This paper examines the current state of the U.S. shipbuilding industry, highlighting its historical decline and the challenges it faces amidst global competition and fluctuating naval demands. Despite its economic significance, contributing substantially to jobs, labor income, and GDP through direct, indirect, and induced effects evidenced by 107,180 direct jobs and a $12.2 billion GDP contribution in 2019, the industry has received limited government stimulus. The study contrasts the U.S. situation with shipbuilding practices in leading nations like Japan, China, and Korea, where government support and large conglomerates play significant roles. Recognizing the critical importance of a robust shipbuilding base for both economic prosperity and national security, particularly for the U.S. Navy, the paper proposes leveraging Industry 4.0 technologies to revamp the sector. Specifically Three-Dimensional Laser Scanning (3DLS), Additive Manufacturing (AM), Product Life-cycle Management (PLM) and the integration of intelligent ship (i-Ship)—to revamp the U.S. shipbuilding industry. Preliminary findings suggest substantial cost savings and increased value can be achieved through the adoption of these commercially available technologies, offering a pathway to revitalize the sector, support naval modernization goals (a 335-ship fleet), and contribute to broader the U.S. economic growth. The analysis suggests that the strategic adoption of these innovative technologies offers a pathway to revitalize the U.S. shipbuilding industry, aligning it with modern manufacturing practices and bolstering its contribution to the nation’s economic and defense infrastructure. Ultimately, suggesting a pathway to rebuild America’s maritime strength and economic prosperity.
References
[1]
Office of the Chief of Naval Operations (2018) Report to Congress on the Annual Long-Range Plan for Construction of Naval Vessels for Fiscal Year 2019. Deputy Chief of Naval Operations (Warfare Systems). https://www.secnav.navy.mil/fmc/fmb/documents/19pres/longrange_ship_plan.pdf
[2]
U.S. Census Bureau (2017) Annual Survey of Manufacturers for 2018 and 2019; Service Annual Survey for 2018 and 2019; and Economic Census for 2017.
[3]
Carlucci, F.C. (1990) Annual Report to the Congress. U.S. Department of Defense. https://history.defense.gov/Portals/70/Documents/annual_reports/1990a_DoD_AR.pdf
[4]
Government Accountability Office (2013) Naval Shipbuilding: Opportunities Exist to Improve Practices Affecting Quality (Report No. GAO-14-122). U.S. Government Printing Office. https://www.gao.gov/products/GAO-14-122
[5]
Recovery Accountability and Transparency Board (2009) The Act. https://www.congress.gov/bill/111th-congress/house-bill/1/text
[6]
Bureau of Economic Analysis (BEA) (2009) Gross Domestic Product Release [Electronic Version]. Bureau of Economic Analysis.
[7]
Pace, J., Taylor, A. and Elliott, P. (2009) Obama Urges Major New Stimulus, Jobs Spending. TheNewYorkTimes, A1.
[8]
Orszag, P.R. (2009). Letter to Senate Majority Leader Harry Reid. Office of Management and Budget.
[9]
U.S. Federal Reserve Board (2009) Capacity Utilization Explanatory Notes. http://www.federalreserve.gov/Releases/g17/cap_notes.htm
[10]
Organisation for Economic Co-operation and Development (OECD) (2021) Report on China’s Shipbuilding Industry and Policies Affecting it. https://www.oecd.org/en/publications/report-on-china-s-shipbuilding-industry-and-policies-affecting-it_bb222c73-en.html
[11]
Council Working Party on Shipbuilding (2008) The Shipbuilding Industry in China. https://web-archive.oecd.org/2012-06-14/118624-42033311.pdf
[12]
European Commission (EC) (2017) Study on New Trends in Globalisation in Ship-building and Marine Supplies—Consequences for European Industrial and Trade Policy. https://op.europa.eu/en/publication-detail/-/publication/bc5fa041-bac0-11e7-a7f8-01aa75ed71a1
[13]
(2019) China: World’s Largest Shipbuilder Established. https://www.offshore-energy.biz/china-worlds-largest-shipbuilder-established
[14]
Center for Strategic International Studies (CSIS) (2020) Hidden Harbours China’s Statebacked Shipping Industry. https://reconasia.csis.org/hidden-harbors-chinas-state-backed-shipping-industry/
[15]
Tan, S.K. (2017) Race in the Shipbuilding Industry: Cases of South Korea, Japan and China. InternationalJournalofEastAsianStudies, 6, 65-81. https://doi.org/10.22452/ijeas.vol6no1.5
[16]
Organisation for Economic Co-Operation and Development (OECD) (2016) Peer Review of the Japanese Shipbuilding Industry. https://www.oecd.org/en/publications/peer-review-of-the-japanese-shipbuilding-industry_3f30a5a1-en.html
[17]
Ford, D.N. and Housel, T. (2013) Potential Cost Savings for Use of 3D Printing Combined with 3D Imaging and CPLM for Fleet Maintenance and Revitalization, Acquisition Research Program (Report No. NPS-13-126), U.S. Naval Postgraduate School. https://dair.nps.edu/handle/123456789/2585
[18]
Ford, D.N., Housel, T., Hom, S. and Mun, J. (2016) Measuring the Return on Investment and Real Option Value of Weather Sensor Bundles for Air Force Unmanned Aerial Vehicles. In: Sullivan, M., Ed., ProceedingsoftheThirteenthAnnualAcquisitionResearchSymposium, U.S. Naval Postgraduate School, 10. https://apps.dtic.mil/sti/tr/pdf/AD1016692.pdf
[19]
Housel, T., Mun, J., Carlton, B. and Jones, R. (2019) A Comparative Analysis of Advanced Methodologies to Improve the Acquisition of Information Technology in the Department of Defense for Optimal Risk Mitigation and Decision Support Systems to Avoid Cost and Schedule Overruns (Report No. NPS-AM-20-002). U.S. Naval Post-Graduate School. https://www.researchgate.net/profile/Johnathan_Mun/publication/
[20]
Housel, T.J., Mun, J., Ford, D. and Hom, S. (2015) Benchmarking Naval Shipbuilding with 3D Laser Scanning, Additive Manufacturing, and Collaborative Product Lifecycle Management (Report No. NPS-AM-15-126). U.S. Naval Postgraduate School. https://dair.nps.edu/handle/123456789/2650
[21]
Mun, J., Housel, T.J., Jones, R.D. and Carlton, B. (2019) A Comparative Analysis of Advanced Methodologies to Improve the Acquisition of Information Technology in the Department of Defense for Optimal Risk Mitigation and Decision Support Systems to Avoid Cost and Schedule Overruns. https://www.researchgate.net/publication/362301940
[22]
National Shipbuilding Research Program (2007) ASE Ship Check Data Capture Followon Project Final Report FY06 (Report No. NSRP ASE 05-01). U.S. Shipbuilding & Repair Industry. https://apps.dtic.mil/sti/tr/pdf/AD1016801.pdf
[23]
American Society for Testing & Materials (2013) Annual Book of ASTM Standards (Vol. 10.04). https://store.astm.org/products-services/astm-bos-10.04.html
Navy Metalworking Center (2015) Advanced Metalworking Solutions for Naval Systems That Go in Harm’s Way: 2015 Annual Report. Center of Excellence of the Office of Naval Research, Manufacturing Technology (ManTech) Program. https://apps.dtic.mil/dtic/tr/fulltext/u2/a623230.pdf
[26]
Grieves, M. (2009) Virtual Based Design [PowerPoint Slides]. Purdue Polytechnic Institute. https://polytechnic.purdue.edu/sites/default/files/files/IAB%20April2009%20-%20Grieves%20Virtual%20Based%20Design.pdf
[27]
SPAR 3D (2006) U.S. Navy Improves Readiness with 3D Laser Scanning. https://www.spar3d.com/news/related-new-technologies/us-navy-improves-readiness-with-3d-laser-scanning/
[28]
Weiser, M. (1991) The Computer for the 21st Century. ScientificAmerican, 265, 94-104. https://doi.org/10.1038/scientificamerican0991-94
[29]
Kagermann, H., Wahlster, W. and Helbig, J. (2013) Recommendations for Implementing the Strategie Initiative INDUSTRIE 4.0. Report Berlin: Industrie 4.0 Working Group of Acatech.
[30]
Lee, J., Kao, H. and Yang, S. (2014) Service Innovation and Smart Analytics for Industry 4.0 and Big Data Environment. ProcediaCIRP, 16, 3-8. https://doi.org/10.1016/j.procir.2014.02.001
[31]
(2015) Erschliessen der Potenziale der Anwendung von‚ Industrie 4.0‘ IM Mittelstand. https://www.mittelstand-digital.de/MD/Redaktion/DE/Publikationen/enbericht-industrie4.0-kurzfassung.pdf?__blob=publicationFile&v=1
[32]
NavSource Naval History (2019) USS Arleigh Burke (DDG-51). https://www.navsource.org/archives/05/051.htm
[33]
Martin, J. (2013) 3D Printed Rock Injector Prepped for Hot Fire Test. C|NET. https://www.cnet.com/pictures/nasas-3d-printed-rocket-parts-cut-time-and-cost-pictures/
