Can America Outbuild China? The Case for Advanced Automation in U.S. Shipbuilding

As global tensions rise and maritime dominance becomes a strategic imperative, the question of how the United States can effectively compete with China in shipbuilding has taken center stage. At present, China produces over 45% of the world’s new vessels, powered by a vast industrial network and a labor-intensive production model that spans hundreds of shipyards. By contrast, the U.S. accounts for less than 1% of global ship output—a figure that highlights both a challenge and an opportunity.

To bridge this staggering gap, the U.S. must embrace a different formula for success: advanced automation, intelligent manufacturing, and high-value integration. In short, America can’t—and shouldn’t—try to outbuild China using China’s methods. It must use its technological edge to reimagine the way ships are built.

The Labor Divide: China’s Workforce vs. America’s Machines

China’s dominance stems in large part from the scale and cost of its workforce. Shipyards such as Jiangnan, Dalian, and Hudong employ thousands of welders, fabricators, and technicians working in parallel across massive dockyards. These workers are supported by favorable financing, state subsidies, and vertically integrated supply chains that stretch across the country.

In contrast, the U.S. faces a severe labor shortage in maritime manufacturing. Decades of outsourcing, wage stagnation, and limited vocational pipelines have shrunk the skilled labor pool. A recent GAO report notes that U.S. shipyards struggle to fill critical roles in welding, pipefitting, and naval architecture. The average shipyard welder in the U.S. is now over 50 years old.

Rather than trying to rebuild a massive blue-collar workforce from scratch, the U.S. can leapfrog the traditional model by accelerating automation and digitization.

Where China has labor, the U.S. has code.

Robotic welding arms, automated guided vehicles (AGVs), AI-driven design software, and digital twins are transforming how vessels can be built. American startups and defense contractors are increasingly investing in lights-out manufacturing—automated production systems that can operate 24/7 with minimal human oversight. This approach can reduce labor requirements by over 60% while increasing precision and reducing error margins.

Examples include:- Saronic’s unmanned surface vessels being built in Louisiana using modular, automation-friendly designs.- Philly Shipyard’s use of digital twins to reduce redesign costs and construction times.- HII’s investments in robotic panel lines and AI-enhanced quality assurance in its Newport News facility.

This shift to intelligent shipbuilding not only reduces dependence on scarce labor but also makes small- and medium-scale U.S. yards more competitive on quality, safety, and schedule adherence.

Infrastructure and Policy: Matching Innovation with Support

Advanced automation will only succeed if it is supported by coordinated federal and private investment. President Trump’s recent executive order, “Restoring America’s Maritime Dominance,” lays the groundwork by calling for a national action plan. The plan envisions new public-private shipyard hubs, defense-commercial technology sharing, and fast-track permitting for maritime infrastructure.

But to compete, the U.S. must:- Streamline export financing for commercial builds, especially dual-use vessels (e.g., Jones Act-compliant LNG tankers).- Incentivize AI and robotics investment in shipyards through tax credits.- Rebuild maritime education pipelines with a focus on engineering, mechatronics, and naval architecture.

Strategic Advantages of a Tech-Driven Shipbuilding Base

America’s approach doesn’t need to match China in volume. It only needs to outclass it in strategic output. A U.S. shipbuilding base built around automation and resilience can deliver:- Faster build times for military and sealift vessels.- Dual-use designs for commercial fleets that support both trade and national security.- Secure, traceable supply chains free from foreign dependence.

This model also positions the U.S. as a supplier of high-tech shipbuilding components—AI modules, digital design platforms, and automation tools—exportable to allies and partners seeking to modernize their own maritime industries.

Competing Without Copying

The path to maritime revival does not lie in trying to rebuild the 20th century. It lies in embracing the 21st.

China’s shipbuilding strength is its workforce. America’s is its innovation. By building smarter—not just bigger—the U.S. can reclaim leadership in strategic shipbuilding, strengthen its defense industrial base, and reassert its place in global maritime commerce.

In the race for the seas, America doesn’t need more hands—it needs more intelligence.