By VOICES Staff.
For the first time in decades, the men and women of American Maritime are in the spotlight, receiving Presidential and Congressional support, attention that industry veterans say was “really unimaginable until really just two or three years ago.”
At a recent Hudson Institute panel discussion, leading voices in American shipbuilding came together to discuss the transformative changes underway and the critical importance of the Trump Administration and Congress’s support of the maritime industry. Their message was clear: this is America’s moment to rebuild maritime dominance globally, built on the foundation the Jones Act has provided.
Throughout the discussion, one phrase echoed repeatedly: “demand signal.” As Mike Smith from Hanwha Defense Systems, a Korean conglomerate that has invested in a Jones Act shipyard, explained, “What does a stable demand signal do? Well, it gives suppliers the confidence to invest in technology and innovation, to invest capital in new facilities or expand what they have, to hire without feeling like they’re creating an overhang.”
This isn’t just theory — it’s proven practice. Mike Smith shared how Hanwha Philly Shipyard has grown from 1,200 people to over 1,800 in just eight months, drawing workers not from other shipyards, but from the tri-state area’s construction and production industries.
“The reason why they’re coming,” Smith noted, “is because they see a future in shipbuilding.”
Matt Paxton of the Shipbuilders Council of America reinforced this point with a powerful statistic: in 2024, American shipyards were building 925 vessels across all sectors. “We are an industrial base that’s here,” Paxton emphasized. “We are an industrial base that wants to continue to grow.”
One of the most encouraging aspects of the current maritime revival is workforce development.
Scott Sloan from StratasCorp Technologies emphasized the need to reach young Americans: “We’ve got to get into youth education programs … there are some folks who are going to be really good at STEM. There are some folks who are going to be really good at welding and pipe fitting.”
Paxton added an important perspective: “In certain market segments, we have workforce challenges for sure… But in other places, I don’t think there’s a workforce problem. I think there’s a contract problem.”
When shipyards have work and a clear future, “it’s funny how they can find that workforce.”
A notable moment in the discussion came when the panel was directly challenged by a foreign journalist about the Jones Act—should America simply abolish it?
“Fundamentally, no,” said Paxton. “It’s such a fraught proposition. Look at a time when we’re talking about border security, the Jones Act is quintessential security. It’s a national security, economic security, homeland security issue.”
Paxton’s defense went deeper: “The idea that we would do something like that is to say ‘we don’t care about industrial policy.’ ‘We don’t care about having a shipbuilding industry here in the United States.’”
Mike Smith from Hanwha was equally direct: “Philly Shipyard wouldn’t be here” if not for the Jones Act. Without that, large ocean-going vessels like the National Security Multi-Mission Vessels, the Acaidia and Matson’s three Aloha-class containerships, and the jobs they create across the supply chain, would not exist.
Paxton offered a compelling analogy that drives home the Jones Act’s importance: “No one would disagree that we have a 200-mile exclusive economic zone around our country. That’s on our continental shelf; that’s our sovereign right to be there. We would never disband the 200-mile exclusive economic zone around our country. Why would we get rid of the Jones Act? It’s fundamentally a flawed proposition.”
The Jones Act also enables the broader maritime ecosystem that supports national defense. Earlier in the event, Austin Gray of Blue Water Autonomy and Coast Guard Captain Christian Lee (Ret.) highlighted that small commercial shipyards were playing a major role in autonomous vessels for the United States Navy.
Paxton called back to the conversation and highlighted, “We have mid-tier and smaller tier yards that can now play in this game because we’re here,” and build next-generation autonomous vessels for our military.
The panel also didn’t shy away from discussing the challenge China poses to American maritime interests. With China holding a 74% share of commercial ship orders last year—up from 43% just five years ago—the threat is clear and growing.
However, the panelists also highlighted opportunities with allied nations. The recent trade agreements with South Korea, which could bring $350 billion in investment, including significant shipbuilding components, represent a model for strengthening American maritime capabilities through strategic partnerships.
As Smith noted about Korean investment: “What does the US get? They get a great deal of investment that’s going to spur growth in the US,” with economic multiplier effects of 4x to 8x throughout the economy.
But this investment can only come thanks to the Jones Act.
Otherwise, the effort would be a pink slip for American pipefitters, welders, and shipyard workers and outsource shipbuilding to foreign shipyards.
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