Tuesday, November 10, 2015

MARAD: US Shipbuilding Generates $37 Billion

By Mark Edward Nero

The private shipbuilding and repair industry in the US provided more than 110,000 jobs across all 50 states in 2013 and contributed more than $37 billion to the gross domestic product, according to a newly released study by the Maritime Administration.

In 2013, the US private shipbuilding and repairing industry directly provided 110,390 jobs, $9.2 billion in labor income, and $10.7 billion in gross domestic product to the national economy, according to the study, which was released the first week of November.

Including direct, indirect, and induced impacts, on a nationwide basis, total economic activity associated with the industry reached 399,420 jobs, $25.1 billion of labor income, and $37.3 billion in GDP in 2013, the document states.

The states with the highest reported levels of overall direct, indirect, and induced employment associated with the industry were Virginia, California, Mississippi, Louisiana and Texas.

There are currently 124 shipyards in the United States, spread across 26 states, that are classified as active shipbuilders. There are also more than 200 shipyards engaged in ship repairs or capable of building ships but not actively engaged in shipbuilding.

Employment in shipbuilding and repairing is concentrated in a relatively small number of coastal states, with the top five states accounting for 63 percent of all private employment in the shipbuilding and repairing industry.

“Everything that shipbuilding meant in 1789, it still means today,” US Transportation Secretary Anthony Foxx said. “In 2015, American shipbuilders ensure that our nation can build and maintain the vessels that our military needs to keep our nation secure. In 2015, American shipbuilders still provide essential commercial vessels (that) enable domestic commerce on our inland waterways and link to our domestic energy supplies.”