If the rising tensions from Iran’s blockade of the Strait of Hormuz have underscored anything, it’s how fragile—and essential—the global shipping economy really is. Even the threat of disruption has sent oil prices surging and risked popping the AI bubble, exposing how much modern economies still depend on maritime infrastructure.
And, in the U.S., a quieter maritime crisis is unfolding—this time in the workforce: its shipbuilding industry is facing a shortfall of 200,000 to 250,000 workers over the next decade, spanning critical roles like welding, soldering, and frontline management, according to a McKinsey analysis of U.S. Department of Labor data. That’s on top of an already greying workforce: 27% of shipbuilders are 55 or older.
It’s the culmination of a decades-long generational shift. As baby boomers filled shipyards throughout the late 20th century, fewer younger workers—particularly millennials—pursued trade careers. Many were drawn toward degrees and white-collar careers, and pulled by the perception that more blue-collar jobs were grueling and unstable. Now, as the older cohort retires, the pipeline behind them is thin.
That vulnerability, however, may present an unexpected opportunity—especially for Gen Z workers searching for stable careers. Traditional entry-level corporate roles are becoming harder to land as companies pull back hiring amid economic uncertainty and advances in artificial intelligence.
“This is absolutely a rare window for young workers because the demand is real, funded, and seemingly long-term,” Fraser Patterson, CEO of Skillit—an AI-powered hiring platform for construction workers—told Fortune.
“These are not speculative jobs. They are tied to multi-decade investment cycles, and they offer a path to strong earnings, skill development, and stability without requiring a traditional four-year degree. You’re seeing a reset where skilled trades are becoming one of the most reliable ways to build a career.”
Shipbuilding jobs are booming: AI-proof roles with growing pay and historic 18% raises for some workers
The decline in U.S. shipbuilding didn’t happen overnight. Over the last half-century, the U.S. has fallen from producing about 5% of the world’s ocean-going commercial vessels in the 1970s to just 0.2% today. For the work that remained, it was long seen as physically demanding without wages high enough to justify it.
According to the U.S. Bureau of Labor Statistics, the average annual wage for ship and boat building workers is about $67,000, while ship engineers can earn six-figure salaries. But as policymakers and business leaders push to rebuild domestic manufacturing and reduce reliance on foreign shipyards, the pressure is on to make roles more competitive—starting with pay.
U.S. Navy Secretary John Phelan said in his confirmation hearing last year that Trump’s focus for the Navy Department was “shipbuilding, shipbuilding, shipbuilding,”— and workers’ wages have been top of the list for improvement. Last April, the president signed an executive order with the goal of “Restoring America’s Maritime Dominance.”
“I think this is really an issue of wages, to be honest, when I look at it across states,” Phelan said, noting employees can earn a similar wage working at Amazon or Buc-ee’s mega gas stations. When folks are aware of what else is out there to make the same income, “it’s hard to get that person to want to do that job.”
Change is already underway. Unionized workers at Huntington Ingalls Industries’ shipyards in Pascagoula, Mississippi, announced a new contract that will grant an immediate 18% base wage increase, with total pay projected to rise between 35% and 47% over the next five years. It is the largest pay raise in Ingalls Shipbuilding history. HII as a whole is the largest military shipbuilder in the U.S. and the largest source of manufacturing in the state of Mississippi.
Earn while you learn: Shipbuilding apprenticeships offer a debt-free path into high-demand skilled trades
Shipbuilding is broader than many realize, requiring workers from across nearly every skilled trade. Shipyards rely on welders, electricians, pipefitters, and machinists—roles that demand precision, pay increasingly well, and are far less susceptible to automation than many white-collar jobs.
The industry also faces geographic constraints. Unlike electricians or plumbers, who can find work almost anywhere, shipyard jobs are concentrated in specific hubs from Philadelphia and San Diego to smaller cities like Mobile, Alabama, and Newport News, Virginia.
To attract workers, companies have begun expanding apprenticeship programs and investing in training pipelines that lower barriers to entry. For many roles, workers are getting paid to learn on the job—often without taking on student debt.
That shift is already resonating with some workers. Apprentices interviewed by 60 Minutes at a Philadelphia shipyard said roles outperformed their previous jobs—from Amazon grocery picking to cake decorating—not just in pay, but in long-term prospects.
“I would tell my friend that instead of paying out of pocket to go to a trade school, you’re getting paid while you learn here the entire time,” one apprentice said.
