By Nikko Forss, Executive Vice President, Design Solutions, NAPA

The U.S. is getting ready for a revival in shipbuilding. The landscape is increasingly influenced by Asia, particularly by China and South Korea, which are dominant players in commercial shipbuilding, excelling in deliveries, shipbuilding capacity, and advanced vessel designs.

According to the 2024 Clarksons Global Shipbuilding Review, last year marked the highest order intake in 17 years. In South Korea, shipyard output rose by 22%, giving the country a 28% share of the global market based on compensated gross tonnage. Meanwhile, China saw an 18% increase in output compared to 2023 and captured a 53% market share.

Although the U.S. faces a tough challenge in climbing the shipbuilding ranks, it is taking the situation seriously. Two important policy initiatives are underway. The first is the Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act, which has bipartisan support, though it has not yet become law. The second initiative is an executive order from President Trump titled “Restoring America’s Maritime Dominance.” This order calls for a comprehensive Maritime Action Plan that was due by November 5, without delay. The plan aims to enhance the maritime industrial base, covering shipbuilding, repairs, and components.

The plan emphasizes the importance of having a skilled and well-supported domestic maritime workforce. It proposes a Maritime Security Trust Fund, suggests reforms in the acquisition process, explores the concept of “maritime prosperity zones,” improves collection of harbor maintenance fees, enhances mariner training, and aims to modernize the U.S. Merchant Marine Academy.

The U.S. doesn't have to tackle this challenge alone and can benefit from collaboration with leaders in Asian shipbuilding. During President Trump’s recent visit to South Korea, the country's shipbuilding leaders announced a $150 billion investment in U.S. shipbuilding. HD Hyundai Heavy Industries has partnered with Huntington Ingalls Industries to construct auxiliary ships for the U.S. Navy and is looking to expand its involvement in U.S. shipbuilding further.

South Korea’s winning formula

Partnering with South Korea is a strategic choice for the U.S. South Korea's major shipyards, like HD Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries, are recognized for their high-quality, advanced ship designs and large-scale manufacturing. U.S. officials have expressed admiration for the digitalization and efficiency found in South Korean shipyards following visits to them.

This success can be attributed to decades of strong partnerships with global industry players and significant investments in digital technology. South Korean shipbuilders have incorporated established best practices and technologies, refining them through ongoing innovation, standardization, and integration. This has led to the development of world-leading industrial systems, enabling the delivery of shipbuilding projects on time, within budget, and at scale.

Many shipyards are aiming to create a ‘digital shipyard’. Central to this concept is the use of digital 3D workflows and digital twins to enhance the design process from initial stages through to construction. This powerful approach creates valuable insights throughout a ship's operational life. The idea of digital continuity taps into the unrealized potential of data, particularly existing shipyard data, and the efficient use of 3D models across various disciplines.

With multiple teams from different disciplines able to work on shared models simultaneously, shipyards can improve information sharing across all participants in the design and building process. This allows naval architects and engineers to complete more design iterations quicker, reducing errors, lowering costs, and achieving higher-quality results in more complex shipbuilding projects. Additionally, optimized 3D models can expedite and facilitate classification approval processes.

Workforce training

The phrase ‘work smarter, not harder’ resonates now more than ever. As the U.S. faces a lack of access to a sufficiently trained maritime workforce, achieving efficiency is crucial, especially for smaller shipyards.

Countries like Japan and South Korea have also had trouble attracting new talent to the shipbuilding sector. In Korea, the issue became especially pronounced after the lifting of COVID restrictions when shipbuilding resumed, a situation rooted in job losses following the market downturn in 2014, which saw the workforce decrease from approximately 203,000 to about 92,000.

Digital technologies can help tackle recruitment challenges on two fronts: by minimizing redundant tasks, allowing engineers and naval architects to work more effectively, and by making the shipbuilding industry more appealing to younger generations. Furthermore, the rapid growth of artificial intelligence presents great potential to leverage data and digital solutions for enhanced efficiency and added value.

Why shipbuilding matters

There are numerous reasons why the U.S. is investing in revitalizing its shipbuilding industry, from job creation to economic growth, national security, and trade policy. With determination, progress is possible. The path forward is paved by lessons learned from South Korea, an ally of the U.S. that is a leader in the shipbuilding field.

South Korea's successful strategy revolves around the concept of a digital shipyard that emphasizes digital continuity. By leveraging data and 3D models, shipyards can enhance real-time collaboration, foster innovation, and improve efficiency. This approach has allowed South Korea to deliver shipbuilding projects on time, on budget, and at scale. The U.S. can benefit from integrating and refining these proven practices to accelerate its own shipbuilding renaissance.