VIDEO: Senate hearing focuses on reviving U.S. commercial shipbuilding

Matt Paxton, president of the Shipuilders Council of America, was among tjose testifying.

How do we modernize and accelerate U.S. commercial shipbuilding while strengthening America’s broader maritime industrial base? That was the focus of a senate subcommittee hearing titled “Sea Change: Reviving Commercial Shipbuilding.”

Convened by U.S. Senator Dan Sullivan (R-Alaska), Chairman of the Senate Committee on Commerce, Science, and Transportation’s Subcommittee on Coast Guard, Maritime, and Fisheries, the hearing heard testimony from four private industry and policy experts:

Matt Paxton, president, Shipbuilders Council of America,
Jeff Vogel, vice president of legal, TOTE Services,
Dr. Salvatore Mercogliano, professor, Campbell University,
Tuuli Snow, talent acquisition & engagement manager, Snow & Company, Inc.

(You can download their prepared testimony via the links)

“Our national defense requires a robust commercial shipbuilding and repair sector to sustain our military fleet construction and maintenance, provide surge capacity in crises, and assure sealift and logistics in time of war,” Matt Paxton said in his prepared statement. ”The Navy itself has warned that the shipyard and supplier base remains fragile and could struggle to recover from another boom-bust cycle. The more we cede commercial ship construction to foreign state-backed producers, the more we hollow out the workforce, reduce competition, and raise long-term costs for defense programs.”

“The USTR’s Section 301 investigation into China’s targeting of maritime, logistics, and shipbuilding for sectoral dominance found that for nearly three decades China has executed a coordinated, non-market industrial strategy to seize market share, suppress prices, and consolidate upstream supply chains, with explicit market-share targets and sweeping five-year plans, and that these practices burden or restrict U.S. commerce. That targeting is inseparable from national security risk. Chinese state-owned or state-supported entities have amassed extraordinary capacity and influence across shipbuilding, ports, logistics platforms, and equipment. The result is a global maritime ecosystem increasingly dependent on non-market actors whose incentives are not aligned with U.S security interests.

“These dynamics carry concrete operational risks. The United States must maintain a sufficient U.S.-flag commercial fleet, a reliable tanker fleet, and a resilient domestic repair and conversion capacity. When we cannot meet these needs with U.S.-built ships and American yards, we become dependent on foreign construction, foreign dry docks, and foreign inputs.”

Paxton noted that the SCA strongly supports the SHIPS for America Act, whose lead sponsors are U.S. Senators Todd Young (R-Ind.) and Mark Kelly (D-Ariz.), but added the caveat that SCA would like to see language around domestic ship repair strengthened.

“This legislation is the right tool to turn consensus into action, providing a clear national vision with whole-of-government strategic objectives and lines of effort and providing the sustained demand signals and policy architecture our industry needs to invest in people, processes, and infrastructure,” said Paxton. It would strengthen the commercial base that undergirds our defense shipbuilding, modernize and expand critical supplier capacity, and reinforce the mariner pipeline essential to sealift.”

“Building on this committee’s demonstrated commitment to restoring American maritime
leadership, several complementary initiatives now stand poised to accelerate the revitalization of
U.S. shipbuilding,” said Vogel. :The SHIPS for America Act, S.1541, together with the forthcoming release of the Maritime Action Plan (“MAP”) in accordance with Executive Order 14629: Restoring
America’s Maritime Dominance, reflect the forward-thinking leadership that will revive U.S.
shipbuilding and usher in a new era of industrial innovation, strengthening our national defense,
driving economic growth, and reinforcing homeland security through a modern maritime industrial
base”

“As an active participant and observer of the U.S. maritime industry, I have witnessed its long decline,” said Dr. Mercogliano, “The SHIPs Act, introduced by Senators Kelly and Young, is the most significant maritime reform effort since the Merchant Marine Act of 1970. Along with measures such as the U.S. Trade Representative’s Section 301 port fees and President Trump’s Executive Order on Shipbuilding, this legislation represents a critical step toward transforming the United States from a purely naval power into a true maritime power with a revitalized commercial sector.”

“Shipping and shipbuilding are absolutely essential to the livelihood and strength of our country and economy,” said Tuuli Snow. “My request today, from all of you, is for an investment in the maritime industry. “ You download the witnesses prepared statements at the links below, but it’s well worth the time to watch the entire video of the hearing including the discussions that followed.

U.S. Senators Todd Young (R-Ind.) and Mark Kelly (D-Ariz.), lead sponsors of the SHIPS for America Act, released the following statement after the hearing.

“Today’s hearing made clear that there is growing, bipartisan momentum to rebuild American shipbuilding, which will be good for our economy and national security. This hearing is an important step in getting the SHIPS for America Act passed to revitalize our maritime and shipbuilding industries.

“We’ll keep working in Congress and with maritime leaders to pass our bill that will create good-paying jobs and counter China’s dominance over the oceans.”