OPINION:
A major national and economic security initiative and a priority of President Trump is working its way through Congress. Though the bill has substantial bipartisan support, Republicans and Democrats in the House and the Senate have not shown sufficient urgency in making it law.
The initiative is the SHIPS for America Act, and it is must-pass legislation. It would provide financing mechanisms and loosen regulations on construction to incentivize the expansion of existing shipyards and the construction of massive new ones. It would provide funds for job training in relevant fields such as welding and pipe fitting. Ultimately, it would ensure that the Navy can build the ships it needs to defeat any foreign adversary, ensure Americans can sell goods overseas, and create economic opportunity in the parts of America that Democratic policies have hammered.
Mr. Trump had a reason to advocate for American shipbuilding in his first address to a joint session of Congress in his second term. It is frustrating that, as of this writing, more Democrats than Republicans are co-sponsoring the bill.
To be fair, neither Democrats nor Republicans oppose the bill outright. Rather, both sides need to prioritize it. After all, the bill addresses many issues central to Mr. Trump’s agenda. First and foremost is the strength of the U.S. Navy. When I was acting undersecretary of the Navy in Mr. Trump’s first administration, we developed a strategy for a 355-ship Navy, but reaching that figure would be an immense challenge. Our shipbuilding industrial base lacks the capacity, with the number of large and midsize shipyards and the trained workforce, to produce ships fast enough to get to 355 ships within my lifetime. America has only 0.1% of the world’s shipbuilding capacity.
China, on the other hand, has 53% of it. Its large, advanced shipyards produce ships more quickly than ours. Unlike us, China takes advantage of economies of scale that lower the per-unit price. The upshot is we will struggle to deter or defeat the Chinese Communist Party’s aggression if its navy can grow faster than ours and if it has more ships than we do. It could become more lethal at sea.
Passing SHIPS for America would let us build the shipyards to keep pace.
Securing America’s interests overseas is clearly part of the “America First” agenda, but so is protecting America’s economic prosperity. For instance, the world wants what America builds and grows. We’re the world’s largest agricultural exporter, a major energy exporter and a leader in exporting cars, machinery and numerous other materials. Americans export more than $2 trillion worth of goods and services annually.
China’s shipbuilding strength puts it all at risk. The CCP could play hardball and force international companies to choose between carrying goods on its ships and carrying U.S. exports. Most companies would choose to have Chinese ships carry their goods because, otherwise, they would have no way to get to their customers.
If America had its own shipbuilding capacity, however, China would lose that leverage. International companies can simply use American ships instead.
Finally, we must remain focused on how free trade and environmental regulation have left places such as the Great Lakes region and the Gulf Coast a shell of their former selves. Our trade deficit stands at more than $1 trillion as the North American Free Trade Agreement and other globalist policies have walloped American manufacturing.
Adding insult to injury, Democrats’ National Environmental Policy Act regulations make large construction projects, such as shipyards, time-consuming and expensive. If I want to build a factory in Wisconsin, I’d better have millions of dollars to pay attorneys and the patience to wait five years to break ground. It’s no surprise we struggle to compete.
SHIPS for America would fix much of that. It would alleviate NEPA rules for shipyards and provide large-scale job training for electricians, welders, mariners and other relevant positions. The hundreds of thousands of jobs our shipbuilding industry will ultimately need and the related influx of economic activity would do wonders for states such as Michigan, whose unemployment rate is more than 20% higher than the national average.
More Democrats also must support SHIPS for America, but it is unacceptable that a national security-focused bill that fixes Democrats’ mistakes and serves Mr. Trump’s agenda does not yet have overwhelming Republican support. If fixing this sad fact means the White House must exert some pressure, so be it. It’s time for Republicans in Congress to step up.
• Greg Slavonic served as acting undersecretary of the U.S. Navy in the first Trump administration after a two-decade career in that military branch. He currently serves as president and CEO of Blue Water Strategies LLC.
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