JUNE 20, 2013 — The U.S. Maritime Administration (MARAD) has released a report on the U.S. shipbuilding and repair industry that shows that nation's shipyards support $36 billion in gross domestic product.
The report notes that although most shipbuilders are located in coastal areas, the direct and indirect economic benefits reach all 50 states. In 2011, the nation's more than 300 shipyards directly provided more than 107,000 jobs, $7.9 billion in labor income to the national economy and contributed $9.8 billion in Gross Domestic Product (GDP). In addition, the average income for these industry jobs, $73,000, is 45 percent higher than the national average. On a nationwide basis, including direct, indirect, and induced impacts, the industry supported 402,010 jobs, $23.9 billion of labor income and $36 billion in GDP.
More than 107,000 people work in the nation's private shipyard building and repairing America's military and commercial fleets, according to a report released today by the U.S. Maritime Administration (MARAD). With shipyard-related jobs in every state in the union, workers in this sector earn about $8 billion and produce $9.8 billion worth of goods and services each year, the report found.
The report, entitled "Economic Importance of U.S. the Shipbuilding and Repairing Industry," considered the economic impact of the private shipbuilding and repair sector as a whole, including shipyards and industry suppliers, along with multiplier effects such as revenue at small businesses serving maritime workers and their families. All told, the report found, the industry supports more than 400,000 jobs across the country and generates $23.9 billion in income and $36 billion worth of goods and services each year.
"The economic impact of shipbuilding and repair extends beyond our coasts, the Great Lakes and inland waterways," said Frank Foti, chairman of the Shipbuilders Council of America (SCA). "Shipyard work supports good paying jobs for skilled industrial craftspeople in all 50 states."
The report found that jobs in the shipyard industry paid $73,630 on average in 2011. That's 45 percent more than the $50,786 national average for the private sector economy.
These jobs have a big effect on the wider economy, notes SCA. According to the study, each job in the private shipbuilding and repairing industry supports to another 2.7 jobs nationally. Each dollar of labor income in the shipyard sector leads to another $2.03 in labor income in other parts of the economy, and each dollar worth of goods and services leads to another $2.66 in the wider economy. In addition, men and women trained in America's shipyard often go on to own local businesses in skilled trades, supporting their communities.
Matthew Paxton, SCA president, added "MARAD's report clearly demonstrates how this industry is vital to both our national and economic security. SCA would like to thank MARAD for this important educational study."
Read the report HERE