The post Can America Recover From Its Shipbuilding Crisis? appeared on BitcoinEthereumNews.com. Guided-missile cruiser USS Hue City (CG 66), the German navy frigate FGS Hamburd (F220), the aircraft carrier USS Dwight D. Eisenhower (CVN 69), and the Military Sealift Command fast combat support ship USNS Bridge (T-AOE 10) during a replenishment-at-sea, Arabian Sea, March 23, 2013. Image courtesy Ryan D. McLearnon/US Navy. (Photo via Smith Collection/Gado/Getty Images). Getty Images Concerned experts, both civilian and military, have been warning for years about the dangers presented by the shocking decline in US shipbuilding capabilities, particularly in contrast to those of our rising geopolitical adversary, China. This week’s announcement by Secretary of the Navy John Phelan of the cancellation of the Constellation-class frigate-building program only added fuel to the fire. “After decades of apathy and neglect, there are no easy nor cheap solutions to getting the Navy on course and in time to deter let alone persevere in a war with China,” Captain Brent Sadler (U.S. Navy, Retired), senior research fellow at The Heritage Foundation, told me via instant messaging. “Canceling the frigate program is far from adequate as it does not address the need for more shipbuilding capacity, more firepower in the western Pacific by 2027, and a needed frigate class ship to round out a perilously unbalanced fleet.” A shipbuilding collapse The frigate program is just one of many maritime canaries in the coal mine. American shipbuilding delivered nearly 90% of global output at its high-water mark during WWII. Today it has collapsed to just 0.2% of gross tonnage—essentially nonexistent. While China builds well in excess of 1,000 oceangoing ships per year, America makes fewer than five. Sadler has been sounding the alarm about that for years, tying his beloved Navy’s needs to the equally urgent matter of commercial shipbuilding. “We haven’t really done the due diligence, the hard work and commitment of… The post Can America Recover From Its Shipbuilding Crisis? appeared on BitcoinEthereumNews.com. Guided-missile cruiser USS Hue City (CG 66), the German navy frigate FGS Hamburd (F220), the aircraft carrier USS Dwight D. Eisenhower (CVN 69), and the Military Sealift Command fast combat support ship USNS Bridge (T-AOE 10) during a replenishment-at-sea, Arabian Sea, March 23, 2013. Image courtesy Ryan D. McLearnon/US Navy. (Photo via Smith Collection/Gado/Getty Images). Getty Images Concerned experts, both civilian and military, have been warning for years about the dangers presented by the shocking decline in US shipbuilding capabilities, particularly in contrast to those of our rising geopolitical adversary, China. This week’s announcement by Secretary of the Navy John Phelan of the cancellation of the Constellation-class frigate-building program only added fuel to the fire. “After decades of apathy and neglect, there are no easy nor cheap solutions to getting the Navy on course and in time to deter let alone persevere in a war with China,” Captain Brent Sadler (U.S. Navy, Retired), senior research fellow at The Heritage Foundation, told me via instant messaging. “Canceling the frigate program is far from adequate as it does not address the need for more shipbuilding capacity, more firepower in the western Pacific by 2027, and a needed frigate class ship to round out a perilously unbalanced fleet.” A shipbuilding collapse The frigate program is just one of many maritime canaries in the coal mine. American shipbuilding delivered nearly 90% of global output at its high-water mark during WWII. Today it has collapsed to just 0.2% of gross tonnage—essentially nonexistent. While China builds well in excess of 1,000 oceangoing ships per year, America makes fewer than five. Sadler has been sounding the alarm about that for years, tying his beloved Navy’s needs to the equally urgent matter of commercial shipbuilding. “We haven’t really done the due diligence, the hard work and commitment of…

Can America Recover From Its Shipbuilding Crisis?

2025/11/29 03:34

Guided-missile cruiser USS Hue City (CG 66), the German navy frigate FGS Hamburd (F220), the aircraft carrier USS Dwight D. Eisenhower (CVN 69), and the Military Sealift Command fast combat support ship USNS Bridge (T-AOE 10) during a replenishment-at-sea, Arabian Sea, March 23, 2013. Image courtesy Ryan D. McLearnon/US Navy. (Photo via Smith Collection/Gado/Getty Images).

Getty Images

Concerned experts, both civilian and military, have been warning for years about the dangers presented by the shocking decline in US shipbuilding capabilities, particularly in contrast to those of our rising geopolitical adversary, China. This week’s announcement by Secretary of the Navy John Phelan of the cancellation of the Constellation-class frigate-building program only added fuel to the fire.

“After decades of apathy and neglect, there are no easy nor cheap solutions to getting the Navy on course and in time to deter let alone persevere in a war with China,” Captain Brent Sadler (U.S. Navy, Retired), senior research fellow at The Heritage Foundation, told me via instant messaging. “Canceling the frigate program is far from adequate as it does not address the need for more shipbuilding capacity, more firepower in the western Pacific by 2027, and a needed frigate class ship to round out a perilously unbalanced fleet.”

A shipbuilding collapse

The frigate program is just one of many maritime canaries in the coal mine. American shipbuilding delivered nearly 90% of global output at its high-water mark during WWII. Today it has collapsed to just 0.2% of gross tonnage—essentially nonexistent. While China builds well in excess of 1,000 oceangoing ships per year, America makes fewer than five.

Sadler has been sounding the alarm about that for years, tying his beloved Navy’s needs to the equally urgent matter of commercial shipbuilding.

“We haven’t really done the due diligence, the hard work and commitment of resources to keep and maintain the Navy that we need,” he said during his recent appearance on my Manufacturing Talks web show and podcast. “And we’ve been for too long getting by on the backs of our sailors, many times—extra work, extra maintenance, extra everything on their backs. And this whole thing, the whole system, is starting to break.”

Sadler dove into the dire numbers for the Navy in a recent article for the U.S. Naval Institute. “Today, the U.S. fleet numbers 296 battle force ships, but it should have been at 321 to stay on pace with earlier plans to reach 355 ships by 2034. That 355-ship goal was based on a 2016 force structure assessment and has since been codified into law by Congress. What is most remarkable about the assessment is that, originally, the fleet need in 2016 was 459 ships and that was only lowered to 355 for fiscal reasons.”

However, he argued on my program that even the 2016 goal was far short of what’s really needed. “We know that we’re going to need more ships,” he said. “There’s no way around it for the size of the threat from China, and then add in the Russians moving around the world, and then understanding where, politically, the Navy is going to be called on to act, without putting at risk that deterring the Chinese, you’re going to need about 575 ships.”

Desperate needs

In a separate paper for Heritage earlier this year, Sadler laid out the details of how America can get from here to there, centered around legislation such as the SHIPS for America Act of 2025, and including such essentials as:

  • Funding American shipbuilding (with a goal of 1,120-1,300 large U.S. commercial vessels vs. 187 today)
  • Incentivizing American maritime investment for ports and shipping
  • Developing the shipyard worker, merchant mariner and naval architect workforce of the future
  • Deregulation and creation of maritime investment zones

Sadler also sees a big role for our nation’s allies.

“We’re going to have to leverage our overseas partners, our allies—Japan, South Korea—trusted, signed defense-treaty partners with a lot of common national interest,” he said. “That’s important, and they’re making strategic investments here to do that, but they’ve got ships. So do the Greeks in LNG.”

Good news in American shipbuilding is currently scant. But there are green shoots to build from toward Sadler’s goals. One important question to answer is where investment can go where we can move quickly to fulfill the country’s needs.

Port opportunities

Wind turbine parts are loaded onto a cargo ship at the Port of Brownsville in Brownsville, Texas, US, on Friday, Feb. 7, 2025.

© 2025 Bloomberg Finance LP

The Port of Brownsville, Texas, offers a good example here. In addition to residing in a widely recognized business- and development-friendly state, the publicly owned port—despite dating back to 1937 as a WPA Depression-recovery project—is essentially a greenfield for developing what Sadler laid out.

“There’s tremendous value in a port like the Port of Brownsville,” I heard from William Dietrich, port director, in an interview. “We’ve got a 17-1/2 mile-long channel with a lot of green space for a company to come in and, for example, we’re talking about shipbuilding. It’s perfect.”

The port, right near the border of Mexico on the Gulf of America, is already home to companies such as All Star Metals, International Shipbreaking Ltd./EMR and SteelCoast, but has ample room for growth.

“The Port of Brownsville is the largest land-owning port in the United States,” Dietrich explained. ”We have 40,000 acres. Now, not all of it is buildable right now—it would take wetland mitigation and all that. But nevertheless, the land is there… We are already working on an MOU with a company that will start including our wetland mitigation as companies start coming in, so we’ll be able to front load that into projects into the future.”

Dietrich also sees the same urgency that Sadler called out. “We have to realize that right now, I believe, statistically, 60% of all vessels that are out in the ocean are Chinese,” he said. “If we don’t start working on this right now, by 2035, 80% of all commercial vessels are going to be Chinese vessels. You know, with that in mind, we’re going to have to ramp up this manufacturing and hybrid it in a way so that we can have long term sustainability, but it has to be done at the same speed that we did during WWII.”

Allied help

A worker welds in the section assembly area at the Hanwha Philly Shipyard in Philadelphia, Pennsylvania, US, on Wednesday, July 16, 2025. Photographer: Hannah Beier/Bloomberg

© 2025 Bloomberg Finance LP

Another big positive is the existence of just the kind of partnership Sadler called for with our allied nations. Hanwha Philly Shipyard in Philadelphia, Pennsylvania, is an excellent example. The former Philly Shipyard Inc., on part of the site of the Philadephia Navy Shipyard, it was acquired by South Korea’s Hanwha Group last year for $100 million.

“We’re looking to grow the existing business,” David Kim, the company’s CEO, told me in an interview. “We’re starting at one and a half ships per year and are aiming to grow that to 20 ships per year.”

One huge advantage, beyond simply keeping the domestic operation viable, that Hanwha brings to the table is workforce development. “We’re bringing tech and expertise from Korea to train and educate the people here,” Kim explained. “That includes bringing experts from Korea here as instructors. We want to create and grow U.S. jobs. We can also provide development opportunities—for example, rotating people from here to Korea for advanced training.”

Kim doesn’t see the development piece as a one-way street, however. “We want to bring U.S. strength to South Korea,” he said. “AI is a good example, where we can come up with even better solutions and use our U.S. site as a test bed.”

The modernization Sadler called for is a key element of the partnership. “We’re expanding the manufacturing capacity here as well as the jobs,” Kim explained. “We’ll modernize our U.S. capabilities. The U.S. has the need, and Hanwha is helping to fulfill it.”

These green shoots are vital, because the need is tremendous, if not downright frightening.

“Nothing that they do today or tomorrow is going to change the fact that the Navy is reducing in size of ships,” said Sadler. “It’s unavoidable at this stage. To its nadir, its lowest point before things start to turn around, of about 282, 280 ships by January of 2027… So we’re waving our weaknesses like red bloody meat in front of a very hungry lion.”

Source: https://www.forbes.com/sites/jimvinoski/2025/11/28/can-america-recover-from-its-shipbuilding-crisis/

Sorumluluk Reddi: Bu sitede yeniden yayınlanan makaleler, halka açık platformlardan alınmıştır ve yalnızca bilgilendirme amaçlıdır. MEXC'nin görüşlerini yansıtmayabilir. Tüm hakları telif sahiplerine aittir. Herhangi bir içeriğin üçüncü taraf haklarını ihlal ettiğini düşünüyorsanız, kaldırılması için lütfen service@support.mexc.com ile iletişime geçin. MEXC, içeriğin doğruluğu, eksiksizliği veya güncelliği konusunda hiçbir garanti vermez ve sağlanan bilgilere dayalı olarak alınan herhangi bir eylemden sorumlu değildir. İçerik, finansal, yasal veya diğer profesyonel tavsiye niteliğinde değildir ve MEXC tarafından bir tavsiye veya onay olarak değerlendirilmemelidir.

Ayrıca Şunları da Beğenebilirsiniz

SEC urges caution on crypto wallets in latest investor guide

SEC urges caution on crypto wallets in latest investor guide

The SEC’s Office of Investor Education and Assistance issued a bulletin warning retail investors about crypto asset custody risks. The guidance covers how investors
Paylaş
Crypto.news2025/12/15 01:45
Crucial Fed Rate Cut: October Probability Surges to 94%

Crucial Fed Rate Cut: October Probability Surges to 94%

BitcoinWorld Crucial Fed Rate Cut: October Probability Surges to 94% The financial world is buzzing with a significant development: the probability of a Fed rate cut in October has just seen a dramatic increase. This isn’t just a minor shift; it’s a monumental change that could ripple through global markets, including the dynamic cryptocurrency space. For anyone tracking economic indicators and their impact on investments, this update from the U.S. interest rate futures market is absolutely crucial. What Just Happened? Unpacking the FOMC Statement’s Impact Following the latest Federal Open Market Committee (FOMC) statement, market sentiment has decisively shifted. Before the announcement, the U.S. interest rate futures market had priced in a 71.6% chance of an October rate cut. However, after the statement, this figure surged to an astounding 94%. This jump indicates that traders and analysts are now overwhelmingly confident that the Federal Reserve will lower interest rates next month. Such a high probability suggests a strong consensus emerging from the Fed’s latest communications and economic outlook. A Fed rate cut typically means cheaper borrowing costs for businesses and consumers, which can stimulate economic activity. But what does this really signify for investors, especially those in the digital asset realm? Why is a Fed Rate Cut So Significant for Markets? When the Federal Reserve adjusts interest rates, it sends powerful signals across the entire financial ecosystem. A rate cut generally implies a more accommodative monetary policy, often enacted to boost economic growth or combat deflationary pressures. Impact on Traditional Markets: Stocks: Lower interest rates can make borrowing cheaper for companies, potentially boosting earnings and making stocks more attractive compared to bonds. Bonds: Existing bonds with higher yields might become more valuable, but new bonds will likely offer lower returns. Dollar Strength: A rate cut can weaken the U.S. dollar, making exports cheaper and potentially benefiting multinational corporations. Potential for Cryptocurrency Markets: The cryptocurrency market, while often seen as uncorrelated, can still react significantly to macro-economic shifts. A Fed rate cut could be interpreted as: Increased Risk Appetite: With traditional investments offering lower returns, investors might seek higher-yielding or more volatile assets like cryptocurrencies. Inflation Hedge Narrative: If rate cuts are perceived as a precursor to inflation, assets like Bitcoin, often dubbed “digital gold,” could gain traction as an inflation hedge. Liquidity Influx: A more accommodative monetary environment generally means more liquidity in the financial system, some of which could flow into digital assets. Looking Ahead: What Could This Mean for Your Portfolio? While the 94% probability for a Fed rate cut in October is compelling, it’s essential to consider the nuances. Market probabilities can shift, and the Fed’s ultimate decision will depend on incoming economic data. Actionable Insights: Stay Informed: Continue to monitor economic reports, inflation data, and future Fed statements. Diversify: A diversified portfolio can help mitigate risks associated with sudden market shifts. Assess Risk Tolerance: Understand how a potential rate cut might affect your specific investments and adjust your strategy accordingly. This increased likelihood of a Fed rate cut presents both opportunities and challenges. It underscores the interconnectedness of traditional finance and the emerging digital asset space. Investors should remain vigilant and prepared for potential volatility. The financial landscape is always evolving, and the significant surge in the probability of an October Fed rate cut is a clear signal of impending change. From stimulating economic growth to potentially fueling interest in digital assets, the implications are vast. Staying informed and strategically positioned will be key as we approach this crucial decision point. The market is now almost certain of a rate cut, and understanding its potential ripple effects is paramount for every investor. Frequently Asked Questions (FAQs) Q1: What is the Federal Open Market Committee (FOMC)? A1: The FOMC is the monetary policymaking body of the Federal Reserve System. It sets the federal funds rate, which influences other interest rates and economic conditions. Q2: How does a Fed rate cut impact the U.S. dollar? A2: A rate cut typically makes the U.S. dollar less attractive to foreign investors seeking higher returns, potentially leading to a weakening of the dollar against other currencies. Q3: Why might a Fed rate cut be good for cryptocurrency? A3: Lower interest rates can reduce the appeal of traditional investments, encouraging investors to seek higher returns in alternative assets like cryptocurrencies. It can also be seen as a sign of increased liquidity or potential inflation, benefiting assets like Bitcoin. Q4: Is a 94% probability a guarantee of a rate cut? A4: While a 94% probability is very high, it is not a guarantee. Market probabilities reflect current sentiment and data, but the Federal Reserve’s final decision will depend on all available economic information leading up to their meeting. Q5: What should investors do in response to this news? A5: Investors should stay informed about economic developments, review their portfolio diversification, and assess their risk tolerance. Consider how potential changes in interest rates might affect different asset classes and adjust strategies as needed. Did you find this analysis helpful? Share this article with your network to keep others informed about the potential impact of the upcoming Fed rate cut and its implications for the financial markets! To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin price action. This post Crucial Fed Rate Cut: October Probability Surges to 94% first appeared on BitcoinWorld.
Paylaş
Coinstats2025/09/18 02:25
Bitcoin’s Battle with Market Pressures Sparks Concerns

Bitcoin’s Battle with Market Pressures Sparks Concerns

Throughout the weekend, Bitcoin exhibited a degree of stability. Yet, it is once again challenging the critical support level of $88,000.Continue Reading:Bitcoin
Paylaş
Coinstats2025/12/15 01:35