US Manufacturing's Moonshot: the Urgent Call to Rebuild Our Industrial Might

From shipyards to space, America's eroding dominance in critical areas needs rebuilding with workforce training and pipelines and public-private partnerships.
Oct. 30, 2025
5 min read

Key Highlights

  • China's shipbuilding industry now leads globally, producing more commercial tonnage than the U.S. has since WWII, signaling a decline in American industrial dominance.
  • Skills gaps, cumbersome procurement processes and restrictive policies limit innovative companies' ability to contribute to defense and industrial modernization.
  • Regional initiatives like Philadelphia's Navy Yard demonstrate models for workforce development and technological integration that can be scaled nationally.
  • Accelerating AI adoption and streamlining government contracts are crucial steps to rebuild America's manufacturing prowess and secure future economic and military strength.

Sound the alarm: America's manufacturing prowess, once the envy of the world, is at risk of being outpaced by rivals who build faster and bolder. Last year alone, China's State Shipbuilding Corporation produced more commercial tonnage than the entire U.S. shipbuilding industry has managed since World War II, as reported in a March 2025 Center for Strategic & International Studies brief.

Beijing now commands more than half of global commercial orders, while our share has dwindled to a tenth of a percent. This disparity isn't confined to shipyards—it's a stark signal of eroding economic strength, fragile supply chains and diminished deterrence on the global stage.

It's Time to Act

During World War II, we relentlessly forged liberty ships and became the Arsenal of Democracy. Today, as modern warfare evolves into an industrial contest—evident in the drone swarms reshaping battlefields in Ukraine—we must reignite freedom's forge before the next crisis strikes.

China's booming military-industrial base is closing the gap in critical domains, including a submarine arms race in the Pacific where Beijing's fleet is growing quieter, faster and more lethal, capable of carrying advanced weapons and sensors while staying submerged longer. Meanwhile, America's capabilities wither, leaving us vulnerable in an era where production speed determines victory. The decade ahead will belong to the country that can build what it imagines. The time to act is now.

These challenges demand a clear-eyed reckoning. The Pentagon's undersecretary for research and engineering, Emil Michael, has warned that our defense industrial base must expand to include innovative newcomers, yet barriers like cumbersome procurement processes force companies such as SpaceX, Palantir and Anduril to sue the government just to secure their first contracts.

Speaking at the National Defense Industrial Association’s Emerging Technologies for Defense conference, as reported by SpaceNews, Michael asked, "The question is, how do we create an environment where new companies that have real solutions can come in through a front door as opposed to a side door through a court case?" Faster procurement and broader embrace of artificial intelligence—from battlefield decision-making to predictive logistics—could accelerate this, much like dual-use technologies such as Starlink have exploded private investment by serving consumer, business and defense needs simultaneously.

Other Headwinds

Workforce shortages compound the urgency. A New York Times report, citing Bureau of Labor Statistics data, found that nearly 400,000 factory jobs remain unfilled nationwide, driven by retiring baby boomers, a dearth of young entrants and societal biases against non-college paths.

“For every 20 job postings that we have, there is one qualified applicant right now,” David Gitlin, chairman and CEO of Carrier Global, told the New York Times. Immigration policies that restrict migrant labor pools and tariffs that inflate raw material costs add further strain, turning trade uncertainties into operational headaches.

Even vital support networks face headwinds: Recent decisions (which were temporarily reversed) not to renew federal contracts for 10 Manufacturing Extension Partnership programs, which provide technical assistance to small firms, threaten the stability of this nationwide system that last year alone saved manufacturers $2.6 billion, spurred $5 billion in investments and created or retained 108,000 jobs, per National Institute of Standards & Technology estimates reported by IndustryWeek. These programs, operating in every state since 1988, are essential for helping small- and mid-sized manufacturers adopt automation and compete globally—yet their uncertain funding creates another hurdle that must be overcome to reshore production effectively.

Prosperity and security are two sides of the same coin, both minted on the shop floor. Without swift rebuilding, we risk not just economic decline but national vulnerability. Yet amid these threats, glimmers of optimism emerge from proven models that can scale nationwide.

A Regional Model Built to Travel

Philadelphia offers a compelling proofpoint. As the birthplace of the U.S. Navy, our city is poised to lead the charge in defense manufacturing's resurgence, especially with the Navy and Marine Corps' 250th anniversary celebration in October 2025. Here, at the revitalized Navy Yard—once a hub of wartime shipbuilding—innovation thrives alongside legacy craftsmanship. 

The Delaware Valley Industrial Resource Center's 2030 Manufacturing Moonshot is our blueprint: By cultivating over 12,000 skilled professionals through AI training, workforce pipelines, and public-private partnerships, we're equipping small- and mid-sized manufacturers with practical tools like predictive maintenance and supply-chain analytics. Our AI Center of Excellence has already helped firms integrate these technologies, strengthening the Maritime Industrial Base and aligning with Pentagon priorities for resilient defense production.

This regional model is built to travel. It can empower every state to modernize plants, restore capacity, and draw a new generation into advanced manufacturing careers—high-paying roles that promise stability in an AI-driven world. What works in Southeastern Pennsylvania can fortify America's industrial heartland, turning local successes into national might.

Federal and state leaders, educators, capital markets and private enterprise must align now—investing in workforce programs, streamlining procurement and safeguarding essential networks like the MEPs. Failure isn't an option. By recommitting to Freedom's Forge, we can secure prosperity for generations, blending bold innovation with unbreakable resolve. Join us in this Manufacturing Moonshot. Let's make America the world's production powerhouse once more.

About the Author

Chris Scafario

President and CEO, Delaware Valley Industrial Resource Center (DVIRC)

Chris Scafario is the President and CEO of the DVIRC, a nonprofit and Manufacturing Extension Partner dedicated to strengthening regional manufacturing. 

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