U.S. Shipbuilding: Tactical Strategy or Ready to Cut Steel in 2026?

Maritime 2026 opened with a bang between the announcement of Battleships, Venezuela, shadow fleets and yes, U.S. shipbuilding. The commercial building issue may come down to strategic patience or the adaptability to evolve through new technology while ignoring historic, old tactics. The subject requires another year of debate as the line separating the success or failure of Naval and Commercial shipbuilding in the U.S. is slowly becoming a blur. Look towards Naval growth developing in non-traditional patterns … because it has to.

With China leading all of the discussions, it is only fitting to quote Sun Tzu in the Art of War.

“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat”

Copyright Yazid Nasuha/AdobeStock

In no uncertain terms 2025 brought plenty of “noise” to both commercial markets and geopolitical events. We now need a strategic path coupled with new tactics to move forward in the shipbuilding world to dictate how and when that U.S. victory can occur.  

A newly elected Administration in Washington raised the question of our capability to rebuild and revitalize U.S shipbuilding in 2025. Executive Orders, draft legislation and Senate hearings creating the “noise” Sun Tzu warned of. That noise exposed a lack of priority and support from previous administrations. The debate of our shipbuilding capacity, our shipbuilding labor issues, costs and delays has reached every public, military and private news agency. Most of the reports have little to no knowledge of the problem or the solution. All speak to the influence of China. All of the solutions need to support the Warfighter.

The “noise” has gone beyond U.S. borders.

Our Korean allies have realized that inflationary costs, labor issues, tariffs and capacity can lead to their decline in competitive shipbuilding within the Korean peninsula and with that they are looking elsewhere for growth. Their problem can present itself well within one or two decades addressing many of the same U.S. problems discussed throughout 2025. Japan experienced the same problems when they first competed with Korea in the 1990’s and with that we question where Japan’s naval shipbuilding is headed as it enters the discussions.

India has now joined the group negotiating technical relationships with Korean Shipbuilders and announcing a $5.4 billion massive subsidy to direct shipbuilding costs and increase shipyard capacity and infrastructure. The support extends well into 2036 and can continue to 2047. The length of the support is important to note as India determined the period is necessary to build greenfield, upgrade operations and rise to near Asian shipyard capability.

Those competitive realizations were all based on a global commercial shipbuilding supply and demand. Prior to those decades, no one questioned U.S. Navy superiority or our ability to build as a superpower. All four Far East countries are now ramping up Naval construction, boosting military budgets, exporting Naval vessels and creating a global “cold war” market of who can build bigger, better, faster and cheaper.

Our past American generations confidently blanketed singular Soviet Union cold war efforts. That is no longer the case. The divide is much deeper and more dangerous as China has proven there is no “blur” between their Naval fleet and commercial fleets. The term “dual use” has a new definition.

China recently released reports of a medium size commercial cargo ship carrying a selection of sixty (60) containerized vertical launch cells, supporting radar systems and close combat weapons.

China recently released reports of a medium size commercial cargo ship carrying a selection of sixty (60) containerized vertical launch cells, supporting radar systems and close combat weapons. New Year reports photographed a ship outfitted with EMALS – a modular mobile road drone launch system. The same medium size cargo ship was photographed at the end of 2025. Doubtful this is the new attempt of piracy protection at sea. Commercial tonnage will have military usefulness and civilian mariners will have PLAN military training. We need to fall into the same line.

Maritime Operations Group (MOG) and HD Hyundai Heavy Industries (HHI) signed a memorandum of understanding MoU aimed at accelerating the development, construction and delivery of modern diesel-electric submarines and undersea technologies for U.S. government and allied missions. Image courtesy the Author

The U.S. Shipbuilding Path Ahead

Think about the length of time required for U.S. shipbuilding to reach capacity levels that can compete internationally with China. This is heavy lifting and our long-term shipbuilding solutions need to take that into account. The short solution is all about tactics in the immediate future with that tactical choice being a period of two to five years. Listen to Sun Tzu.

Each one of these four countries subsidize their shipbuilding efforts, while the U.S. has taken the position “we will not subsidize our yards.” Unfortunately for all the wrong reasons.

With that it is our opinion we will not compete with China in a shipbuilding market. The global commercial giants will continue to build in China until such time that the Indo-Pacific theater becomes a perceived threat or a call to arms. Make no mistake how that theater develops will be the basis of India’s and the Far East shipyard’s bet – whether they are friend or foe. Whether hot or cold war.

And with that it is our opinion we need to move into a war time mindset as multi domain manned and unmanned systems blur both military and commercial boundaries.

We must develop programs to deliver bottoms within the two to five years and follow-on tonnage in updated and efficient U.S. shipyard capacity in long term strategies. The Amtech Network is working though more than several projects as design integrators and Vessel Construction Managers (VCM) to meet those goals. All tactical projects and all meeting short term delivery requirements simply because the first series are built with foreign capacity and partnerships.

Look to the Arctic

The first positive tactical movement within the Administration, MIB, and USCG was the current contract award for the construction of the “Arctic Security Cutters”. Under that Memorandum of Understanding between the U.S and Finland, Rauma Marine Construction will provide their icebreaking technology and experience to deliver two vessels from the Finish yard by 2028. A total of four (4) medium size icebreakers will be built in Finland. Up to seven additional vessels will be built in the United States with Bollinger Shipyard in Houma. That is the beginning of an important Arctic strategy.

The second tactical 2025 year-end Memorandum of Understanding was executed in Washington DC between the Maritime Operating Group (MOG) and Hyundai Heavy Industries (HHI) Naval Shipbuilding Group to collaborate on the design and construction of hybrid diesel electric submarines for U.S. Navy training, technology testing, research & development and special missions. The MOG principals and advisors bring more than 50 years’ experience in SEAL team SDV operation and Hyundai brings its decades of shipyard manufacturing expertise as the largest and most successful shipbuilding company in the world. Grand Bay Capital Management is navigating the financial requirements of the project and the Amtech network is selected as the VCM.

The first series of submarines will be built in Hyundai under commercial contract and meet the tactical delivery periods we have addressed. The MOU meets MASGA tariff agreements between the U.S. and ROK governments and supports Montana Senator Tim Sheehy’s “As a Service” agenda to introduce a commercially based advanced undersea defense ecosystem. The MOU addresses the development of MRO facilities in the Unites States under HHI supervision and eventual construction of follow-on vessels in the United States. That is the subsea strategy to support our nuclear fleet.

A third tactical proposal is being developed by NavalLinks.

The NavalLinks Supplylink ATB brings together technologies readily designed and constructed in U.S. Jones Act markets and shipyards to maximize the efficiency and storage of material. The barge as a floating resupply base is capable of storing up to 8.4 million gallons of fuel and 120 TEUs. The clear deck design is capable of supporting VTOL aircraft, vehicle storge and modular habitation facilities. Outfitted with hydraulic twist locks in key defensive locations allows for rapid mounting of self-defense mission modules.

To meet the tactical time periods, US Navy Navajo Class T-ATS tugs are retrofitted with an Intercon model 64 ATB coupler pin in the stern notch to perform ocean transits at speed up to 12 knots. The strategy concept allows construction to be introduced to second tier US shipyard capacity for both tug modification and barge construction.  Dual use defense capability with US shipbuilding current designs and capacity well below current defense budget costs to move the same cargo.

There are other support vessel tactical solutions and they are available if the defense industry understands the current shipbuilding issues while old tactics are set aside. The strategy is to place commercial tonnage in the water to serve defense purposes. We may not meet Chinese capacity at this tactical period. However, we can follow Sun Tzu’s guidance and build the strategy. After all he was Chinese.

“If you know the enemy and know yourself, you need not fear the result of a hundred battles”