." [08:05]

She points out that constructing state-of-the-art shipyards requires extensive investment in land, workforce, and technology, challenges that the current industrial infrastructure may not readily meet [08:20].

Expert Insights and Concerns

Emma Salisbury further critiques the Ships for America Act, noting that while it builds upon the Jones Act by requiring 100% of U.S. government cargo to be carried by American-flagged ships (doubling the current requirement), it may lead to unintended consequences:

"It makes me think of the core dichotomy of the Trump administration... a push and pull between making America's economy stronger by making American business stronger, and this strong protectionist impulse." [09:19]

She warns that such protectionist measures, especially amid uncertain tariffs on crucial materials like steel, could hinder the potential shipbuilding renaissance instead of fostering growth [09:00].

Future Outlook: Policies and Strategic Moves

Despite challenges, the Trump administration is advancing policies aimed at diminishing Chinese maritime dominance. A notable measure includes initiating fees for any Chinese-built or operated commercial ships docking at American ports starting October [09:44].

Darian Woods summarizes the episode’s production credits, underscoring the collaborative effort behind the insightful analysis [09:44].

Conclusion: Navigating a Complex Future

The episode concludes by highlighting the precarious state of American shipbuilding and the ambitious yet contentious efforts to revive it. While legislative measures like the Ships for America Act aim to bolster the industry, expert opinions suggest that without substantial investment and strategic planning, the U.S. may continue to rely heavily on foreign shipbuilding, particularly from China, thereby maintaining potential vulnerabilities in both economic and national security realms.

Notable Quotes:

• Waylon Wong [00:12]:
  "On a recent afternoon, we paid a visit to the Brooklyn Navy Yard in New York... Like one company that makes scenery for theaters, this campus has always been a hub for industrial activity."

• Emma Salisbury [03:57]:
  "One of the principal tasks of a navy is to protect global shipping lanes and the freedom of navigation, to deal with pirates and bandits."

• Darian Woods [05:35]:
  "Military shipbuilding also declined as defense spending fell after the Cold War."

• Michael Waltz [06:54]:
  "They could turn off our entire economy."

• Emma Salisbury [09:19]:
  "It makes me think of the core dichotomy of the Trump administration... a push and pull between making America's economy stronger by making American business stronger, and this strong protectionist impulse."

This detailed exploration into the American shipbuilding industry's past, present, and potential future offers listeners a comprehensive understanding of the economic and strategic imperatives surrounding maritime production in the United States.