From Ulsan to America: What U.S. Shipbuilding Must Learn from Korea

By Nikko Forss, Executive Vice President, Design Solutions, NAPA

The U.S. is preparing for a shipbuilding awakening. The world that awaits it is one increasingly shaped by Asia, with China and South Korea leading the way in commercial shipbuilding in terms of deliveries, shipbuilding capacity and advanced designs. 

Data from the 2024 Clarksons Global Shipbuilding Review illustrates this point. While last year saw the largest order intake in 17 years, shipyard output in South Korea increased by 22% and it achieved 28% market share by compensated gross tonnage, meanwhile China’s output was up 18% compared to 2023 and its market share was 53%.

For the U.S., the climb up the shipbuilding ranks is steep but not impossible, and it is taking the challenge seriously. Two key pieces of U.S. policy have been developed. Firstly, the Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act. The bill is yet to be passed into law, but it does have bipartisan support. Secondly, President Trump signed an executive order – “Restoring America’s Maritime Dominance” – which demands a government-wide Maritime Action Plan that was due November 5th, no delayed. This core policy directive aims to expand the maritime industrial base, spanning shipbuilding, repair and components.

As well as shipyard infrastructure, the plan recognizes the significance of a well-trained and well-funded domestic maritime workforce. It proposes a Maritime Security Trust Fund, directs acquisition-process reforms, explores “maritime prosperity zones,” tightens harbor maintenance fee (HMF) collection, expands mariner training, and aims to modernize the U.S. Merchant Marine Academy.

The U.S. doesn’t have to navigate this challenging climb alone and there are clear opportunities to collaborate with those involved in the Asian shipbuilding revolution. During President Trump’s recent visit to South Korea, the Asian shipbuilding leader confirmed the country will invest $150 billion in U.S. shipbuilding. HD Hyundai Heavy Industries has already partnered with Huntington Ingalls Industries to build U.S. navy auxiliary ships, and is looking to further expand its role in U.S. shipbuilding. 

South Korea’s secret sauce

For the U.S., partnering with South Korea is a well-considered move. South Korea and its major shipyards, including HD Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries, are known for their high-tech, high-value, and best-in-class vessels, manufactured on a massive scale. Following yard visits, U.S. officials have publicly stated how impressed they are by the digitalization and efficiency of the nation’s shipyards. 

South Korea’s success story is, in part, a result of decades of strong collaboration with global industry partners and investment in digitalization. Over the years, Korean shipbuilding companies have successfully adopted established best practices and technologies, and then perfected them through relentless innovation, standardization, and integration, transforming these methods into world-leading industrial systems that now lead the way for the rest of the market. These foundations have set up its yards to deliver shipbuilding projects on time, on budget and at scale. 

For many shipyards, the aim is to create a ‘digital shipyard’. Core to this is extending digital 3D workflows and using digital twins to support the optimization of the design process from the early stages to construction and production and then provide a valuable source of information throughout the ship’s lifetime at sea. This concept of digital continuity reflects the untapped potential of data, especially data shipyards already have, and using 3D models of different disciplines in an intelligent way. 

With several teams across multiple disciplines able to work on shared models simultaneously, shipyards can improve information access between all the people involved in the ship design and building process. Naval architects and engineers can also achieve more design iterations in a shorter timeframe, with fewer errors, lower costs, and higher quality results in large and more complex shipbuilding projects. The same 3D models optimized for the specific needs of ship design can also make classification approval processes faster and more connected. 

Training the workforce

The saying goes, ‘work smarter not harder’. And at a time when the U.S. lacks immediate access to a large, appropriately trained maritime workforce, efficiency will be key, particularly for smaller shipyards.

Countries like Japan and Korea, also struggled to attract new talent to the shipbuilding industry. In Korea, the problem has been particularly acute since newbuilding work resumed after the lifting of COVID restrictions, but the situation has its roots in the layoffs that followed the 2014 market downturn, when the workforce was halved from some 203,000 workers to around 92,000.

Digital technologies can help alleviate recruitment challenges on two fronts: by removing duplicated tasks to enable engineers and naval architects to maximize their productivity, and by making the sector more attractive to younger generations. Plus, with the rapid evolution of artificial intelligence, the potential of data and digitalization to increase efficiency and add even more value is huge.

Why shipbuilding matters

From employment to economic growth and national security to trade policy, there are several reasons why the U.S. is investing in revitalizing its shipbuilding industry. And where there’s a will, there’s a way. The way forward is one paved by South Korea which, apart from being an ally of the White House, is also an industry leader in shipbuilding. 

South Korea’s blueprint for success is anchored in the concept of a digital shipyard, an idea which embraces digital continuity. By extending the use of data and 3D models, shipyards are able to achieve real-time collaboration, innovation, and efficiency enhancements. This strategy has served South Korea well, allowing it to deliver shipbuilding projects on time, on budget, and at scale today. Adopting, integrating and perfecting these proven best practices from allies will allow the U.S. to fast-track its ship building renaissance.

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