The Economic 

Importance of the U.S. 

Shipbuilding and 

Repairing Industry 

Maritime Administration 

(MARAD) 

November 2015 
The Economic Importance of the U.S. 

Shipbuilding and Repairing Industry 

Table of Contents 

Executive Summary ..................................................................................................................................................... 1

I. Introduction ............................................................................................................................................................ 1

II. Overview of the U.S. Shipbuilding and Repairing Industry ........................................................................................ 3

A. Industry Definition ............................................................................................................................................ 3

B. Description of the Industry ................................................................................................................................. 3

III. The Economic Impact of the U.S. Shipbuilding and Repairing Industry ................................................................... 13

A.  National Impact ............................................................................................................................................... 13

B. State Impacts ................................................................................................................................................... 16

Appendices ................................................................................................................................................................ 21

Appendix A: Economic Impact Breakdown: State Level Detail .............................................................................. 21

Appendix B: Data Sources and Methodology ......................................................................................................... 25

Appendix C: Description of IMPLAN Model ........................................................................................................ 28
E-1 

Executive Summary 

The U.S. shipbuilding and repairing industry is comprised of establishments that are primarily 

engaged in operating shipyards, which are fixed facilities with drydocks and fabrication equipment. 

Shipyard activities include ship construction, repair, conversion and alteration, as well as the 

production of prefabricated ship and barge sections and other specialized services. The industry also 

includes manfacturing and other facilities outside of the shipyard, which provide parts or services for 

shipbuilding activities within a shipyard, including routine maintenance and repair services from 

floating drydocks not connected with a shipyard. 

The purpose of this report is to measure the economic importance of the U.S. shipbuilding and 

repairing industry at the national and state levels for calendar year 2013. The importance of the 

industry is not limited to the direct output and employment it generates (i.e., “direct impact”). 

Companies in the shipbuilding and repairing industry purchase inputs from other domestic industries, 

contributing to economic activity in those sectors (i.e., "indirect" impact). Employees spend their 

incomes, helping to support the local and national economies (i.e., "induced" impact). Thus, the 

economic importance of the U.S. shipbuilding and repairing industry includes direct, indirect, and 

induced effects. Put differently, the report seeks to document what happens in the shipbuilding and 

repairing industry and its relationships to the broader economy. It is important to note that the term 

“economic impacts” as used in this report reflects the association of employment, labor income, and 

gross domestic product (GDP) with the shipbuilding and repairing industry, but does not imply that 

some of this economic activity would not otherwise exist without the industry (particularly with 

regard to induced impacts). 

The IMPLAN model, an input-output (I-O) model based on Federal government data, was used to 

estimate the industry's overall economic impact. I-O modeling is typically employed to analyze how a 

change in economic activity in one sector of the economy affects activities in other sectors of the 

economy. In a so-called “marginal” impact analysis, I-O model results can be viewed as showing the 

impact of small changes in activity in one sector (e.g., shipbuilding) on the rest of the economy before 

any price adjustments and before businesses, workers, and consumers adjust their activities. The 

ultimate economic impact of a change in activity can be less pronounced than shown in initial I-O 

results, particularly if induced price changes are large. 

I-O models can also be used in an economic contribution analysis, as done in this study. By simulating 

a “complete shutdown” of an existing industry, an economic contribution study attempts to quantify 

the portion of a region’s economy that can be attributed to such an existing industry. It uses the I-O 

model to identify all backward (i.e., upstream) linkages in the study area. An economic contribution 

analysis, when compared with the entire study area economy, offers insights into the relative extent 

and magnitude of the industry in the study area. However, this is not to say that a complete shutdown 

of the shipbuilding and repairing industry would result in the permanent loss of the jobs and output 

attributable to the industry through this exercise. In this unlikely event, the resources currently 

allocated to the shipyards may find employment in other industries, which would compensate in part 

for the loss of the jobs and output from the shipyard sector. 

The study disaggregates the industry's economic activity into two components, operational and capital 

investment impacts. The operational impact is from purchases of intermediate goods and services, 
E-2 

and its capital investment impact is from investment in new structures and equipment.1 These 

economic impacts represent all of the backward linkages of the U.S. shipbuilding and repairing 

industry to its suppliers. They do not capture any forward linkages (i.e., the economic impact on 

production in sectors that use ships or other shipyard products as an input). 

Currently there are 124 shipyards in the United States, spread across 26 states, that are classified as 

active shipbuilders. In addition, there are more than 200 shipyards engaged in ship repairs or capable 

of building ships but not actively engaged in shipbuilding.2 The majority of shipyards are located in 

the coastal states, but there also are active shipyards on major inland waterways such as the Great 

Lakes, the Mississippi River, and the Ohio River. Employment in shipbuilding and repairing is 

concentrated in a relatively small number of coastal states, with the top five states accounting for 63 

percent of all private employment in the shipbuilding and repairing industry. 

The Federal government, including the U.S. Navy, U.S. Army, and U.S. Coast Guard, is an important 

source of demand for U.S. shipbuilders. While just one percent of the vessels delivered in 2014 (11 of 

1,067) were delivered to U.S. government agencies, 10 of the 12 large deep-draft vessels delivered 

were delivered to the U.S. government: five to the U.S. Navy, four to the U.S. Coast Guard, and one 

to the National Science Foundation. 

In 2013, the U.S. private shipbuilding and repairing industry directly provided 110,390 jobs (see 

Figure E1), $9.2 billion in labor income, and $10.7 billion in gross domestic product, or GDP, to the 

national economy (see Figure E2). Including direct, indirect, and induced impacts, on a nationwide 

basis, total economic activity associated with the industry reached 399,420 jobs, $25.1 billion of labor 

income, and $37.3 billion in GDP in 2013. 

Figure E1. Employment Associated with the U.S. Shipbuilding and Repairing Industry, 2013 

 Source: Calculations using the IMPLAN modeling system (2013 database). 

1

 The IMPLAN model results were adjusted to include the economic activity attributable to capital spending by the 

shipbuilding and repairing sector. 2

 See www.shipbuildinghistory.com for details. 

110,390 277,320 11,710

0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000

Employment

Number of Jobs

Direct Impacts Indirect and Induced from Operations Indirect and Induced from Capital Investments

Total Employment Impact = 399,420
E-3 

Figure E2. Labor Income and GDP Associated with the U.S. Shipbuilding and Repairing 

Industry, 2013 

Source: Calculations using the IMPLAN modeling system (2013 database). 

The industry impact by state varies based on the level of direct activity and the share of the supply 

chain included in the state. The states with the highest levels of overall direct, indirect, and induced 

employment associated with the industry are Virginia, California, Mississippi, Louisiana, and Texas 

(see Figure E3). 

Figure E3. Total Direct, Indirect, and Induced Employment 

Associated with U.S. Shipbuilding and Repairing Industry Operations, by State 

(10 States with Highest Levels, 2013) 

Source: Calculations using the IMPLAN modeling system (2013 database). 

Considering the indirect and induced impacts, each direct job in the shipbuilding and repairing 

industry is associated with another 2.6 jobs in other parts of the US economy; each dollar of direct 

$25.5B

$15.2B

$1.1B

$0.7B

$0 $5 $10 $15 $20 $25 $30 $35 $40

GDP

Labor Income

Billions of Dollars

Direct Impacts Indirect and Induced from Operations Indirect and Induced from Capital Investments

$10.7B

$9.2B

Total Impact = $25.1B

Total Impact = $37.3B

65,310 

34,810 

29,020 28,080 26,490 

22,000 20,500 

14,360 12,800 9,860 

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000
E-4 

labor income and GDP in the shipbuilding and repairing industry is associated with another $1.74 in 

labor income and $2.49 in GDP, respectively, in other parts of the US economy. 
I. Introduction 

The purpose of this report is to quantify the economic importance of the U.S. private shipbuilding and 

repairing industry in 2013, in terms of employment, labor income, and GDP.3 The study quantifies 

the industry's operational impact (due to its purchases of intermediate inputs) at the national and state 

levels and capital investment impact (due to its investment in new structures and equipment) at the 

national level. These economic impacts represent all of the backward linkages of the U.S. shipbuilding 

and repairing industry to its suppliers. They do not capture any forward linkages (i.e., the economic 

impact on production in sectors that use ships as an input). All economic impacts are reported in 

gross terms, which means they do not take account of what would have taken place in the absence of 

the shipbuilding and repairing industry. 

In describing the economic importance of the U.S. shipbuilding and repairing industry through its 

employment and purchases of goods and services, this report considers three separate channels -- the 

direct impact, the indirect impact, and the induced impact -- that in aggregate provide a measure of the 

economic importance of the U.S. shipbuilding and repairing industry. 

 Direct impact is measured as the jobs, labor income, and GDP within the shipbuilding and

repairing industry.

 Indirect impact is measured as the jobs, labor income, and GDP occurring throughout the

supply chain of the shipbuilding and repairing industry. The indirect impact also includes

suppliers to the companies providing goods and services to the shipbuilding and repairing

industry.

 Induced impact is measured as the jobs, labor income, and GDP resulting from household

spending of labor income earned either directly or indirectly from the shipbuilding and

repairing industry's spending under standard input-output modeling assumptions. It should be

interpreted with caution as it involves personal spending decisions by employees of shipyards

and its supply chain that are further removed from direct shipyard expenditure activities and is

more difficult to estimate.

Together these effects demonstrate the shipbuilding and repairing industry's economic importance and 

relationship to all sectors of the U.S. economy. 

The IMPLAN model, an input-output (I-O) model based on Federal government data, was used to 

estimate the industry's overall economic impact. I-O modeling is typically employed to analyze how a 

change in economic activity in one sector of the economy affects activities in other sectors of the 

economy. In a so-called “marginal” impact analysis, I-O model results can be viewed as showing the 

impact of small changes in activity in one sector (e.g., shipbuilding) on the rest of the economy before 

any price adjustments and before businesses, workers, and consumers adjust their activities in 

response to potential changes. The ultimate economic impact of a change in activity can be less 

pronounced than shown in initial I-O results, particularly if induced price changes are large. 

I-O models can also be used in an economic contribution analysis, as done in this study. By 

simulating a “complete shutdown” of an existing industry, an economic contribution study attempts to 

quantify the portion of a region’s economy that can be attributed to such an existing industry. It uses 

3

 Gross domestic product (GDP) reflects the income earned by labor (e.g., wages and salaries) and capital (e.g., profits) 

and any indirect business taxes (including excise taxes, property taxes, fees, licenses, and sales taxes paid by businesses). 
the I-O model to identify all backward (i.e., upstream) linkages in the study area. An economic 

contribution analysis, when compared with the entire regional economy, offer insights into the relative 

extent and magnitude of the industry in the study area. However, this is not to say that a complete 

shutdown of the shipbuilding and repairing industry would result in the permanent loss of the jobs and 

output attributable to the industry as these resources may find employment in other industries. 

The rest of this report is organized as follows. Section II provides a brief overview of the U.S. 

shipbuilding and repairing industry. Section III presents estimates of the industry's economic impact 

in 2013 in terms of employment, labor income, and GDP at the national and state levels. Appendix 

A provides additional details on the industry's economic impact at the state level. Appendix B

provides a description of the data sources and methodology used for the study. Appendix C provides 

a brief description of the input-output model used in the analysis. 
II. Overview of the U.S. Shipbuilding and

Repairing Industry

A. Industry Definition 

Economic activity directly associated with the U.S. shipbuilding and repairing industry is primarily 

captured in goverment data under the North American Industry Classification System (NAICS) sector 

336611, Shipbuilding and Repairing. According to the U.S. Census Bureau, this industry comprises 

establishments that are primarily engaged in operating shipyards, which are fixed facilities with 

drydocks and fabrication equipment. Shipyard activities include ship construction, repair, conversion, 

and alteration. They also include the production of prefabricated ship and barge sections, and other 

specialized services.4 The industry may also include manfacturing and other facilities outside of the 

shipyard, which provide parts or services for ship building activities within a shipyard. 

The industry also includes a portion of NAICS sector 488390, Other Support Activities for Water 

Transportation. Among other activities, NAICS sector 488390 includes routine repair and 

maintenance of ships from floating drydocks, as well as ship scaling services not done in a shipyard. 

According to the 2012 Economic Census, approximately 84.2 percent of the revenues of NAICS 

sector 488390 were derived from routine repairs and maintenance of maritime vessels.5

B. Description of the Industry 

Currently there are 124 shipyards in the United States, spread across 26 states, that are classified as 

active shipbuilders. In addition there are more than 200 shipyards engaged in ship repairs or capable 

of building ships but not actively engaged in shipbuilding.6 As shown in Figure 1, below, the 

majority of active shipbuilders are located in the coastal states. However, there also are active 

shipyards on major inland waterways such as the Great Lakes, the Mississippi River, and the Ohio 

River. The industry also includes manufacturing and other facilities outside of these shipyards that 

provide parts or services for the shipbuilding and repairing industry. Furthermore, the industry 

includes routine maintenance and repairs conducted from floating drydocks. As a result, the scope of 

economic activity directly attributable to the U.S. shipbuilding and repairing industry is wider than the 

26 states shown in Figure 1, below. 

4

 http://www.census.gov/cgi-bin/sssd/naics/naicsrch?chart=2007 5

 U.S. Census Bureau, 2012 Economic Census, Report EC1248I3, “Transportation and Warehousing: Industry Series: 

Preliminary Product Lines Statistics by Industry for the U.S.: 2012” 

6

 See the directory of shipyards at http://shipbuildinghistory.com. Of the 124 shipyards summarized in Figure 1, five are 

public yards operated by the U.S. Navy or U.S. Coast Guard, 22 are mid-sized to large shipyards capable of building naval 

ships and submarines, oceangoing cargo ships, drilling rigs and high-value, high-complexity mid-sized vessels, 88 are 

smaller yards capable of building the simpler types of smaller commercial vessels, such as tugs, towboats, offshore service 

vessels, fishing vessels, ferries and barges. In addition to these shipyards, there are nine shipyards currently producing 

large yachts and 13 occasionally producing larger vessels. Shipbuildinghistory.com also lists 287 shipyards and boatyards 

that are classified as inactive. 
Figure 1. 26 States with Active Shipbuilders 

 Source: Directory of shipyards at http://shipbuildinghistory.com

1. Private Employment

The U.S. private shipbuilding and repairing industry accounted for an estimated 110,390 jobs in 2013, 

including both payroll employees and self-employed workers and both full-time and part-time 

workers. The vast majority of these jobs (101,870) were in NAICS sector 336611, with the remainder 

(8,520) accounted for by routine maintenance and repair conducted outside of a shipyard (NAICS 

sector 488390).7 

Employment in shipbuilding and repairing is concentrated in a relatively small number of states (see 

Figure 2, below). In fact, as shown in Table 1, below, 63 percent of all private direct employment in 

the industry is located in just five states: Virginia, Mississippi, Louisiana, Connecticut, and 

California. 

7

 These numbers do not include federal government employment. According to the U.S. Bureau of Labor Statistics, total 

employment at federal government-operated shipyards was 30,370 in 2013, down from 30,435 in 2012. 

State with Active Shipyards

State without Active Shipyards
Table 1. -- Total Private Sector Direct Employment in the U.S. Shipbuilding and 

Repairing Industry, Top 10 States in 2013

State 

Private 

Employmenta

Percent of 

U.S. Total 

Virginia 28,210 25.6%

Mississippi 12,720 11.5%

Louisiana 12,230 11.1%

Connecticut 9,030 8.2%

California 7,190 6.5%

Texas 6,060 5.5%

Maine 5,770 5.2%

Alabama 5,590 5.1%

Florida 4,890 4.4%

Washington 3,060 2.8%

All other states combined 15,650 14.2% 

U.S. Total 110,390 100% 

Source: Estimates based on data from the U.S. Census Bureau, U.S. Bureau of Labor Statistics, 

and U.S. Bureau of Economic Analysis. 

Note: Details may not add to totals due to rounding. 

a

 Employment is defined as the number of payroll and self-employed jobs, including part-time jobs.

Figure 2. Private Sector Direct Employment in the U.S. Shipbuilding and Repairing Industry 

by State, 2013 

Source: Estimates based on data from the U.S. Census Bureau, U.S. Bureau of Labor Statistics, and U.S. Bureau of 

Economic Analysis 

0 No Employment

1 1 - 250 

2 250 - 500

3 500 - 1,000 

4 1,000 - 2,500 

5 2,500 - 5,000 

6 5,000 - 10,000

7 More than 10,000 

3

6

1

3

0

4

2

6

3

3

7

1

1

4

1

1

3

5

3

7

4 2

4

3

6

0

7

1

1

1

0

0

0

0

0

0

0 0

1

0

6

1

1

5

6

4

3

1

2

4
The majority of private sector jobs in the U.S. shipbuilding and repairing industry are payroll jobs. In 

2013, payroll employment accounted for 100,593 of the total 101,866 jobs in NAICS sector 336611, 

99 percent of the total. Payroll employment in NAICS 336611 grew rapidly between 2005 and 2008, 

from 90,840 to 104,440 (see Figure 3, below). As a result of the global recession the industry 

contracted, losing more than 9,000 payroll jobs between 2008 and 2011, before rebounding in 2012. 

Payroll employment in NAICS sector 336611 continued its strong growth into 2014, averaging 

103,188 jobs through September 2014. 

Figure 3. -- Private Sector Direct Payroll Employment in the U.S. Shipbuilding and Repairing 

Industry, 2001 to 2012*

Source: Total private sector payroll employment for NAICS sector 336611 from U.S. Bureau of Labor Statistics, 

Quarterly Census of Employment and Wages (Downloaded April 8, 2015). Excludes the portion of the industry classified 

in NAICS sector 488390. 

*Data for 2014 is average for January through September.

2. Labor Income

Total private sector labor income in the U.S. shipbuilding and repairing industry (including wages and 

salaries and benefits as well as proprietors' income) amounted to $9.2 billion in 2013. As with private 

employment, industry labor income is concentrated in a relatively small number of states, with five 

states (Virginia, Mississippi, Connecticut, Lousiana, and California) accounting for nearly 66 percent 

of all direct labor income for the U.S. shipbuilding and repairing industry (see Table 2, below). 

Average labor income per job was approximately $83,166 in 2013, 55 percent higher than the national 

average for the private sector economy ($53,639). 

91,003 91,142 90,820 

92,983 

90,844 

93,507 

99,811 

104,435 

101,251 

96,556 

95,132 

99,023 

100,593 

103,188 

 80,000

 85,000

 90,000

 95,000

 100,000

 105,000

 110,000

Payroll Employment
Table 2. -- Total Private Sector Direct Labor Income in the U.S. Shipbuilding and Repairing 

Industry, Top 10 States in 2013 

State 

Private Labor 

Incomea 

($ millions) 

Percent of 

U.S. Total 

Virginia $2,310.5 25.2%

Mississippi 1,227.5 13.4%

Connecticut 974.9 10.6%

Louisiana 909.4 9.9%

California 618.0 6.7%

Maine 496.7 5.4%

Texas 410.3 4.5%

Alabama 370.2 4.0% 

Florida 319.6 3.5% 

Washington 242.7 2.6%

All other states combined 1,300.6 14.2% 

U.S. Total $9,180.3 100% 

Source: Calculations using the IMPLAN Modeling system (2013 database) and data from 

the U.S. Census Bureau, U.S. Bureau of Labor Statistics, and U.S. Bureau of Economic Analysis. 

Note: Details may not add to totals due to rounding. 

a

 Labor income is defined as wages and salaries, benefits, and proprietors' income. 

3. Capital Expenditures

According to data from the U.S. Census Bureau, the shipbuilding and repairing industry (NAICS 

sector 336611) spent a total of $978.6 million on new and used capital assets in 2013, up from $834.4 

million in 2012. The majority of capital spending for the industry is spending on new structures and 

equipment. In 2013, the industry spent an estimated $928.6 million on new capital assets ($662.9 

million on new equipment and $265.7 million on new structures) and $50.0 million on used structures 

and equipment (see Figure 4, below). 
Figure 4. -- Capital Expenditures by U.S. Shipbuilders, by Type, 2013 (in $ millions) 

4. Industry Output

U.S. shipbuilders delivered 1,067 vessels of all types in 2014, down from 1,147 vessels in 2013 (see 

Table 3, below). Over 80 percent of vessels delivered during the last five years have been inland tank 

and deck barges. Deliveries of inland tank barges and tugs and towboats showed the greatest increase 

in terms of vessels delivered between 2010 to 2014. 

Table 3. -- Deliveries by U.S. Shipyards, by Type of Vessel, 2010-2014 

New Structures, 

$226.9 

New Equipment, 

$662.9 

Used Structures and 

Equipment, $50.0 

Source: Estimates based on data from U.S. Census Bureau, 2012 Economic Census and 2013 Annual Survey of Capital Expenditures.

Type of Vessel 2010 2011 2012 2013 2014

Large Deep-Draft Vessels 16 11 11 8 12 

Offshore Service Vessels and Crew Boats 38 21 28 44 52 

Tugs and Towboats 110 81 119 105 114 

Passenger Vessels (>50 feet) 23 30 33 23 21 

Commercial Fishing Vessels (>50 feet) 20 8 15 27 18 

Other Self-Propelled Vessels (>50 feet) 19 23 25 14 10 

Large Oceangoing Barges 14 6 2 6 2 

Inland Tank Barges 141 185 279 327 311 

Inland Freight and Deck Barges 1,053 861 749 593 527 

Total Delivered 1,201 1,459 1,261 1,147 1,067 

New Construction Contracts* 75 89 84 114 77 

Source: www.shipbuildinghistory.com

Note: The delivery date for a vessel was determined by the date on which its Certificate of Documentation was issued, which 

should be, but may not be, the date on which the shipyard made delivery.

*Announced new construction contracts with U.S. shipyards for self-propelled vessels and oceangoing barges. Excludes inland

barges, tugs, and towboats. Note, each contract may cover the construction of one or more vessel. For example, the 191 contracts

announced in 2013 and 114 cover the construction of 347 new vessels.
While the total number of deliveries by U.S. shipbuilders has fallen in recent years, the number of new 

construction contracts have increased. In 2013, U.S. shipyards announced 114 new construction 

contracts for self-propelled vessels and oceangoing barges, most of which will be delivered in 2015 

and beyond.8 Given the significant lag in construction of many types of vessels, employment in the 

U.S. shipbuilding and repairing industy has continued to grow while deliveries have declined. 

The federal government, including the U.S. Navy, U.S. Army, and U.S. Coast Guard, remains an 

important source of demand for private U.S. shipbuilders. While only 11 of the 1,067 vessels 

delivered in 2014 were delivered to the U.S. government, nearly all (10 out of 12) of the large deepdraft vessels delivered were delivered to U.S. government agencies (five to the U.S. Navy, four to the 

U.S. Coast Guard, and one to the National Science Foundation). Furthermore, 98 out of the 150 new 

vessels ordered from U.S. private shipbuilders in 2014 were for the U.S. military.9

According to the Annual Survey of Manufactures, total revenues for the U.S. shipbuilding and 

repairing industry amounted to $25.7 billion in 2013, up from $25.0 billion in 2012.10 Initial 

estimates from industry sources indicate total revenues of $26.3 billion for the U.S. shipbuilding and 

repairing industry in 2014 and $25.5 billion in 2015, with 70 percent coming from military 

shipbuilding and repair and the remaining 30 percent from commercial shipbuilding and repairs (see 

Figure 5). 

Figure 5. -- Industry Revenues by Product Type, 2015 

8

 New construction contracts can be for a single vessel or for multiple vessels. The 114 contracts announced in 2013 cover 

the construction of 187 new ships to be delivered between 2014 and 2018. 

9

 Based on announced new construction contacts as reported by www.shipbuildinghistory.com. 

10 The Annual Survey of Manufacturers was not published in 2012 due to the Economic Census. As such, 2012 numbers 

are from the 2012 Economic Census. 

Military Ship 

Building and 

Repairs, 

70.1%

Commercial Ship 

Building and 

Repairs, 

29.9%

Source: IBISWorld, "Staying Afloat: Despite a Decline in Orders, Military Shipbuilding and Modernization Will Boost Revenue." 

Industry Report 33661a, March 2015.
Figure 6, below, provides a breakdown of industry costs. The largest expense for ship builders is 

purchases of raw materials and supplies used in the construction and repair of ships, including paints, 

steel plates, copper tubing, aluminum, and iron castings. These purchases account for an estimated 

48.4 percent of total industry costs. Labor costs are the second largest expenditure for the industry, 

amounting to approximately 29.4 percent of industry costs. Depreciation, rent and utilities, and other 

costs represent 22.3 percent of industry costs. 

Figure 6. -- Industry Costs by Type, 2015 

Source: Estimates based on IBISWorld, "Staying Afloat: Despite a Decline in Orders, Military Shipbuilding and 

Modernization Will Boost Revenue." Industry Report 33661a, March 2015. 

Total GDP in the U.S. private shipbuilding and repairing industry (including routine maintenance and 

repairs conducted outside of shipyards) amounted to $10.7 billion in 2013. As with employment, the 

majority of the industry's GDP ($9.9 billion) was related to shipbuilding and repairing tied to 

shipyards (NAICS sector 336611), compared to $0.8 billion for routine maintenance and repairs 

conducted outside of a shipyard (see Figure 7, below). 

48.4%

29.4%

14.9%

4.2%

3.2%

0%

20%

40%

60%

80%

100%

Depreciation

Rent and Untilities

Other

Wages

Purchases
Figure 7. -- Total GDP in U.S. Shipbuilding and Repairing Industry, 2013 

5. Foreign Trade

The value of imports and exports of ships and repair services varies considerably over time, in part 

due to the long lead time associated with manufacturing and delivering finished ships (see Figure 8, 

below). 

Imports of finished ships, inputs, and repair services amounted to $398 million in 2014, down from 

$1.2 billion in 2013. Industry imports are limited by regulation; in particular, the Jones Act (section 

27 of the Merchant Marine Act of 1920) requires that all vessels carrying goods between U.S. ports be 

manufactured (or rebuilt) in the United States and be owned, operated, and crewed by U.S. citizens. 

Additionally, the defense sector remains the industry’s biggest client, accounting for more than 70 

percent of industry revenues. Because defense contracts typically require access to sensitive military 

technology and information, the U.S. government generally limits any foreign involvement in defense 

contracts. 

In contrast, despite an increase in foreign competition, exports by U.S. shipbuilders have strengthened 

in recent years, rising to $1.2 billion in 2014 (representing 4.6 percent of industry revenues). As a 

result, the U.S. shipbuilding industry has run a trade surplus in six out of the last nine years and a 

cumulative trade surplus of $1.5 billion over this period. 

Shipbuilding and 

Repairing at a 

Shipyard, 

$9.9 billion 

Routine 

Maintenance and 

Repairs outside of 

Shipyards, 

$0.8 billion 

Source: Calculations based on the IMPLAN Modeling system (2013 database).
Figure 8. -- Imports and Exports for the U.S. Shipbuilding and Repairing Industry, 2006-2014 

Source: IBISWorld, "Staying Afloat: Despite a Decline in Orders, Military Shipbuilding and Modernization Will Boost 

Revenue." Industry Report 33661a, March 2015. 

$886

$831

$584

$380

$598

$533

$1,478

$701

$1,223

$703

$514

$324

$630

$881

$258

$759

$1,226

$398

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2006 2007 2008 2009 2010 2011 2012 2013 2014

$ Millions

Exports Imports
III.The Economic Impact of the U.S.

Shipbuilding and Repairing Industry

In this study, the economic impact of the U.S. shipbuilding and repairing industry is measured in 

terms of its direct, indirect and induced impacts at the national and state levels. 

The IMPLAN model, an input-output (I-O) model based on Federal government data, is used to 

quantify these linkages.11 The IMPLAN model does not track capital expenditures (such as spending 

on equipment) by industry; consequently, the activity associated with capital spending by the 

shipbuilding and repairing industry has been separately calculated. This detail is only available on a 

national basis. See Appendix C for a more detailed description of the methodology used for this 

study. 

A. National Impact 

In 2013, on a national basis, the U.S. shipbuilding and repairing industry directly provided 110,390 

jobs (see Table 4, below). Including direct, indirect, and induced impacts, approximately 399,420 

jobs were associated with the industry. Total labor income associated with all direct, indirect, and 

induced jobs was $25.1 billion. The industry directly and indirectly was associated with $37.3 billion 

in GDP in 2013. 

Table 4. Economic Importance of the U.S. Shipbuilding and Repairing Industry, 2013 

Direct 

Impacts 

Indirect & Induced Impacts 

Total 

Operational Impacts Impacts 

Capital 

Investment 

Impacts 

Employment a 110,390 277,320 11,710 399,420

Labor Income ($ millions) b $9,180 $15,251 $700 $25,131

GDP ($ millions) $10,689 $25,551 $1,085 $37,325

Source: Calculations using the IMPLAN Modeling system (2013 database) and data from the U.S. Census Bureau, U.S. Bureau of 

Labor Statistics, and U.S. Bureau of Economic Analysis. 

Note: Details may not add to totals due to rounding. 

a

 Employment is defined as the number of payroll and self-employed jobs, including part-time jobs. 

b

 Labor income is defined as wages and salaries and benefits as well as proprietors' income. 

By segment, over 90 percent of the direct economic activity is in the primary industry code, 

shipbuilding and repairing (NAICS 336611), which was responsible for 101,870 direct jobs, paid $8.5 

billion in labor income, and generated $9.9 billion in GDP in 2013. Routine ship maintenance and 

repair activities (part of NAICS 488390) directly accounted for 8,520 jobs, $685 million in labor 

income, and $837 million in GDP (see Table 5, below). 

11 The IMPLAN model is based on input-output (I-O) tables that map the flow of value along the supply chain for the 

different industries in the economy. For example, for the shipbuilding and repairing industry these tables provide the 

value of inputs purchased from other industries that supply the shipbuilding and repairing industry. The supplying 

industries also purchase inputs from other industries to deliver their products; these impacts are also captured. See 

Appendix D for a description of the model. 
Table 5. Direct Economic Impact of the U.S. Shipbuilding and Repairing Industry, 

by Segment, 2013

NAICS Segment Description Employment a Labor Income b GDP 

Amount ($ Millions) ($ Millions) 

336611 Shipbuilding and repairing 101,870 $8,496 $9,852

488390 Routine ship maintenance and repairs 8,520 $685 $837

Total 110,390 $9,180 $10,689

Source: Calculations using the IMPLAN Modeling system (2013 database) and data from the U.S. Census Bureau, U.S. Bureau of Labor Statistics, 

and U.S. Bureau of Economic Analysis. 

a

 Employment is defined as the number of payroll and self-employed jobs, including part-time jobs. 

b

 Labor income is defined as wages and salaries and benefits as well as proprietors' income. 

Most of the indirect and induced economic impact of the industry is associated with the industry’s 

ongoing operations, as its capital expenditures account for less than five percent (see Table 6, below). 

The largest amount of indirect and induced economic activity associated with the industry is in the 

services sector.12 Other signficant indirect and induced activities occur in wholesale and retail trade; 

finance, insurance and real estate; and manufacturing.13 

Considering the indirect and induced impacts, each direct job in the U.S. shipbuilding and repairing 

industry is associated with another 2.62 jobs in other parts of the national economy; each dollar of 

direct labor income and GDP is associated with another $1.74 in labor income and $2.49 in GDP, 

respectively, outside of the shipbuilding and repairing industry . 

12 The services sector, such as management of companies, architectural, engineering, and related services, other 

professional services, employment services, and business support services, received nearly half of the indirect impact due 

to its importance in the supply chain to the shipbuilding and repairing industry. The services sector further received more 

than half of the induced impact from consumer spending attributable to the industry. 

13 Wholesale trade accounted for 7.5 percent of the shipbuilding and repairing industry’s intermediate purchases in 2013. 

Retail trade typically receives a large share of the induced impact from consumer spending. 
Table 6. Indirect and Induced Activities Associated with the U.S. Shipbuilding and Repairing 

Industry, by Industry, 2013 

In 2013 the U.S. shipbuilding and repairing industry generated a total of $2.6 billion in federal, state, 

and local taxes. Including the additional taxes supported by the industry’s supply chain and its 

employees, the industry’s total tax contribution was $8.5 billion in 2013 (see Table 7, below). 

Sector Description Employment a Labor Income 

($ millions) b

GDP 

($ millions)

Direct Impact of the Shipbuilding and Repairing Industry 110,390 $9,180 $10,689

Indirect and Induced Impact on Other Industries 289,040 $15,951 $26,636

 Operational Impact 277,320 $15,251 $25,551

 Agriculture 3,460 $134 $212

 Mining 1,590 $211 $526

 Utilities 1,030 $146 $499

 Construction 2,570 $168 $200

 Manufacturing 28,430 $2,165 $4,077

 Wholesale and retail trade 32,630 $1,663 $2,916

 Transportation and warehousing 13,980 $795 $1,106

 Information 5,680 $574 $1,369

 Finance, insurance, real estate, rental and leasing 31,250 $1,696 $5,319

 Services 143,410 $6,740 $8,145

 Other 13,300 $958 $1,182

 Capital Investment Impact 11,710 $700 $1,085

 Agriculture 110 $4 $6

 Mining 50 $7 $18

 Utilities 30 $4 $14

 Construction 2,870 $184 $206

 Manufacturing 1,740 $134 $222

 Wholesale and retail trade 1,350 $76 $136

 Transportation and warehousing 330 $19 $26

 Information 140 $15 $33

 Finance, insurance, real estate, rental and leasing 820 $42 $140

 Services 3,880 $202 $235

 Other 390 $13 $47

Total Economic Impact 399,420 $25,131 $37,324

Source: Calculations using the IMPLAN modeling system (2013 database).

Note: Details may not add to totals due to rounding

a

 Employment is defined as the number of payroll and self-employed jobs, including part-time jobs.

b

 Labor income is defined as wages and salaries and benefits as well as proprietors' income.
Table 7. Direct, Indirect, and Induced Taxes Supported by the U.S. Shipbuilding and Repairing 

Industry, in $ Millions, 2013 

B. State Impacts 

State-level IMPLAN models were used to estimate the shipbuilding and repairing industry’s state-bystate impacts. The study also estimates interstate spillover effects (i.e., indirect and induced impacts 

in a given state resulting from direct shipbuilding and repair activities in another state). As noted 

above, the state-level estimates only include the industry’s operation impacts and do not include 

capital investment impacts. 

The operations of the shipbuilding and repairing industry directly provided employment in 37 states in 

2013. The five states with the largest direct employment impacts are Virginia, Mississippi, Louisiana, 

Connecticut, and California (see Table 8, below). Operations in these states represented 

approximately 63 percent of total industry operations in 2013. 

Tax Level Tax Category Direct Indirect Induced Total

Corporate Income Taxes $88.2 $305.4 $348.8 $742.4

Personal Income Taxes $780.0 $642.5 $653.1 $2,075.5

Excise Taxes $26.1 $50.6 $78.9 $155.6

Customs Duties $10.8 $20.9 $32.7 $64.4

Social Insurance Contributions $1,041.3 $817.5 $817.4 $2,676.2

Other $2.8 $5.3 $8.3 $16.4

Federal Total $1,949.2 $1,842.2 $1,939.1 $5,730.5

Corporate Income Taxes $12.7 $43.9 $50.1 $106.7

Personal Income Taxes $207.7 $171.1 $173.9 $552.8

Property Taxes $136.4 $264.0 $411.8 $812.3

Sales Taxes $153.2 $296.4 $462.3 $911.8

Social Insurance Contributions $17.5 $13.3 $13.2 $44.0

Other $92.2 $110.2 $142.6 $345.0

State & Local Total $619.7 $898.9 $1,253.9 $2,772.5

$2,568.8 $2,741.1 $3,193.0 $8,503.0

Source: Calculations using the IMPLAN modeling system (2013 database).

Federal

State & Local

Federal, State & Local Total
Table 8. Direct Impact of the U.S. Shipbuilding and Repairing Industry, by State, 2013 

Amount Percent of 

U.S. Total ($ millions) Percent of U.S. Total ($ millions) Percent of U.S. Total

Alabama 5.1% 5,590 $370 4.0% $416 3.9%

Alaska 0.3% 360 $35 0.4% $36 0.3%

Arizona 0.0% - $0 0.0% $0 0.0%

Arkansas 0.1% 90 $6 0.1% $7 0.1%

California 6.5% 7,190 $618 6.7% $724 6.8%

Colorado 0.0% - $0 0.0% $0 0.0%

Connecticut 8.2% 9,030 $975 10.6% $1,087 10.2%

Delaware 10 0.0% $1 0.0% $1 0.0%

District of Columbia 0.0% - $0 0.0% $0 0.0%

Florida 4.4% 4,890 $320 3.5% $385 3.6%

Georgia 0.1% 100 $6 0.1% $7 0.1%

Hawaii 0.7% 780 $118 1.3% $130 1.2%

Idaho 0.0% 30 $3 0.0% $4 0.0%

Illinois 0.4% 400 $32 0.4% $39 0.4%

Indiana 0.9% 1,010 $62 0.7% $74 0.7%

Iowa * 0.0% $1 0.0% $1 0.0%

Kansas 0.0% - $0 0.0% $0 0.0%

Kentucky 0.9% 990 $56 0.6% $62 0.6%

Louisiana 11.1% 12,230 $909 9.9% $1,096 10.3%

Maine 5 5.2% ,770 $497 5.4% $599 5.6%

Maryland 0.4% 440 $32 0.3% $36 0.3%

Massachusetts 0.3% 350 $35 0.4% $40 0.4%

Michigan 0.1% 120 $9 0.1% $10 0.1%

Minnesota 0.0% - $0 0.0% $0 0.0%

Mississippi 11.5% 12,720 $1,227 13.4% $992 9.3%

Missouri 0.8% 840 $43 0.5% $48 0.5%

Montana 0.0% - $0 0.0% $0 0.0%

Nebraska 0.0% - $0 0.0% $0 0.0%

Nevada 0.0% - $0 0.0% $0 0.0%

New Hampshire 0.1% 60 $3 0.0% $3 0.0%

New Jersey 0.5% 530 $40 0.4% $48 0.4%

New Mexico 0.0% - $0 0.0% $0 0.0%

New York 0.6% 610 $77 0.8% $88 0.8%

North Carolina 0.1% 70 $5 0.1% $7 0.1%

North Dakota 0.0% - $0 0.0% $0 0.0%

Ohio 0.4% 480 $22 0.2% $33 0.3%

Oklahoma 0.0% - $0 0.0% $0 0.0%

Oregon 1.1% 1,210 $119 1.3% $124 1.2%

Pennsylvania 1.3% 1,380 $104 1.1% $120 1.1%

Rhode Island 2.1% 2,290 $236 2.6% $231 2.2%

South Carolina 0.7% 830 $58 0.6% $65 0.6%

South Dakota 0.0% - $0 0.0% $0 0.0%

Tennessee 0.5% 580 $55 0.6% $63 0.6%

Texas 5.5% 6,060 $410 4.5% $482 4.5%

Utah 0.0% 20 $5 0.1% $5 0.0%

Vermont 0.0% - $0 0.0% $0 0.0%

Virginia 25.6% 28,210 $2,310 25.2% $3,158 29.5%

Washington 2.8% 3,060 $243 2.6% $301 2.8%

West Virginia * 0.0% $1 0.0% $1 0.0%

Wisconsin 1.9% 2,090 $139 1.5% $166 1.6%

Wyoming 0.0% - $0 0.0% $0 0.0%

U.S. Total 110,390 100% $9,180 100% $10,689 100%

Source: Calculations using the IMPLAN modeling system (2013 database).

Note: Details may not add to totals due to rounding. * indicates less than 5 jobs.

a

 Employment is defined as the number of payroll and self-employed jobs, including part-time jobs.

b

 Labor income is defined as wages and salaries and benefits as well as proprietors' income.

Direct Employment a Direct Labor Income b Direct GDP

State
In six states the total direct, indirect, and induced economic activity associated with the shipbuilding 

and repairing industry amounts round to 1 percent or more of total state employment (see Figure 9, 

below). 

Figure 9. Shipbuilding and Repairing Industry Employment / Total State Employment 

(10 States with Largest Shares, 2013)

Source: Calculations using the IMPLAN modeling system (2013 database). 

In terms of the total number of direct, indirect, and induced jobs, employment associated with the 

operations of the shipbuilding and repairing industry is highest in Virginia, California, Mississippi, 

Louisiana, Texas, Connecticut, and Florida (see Figure 10 and Table 9, below). 

Additional detail is provided in Appendix A.

1.9%

1.8%

1.3%

1.1% 1.0% 1.0%

0.5%

0.3% 0.2% 0.2%

0.0%

0.5%

1.0%

1.5%

2.0%
Figure 10. Total Direct, Indirect, and Induced Employment 

Associated with the U.S. Shipbuilding and Repairing Industry’s Operations 

(10 States with Largest Number of Jobs, 2013)

Source: Calculations using the IMPLAN modeling system (2013 database).

65,310 

34,810 

29,020 28,080 26,490 

22,000 20,500 

14,360 12,800 9,860 

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000
Table 9. Total Direct, Indirect, and Induced Economic Activities Associated with the U.S. 

Shipbuilding and Repairing Industry’s Operations, 2013 

Amount Percent of 

State Total ($ millions) Percent of State Total ($ millions) Percent of State Total

Alabama 12,800 0.5% $683 0.6% $953 0.5%

Alaska 1,070 0.2% $79 0.2% $122 0.2%

Arizona 2,660 0.1% $142 0.1% $242 0.1%

Arkansas 1,450 0.1% $72 0.1% $132 0.1%

California 34,810 0.2% $2,389 0.2% $3,674 0.2%

Colorado 2,550 0.1% $153 0.1% $250 0.1%

Connecticut 22,000 1.0% $1,800 1.2% $2,439 1.0%

Delaware 0.1% $26 0.1% $56 0.1% 400

District of Columbia 520 0.1% $52 0.1% $74 0.1%

Florida 20,500 0.2% $1,053 0.2% $1,586 0.2%

Georgia 4,450 0.1% $241 0.1% $410 0.1%

Hawaii 2,460 0.3% $205 0.4% $274 0.3%

Idaho 0.1% $37 0.1% $62 0.1% 780

Illinois 7,080 0.1% $457 0.1% $737 0.1%

Indiana 4,850 0.1% $272 0.1% $446 0.1%

Iowa 1,660 0.1% $93 0.1% $152 0.1%

Kansas 1,430 0.1% $77 0.1% $124 0.1%

Kentucky 3,890 0.2% $196 0.2% $295 0.2%

Louisiana 28,080 1.1% $1,618 1.2% $2,321 0.9%

Maine 14,360 1.8% $867 2.4% $1,185 2.1%

Maryland 3,310 0.1% $206 0.1% $327 0.1%

Massachusetts 4,090 0.1% $307 0.1% $468 0.1%

Michigan 4,720 0.1% $263 0.1% $420 0.1%

Minnesota 2,970 0.1% $183 0.1% $287 0.1%

Mississippi 29,020 1.9% $1,848 2.8% $2,016 1.9%

Missouri 4,640 0.1% $235 0.1% $368 0.1%

Montana 0.1% $19 0.1% $33 0.1% 450

Nebraska 0.1% $53 0.1% $92 0.1% 960

Nevada 1,350 0.1% $70 0.1% $121 0.1%

New Hampshire 0.1% $48 0.1% $72 0.1% 830

New Jersey 4,870 0.1% $341 0.1% $536 0.1%

New Mexico 740 0.1% $36 0.1% $69 0.1%

New York 9,860 0.1% $793 0.1% $1,255 0.1%

North Carolina 4,330 0.1% $236 0.1% $434 0.1%

North Dakota 420 0.1% $25 0.1% $43 0.1%

Ohio 6,600 0.1% $365 0.1% $617 0.1%

Oklahoma 1,750 0.1% $98 0.1% $161 0.1%

Oregon 4,900 0.2% $309 0.3% $537 0.3%

Pennsylvania 9,210 0.1% $567 0.1% $873 0.1%

Rhode Island 5,970 1.0% $431 1.3% $553 1.0%

South Carolina 3,780 0.2% $196 0.2% $297 0.2%

South Dakota 440 0.1% $22 0.1% $39 0.1%

Tennessee 4,440 0.1% $257 0.1% $388 0.1%

Texas 26,490 0.2% $1,596 0.2% $2,603 0.2%

Utah 1,410 0.1% $75 0.1% $139 0.1%

Vermont 0.1% $16 0.1% $25 0.1% 320

Virginia 65,310 1.3% $4,304 1.5% $6,405 1.4%

Washington 7,900 0.2% $538 0.2% $800 0.2%

West Virginia 0.1% $35 0.1% $61 0.1% 690

Wisconsin 7,850 0.2% $434 0.2% $631 0.2%

Wyoming 0.1% $15 0.1% $37 0.1% 280

U.S. Total 387,710 0.2% $24,431 0.2% $36,240 0.2%

Source: Calculations using the IMPLAN modeling system (2013 database).

Note: Details may not add to totals due to rounding

a

 Employment is defined as the number of payroll and self-employed jobs, including part-time jobs.

b

 Labor income is defined as wages and salaries and benefits as well as proprietors' income.

Employment a Labor Income b GDP

State
Appendices 

Appendix A: Economic Impact Breakdown: State Level Detail 

Tables A1, A2, and A3 provide the state-by-state breakout of the direct, indirect, and induced impacts 

associated with the operations of the U.S. shipbuilding and repairing industry. These results do not 

include the additional indirect and induced economic impact resulting from the industry’s capital 

expenditures. 
Table A1. Employment Associated with the U.S. Shipbuilding and Repairing Industry’s 

Operations, 2013 

State Direct 

Employment

Indirect 

Employment

Induced 

Employment

Total 

Contribution

Total State 

Percentage

Alabama 5,590 4,030 3,180 12,800 0.5%

Alaska 360 310 410 0.2% 1,070

Arizona - 1,080 1,580 0.1% 2,660

Arkansas 90 610 750 0.1% 1,450

California 7,190 12,080 15,550 34,810 0.2%

Colorado - 1,040 1,520 0.1% 2,550

Connecticut 9,030 5,140 7,820 22,000 1.0%

Delaware 10 140 250 400 0.1%

District of Columbia - 190 330 520 0.1%

Florida 4,890 6,890 8,720 20,500 0.2%

Georgia 100 1,760 2,600 0.1% 4,450

Hawaii 780 730 950 0.3% 2,460

Idaho 30 300 450 780 0.1%

Illinois 400 2,920 3,760 0.1% 7,080

Indiana 1,010 2,120 1,720 0.1% 4,850

Iowa * 680 970 0.1% 1,660

Kansas - 580 850 0.1% 1,430

Kentucky 990 1,320 1,590 0.2% 3,890

Louisiana 12,230 7,310 8,540 28,080 1.1%

Maine 5,770 3,460 5,120 14,360 1.8%

Maryland 440 1,120 1,750 0.1% 3,310

Massachusetts 350 1,500 2,240 0.1% 4,090

Michigan 120 2,060 2,550 0.1% 4,720

Minnesota - 1,260 1,710 0.1% 2,970

Mississippi 1 2,720 7,080 9,220 29,020 1.9%

Missouri 840 1,650 2,160 0.1% 4,640

Montana - 150 300 450 0.1%

Nebraska - 360 600 960 0.1%

Nevada - 540 810 0.1% 1,350

New Hampshire 60 340 430 830 0.1%

New Jersey 530 1,830 2,510 0.1% 4,870

New Mexico - 270 470 740 0.1%

New York 610 3,650 5,610 0.1% 9,860

North Carolina 70 1,780 2,490 0.1% 4,330

North Dakota - 150 260 420 0.1%

Ohio 480 2,770 3,340 0.1% 6,600

Oklahoma - 750 1,010 0.1% 1,750

Oregon 1,210 1,580 2,110 0.2% 4,900

Pennsylvania 1,380 3,370 4,460 0.1% 9,210

Rhode Island 2,290 1,430 2,250 1.0% 5,970

South Carolina 830 1,340 1,610 0.2% 3,780

South Dakota - 160 280 440 0.1%

Tennessee 580 1,660 2,200 0.1% 4,440

Texas 6,060 9,260 11,170 26,490 0.2%

Utah 20 580 810 0.1% 1,410

Vermont - 120 200 320 0.1%

Virginia 28,210 16,160 20,940 65,310 1.3%

Washington 3,060 2,850 1,990 0.2% 7,900

West Virginia * 270 420 690 0.1%

Wisconsin 2,090 2,720 3,040 0.2% 7,850

Wyoming - 100 170 280 0.1%

 U.S. Total 110,390 121,550 155,770 387,710 0.2%

Source: Calculations using the IMPLAN modeling system (2013 database).

Note: Details may not add to totals due to rounding. An * indicates less than 5 jobs.

Employment is defined as the number of payroll and self-employed jobs, including part-time jobs.
Table A2. Labor Income Associated with the U.S. Shipbuilding and Repairing Industry’s 

Operations, in $ Millions, 2013 

State Direct Labor 

Income

Indirect Labor 

Income

Induced Labor 

Income

Total 

Contribution

Total State 

Percentage

Alabama $370.2 $185.0 $127.7 $683.0 0.6%

Alaska $34.5 $21.9 $22.6 $79.0 0.2%

Arizona $0.0 $67.2 $74.6 $141.8 0.1%

Arkansas $5.6 $33.9 $32.2 $71.6 0.1%

California $618.0 $899.7 $871.1 $2,388.7 0.2%

Colorado $0.0 $73.3 $79.3 $152.6 0.1%

Connecticut $974.9 $382.4 $442.5 $1,799.8 1.2%

Delaware $0.7 $11.0 $14.5 $26.2 0.1%

District of Columbia $0.0 $21.5 $30.4 $51.9 0.1%

Florida $319.6 $353.4 $380.0 $1,053.0 0.2%

Georgia $5.8 $106.6 $128.3 $240.7 0.1%

Hawaii $117.7 $41.9 $45.0 $204.6 0.4%

Idaho $2.6 $15.7 $18.7 $37.0 0.1%

Illinois $32.2 $213.0 $212.1 $457.2 0.1%

Indiana $61.8 $129.1 $81.6 $272.4 0.1%

Iowa $0.7 $43.7 $48.4 $92.7 0.1%

Kansas $0.0 $35.8 $41.1 $76.8 0.1%

Kentucky $56.3 $71.8 $68.0 $196.1 0.2%

Louisiana $909.4 $352.4 $356.5 $1,618.3 1.2%

Maine $496.7 $158.7 $211.5 $867.0 2.4%

Maryland $31.5 $79.3 $95.2 $206.0 0.1%

Massachusetts $35.1 $131.0 $140.9 $307.0 0.1%

Michigan $9.2 $132.9 $120.6 $262.7 0.1%

Minnesota $0.0 $90.5 $92.7 $183.2 0.1%

Mississippi $1,227.5 $279.7 $340.8 $1,848.0 2.8%

Missouri $42.5 $94.2 $98.4 $235.2 0.1%

Montana $0.0 $7.3 $11.8 $19.2 0.1%

Nebraska $0.0 $22.3 $31.0 $53.3 0.1%

Nevada $0.0 $31.2 $38.9 $70.0 0.1%

New Hampshire $3.3 $23.3 $21.7 $48.3 0.1%

New Jersey $40.4 $145.0 $155.4 $340.9 0.1%

New Mexico $0.0 $15.3 $20.3 $35.5 0.1%

New York $77.0 $328.7 $386.9 $792.5 0.1%

North Carolina $5.4 $111.4 $119.1 $235.9 0.1%

North Dakota $0.0 $10.3 $15.2 $25.5 0.1%

Ohio $22.0 $178.9 $163.5 $364.5 0.1%

Oklahoma $0.0 $48.2 $49.4 $97.6 0.1%

Oregon $119.1 $95.9 $93.7 $308.7 0.3%

Pennsylvania $104.4 $228.0 $234.9 $567.3 0.1%

Rhode Island $236.1 $85.3 $109.9 $431.2 1.3%

South Carolina $57.5 $71.6 $67.4 $196.5 0.2%

South Dakota $0.0 $8.7 $13.6 $22.3 0.1%

Tennessee $54.5 $95.5 $106.9 $256.9 0.1%

Texas $410.3 $608.7 $576.7 $1,595.6 0.2%

Utah $5.3 $33.8 $35.7 $74.8 0.1%

Vermont $0.0 $7.2 $8.5 $15.8 0.1%

Virginia $2,310.5 $1,016.2 $977.3 $4,304.0 1.5%

Washington $242.7 $185.3 $109.5 $537.6 0.2%

West Virginia $0.5 $16.1 $18.3 $35.0 0.1%

Wisconsin $139.0 $156.8 $138.5 $434.2 0.2%

Wyoming $0.0 $6.8 $8.4 $15.3 0.1%

U.S. Total $9,180.3 $7,563.7 $7,687.2 $24,431.2 0.2%

Source: Calculations using the IMPLAN modeling system (2013 database).

Note: Details may not add to totals due to rounding

Labor income is defined as wages and salaries and benefits as well as proprietors' income.
Table A3. GDP Associated with U.S. Shipbuilding and Repairing Industry’s Operations, 

in $ Millions, 2013 

State Direct GDP Indirect GDP Induced GDP Total GDP Total State 

Percentage

Alabama $416.5 $304.5 $231.7 $952.6 0.5%

Alaska $36.3 $41.1 $44.5 $122.0 0.2%

Arizona $0.0 $112.4 $129.8 $242.2 0.1%

Arkansas $6.7 $64.4 $60.6 $131.7 0.1%

California $723.9 $1,443.5 $1,506.8 $3,674.3 0.2%

Colorado $0.0 $116.4 $134.0 $250.4 0.1%

Connecticut $1,087.1 $598.5 $753.4 $2,439.0 1.0%

Delaware $0.8 $22.9 $32.1 $55.8 0.1%

District of Columbia $0.0 $29.0 $44.6 $73.6 0.1%

Florida $385.1 $553.3 $647.4 $1,585.8 0.2%

Georgia $7.4 $179.5 $223.4 $410.3 0.1%

Hawaii $130.2 $65.7 $78.3 $274.3 0.3%

Idaho $3.8 $27.9 $30.7 $62.4 0.1%

Illinois $39.0 $339.5 $358.4 $736.9 0.1%

Indiana $73.5 $218.3 $154.3 $446.1 0.1%

Iowa $0.6 $67.5 $84.4 $152.5 0.1%

Kansas $0.0 $54.8 $69.0 $123.8 0.1%

Kentucky $61.8 $114.8 $118.9 $295.5 0.2%

Louisiana $1,096.1 $582.2 $642.6 $2,320.9 0.9%

Maine $598.7 $230.2 $355.8 $1,184.7 2.1%

Maryland $35.9 $126.7 $164.2 $326.7 0.1%

Massachusetts $40.4 $205.8 $222.3 $468.5 0.1%

Michigan $9.9 $204.6 $205.6 $420.1 0.1%

Minnesota $0.0 $139.4 $147.8 $287.3 0.1%

Mississippi $992.2 $429.5 $593.9 $2,015.6 1.9%

Missouri $48.3 $150.4 $169.5 $368.2 0.1%

Montana $0.0 $12.8 $20.3 $33.1 0.1%

Nebraska $0.0 $38.3 $53.2 $91.5 0.1%

Nevada $0.0 $51.4 $69.4 $120.7 0.1%

New Hampshire $3.5 $34.0 $34.9 $72.5 0.1%

New Jersey $48.0 $226.1 $261.5 $535.6 0.1%

New Mexico $0.0 $31.1 $37.8 $68.9 0.1%

New York $87.7 $513.1 $653.8 $1,254.6 0.1%

North Carolina $6.8 $202.2 $224.6 $433.6 0.1%

North Dakota $0.0 $18.9 $24.5 $43.4 0.1%

Ohio $33.1 $294.6 $289.1 $616.8 0.1%

Oklahoma $0.0 $78.2 $83.0 $161.2 0.1%

Oregon $123.9 $251.3 $161.9 $537.2 0.3%

Pennsylvania $119.6 $366.3 $386.7 $872.6 0.1%

Rhode Island $230.6 $131.0 $191.0 $552.6 1.0%

South Carolina $65.1 $115.0 $117.0 $297.1 0.2%

South Dakota $0.0 $15.6 $23.3 $38.9 0.1%

Tennessee $63.4 $152.3 $172.5 $388.2 0.1%

Texas $481.9 $1,088.2 $1,032.5 $2,602.6 0.2%

Utah $4.6 $69.1 $65.3 $139.0 0.1%

Vermont $0.0 $10.8 $14.1 $24.8 0.1%

Virginia $3,158.4 $1,534.1 $1,712.2 $6,404.7 1.4%

Washington $301.0 $302.2 $196.3 $799.5 0.2%

West Virginia $0.5 $27.8 $32.8 $61.1 0.1%

Wisconsin $166.1 $231.5 $233.3 $630.9 0.2%

Wyoming $0.0 $17.6 $19.8 $37.4 0.1%

U.S. Total $10,688.6 $12,236.4 $13,314.7 $36,239.7 0.2%

Source: Calculations using the IMPLAN modeling system (2013 database).

Note: Details may not add to totals due to rounding
Appendix B: Data Sources and Methodology 

This Appendix describes the methodology used to derive the results for the study. It first discusses 

the data sources used to develop the estimates of the shipbuilding and repairing industry's direct 

economic impacts. It then describes the development of the indirect and induced impact estimates for 

the industry.

I. Estimates of the Industry's Direct Economic Impacts 

The definition of the U.S. shipbuilding and repairing industry is based on the North American Industry 

Classification System (NAICS) and combines NAICS sector 336611 ("Shipbuilding and repairing") 

and a portion of NAICS sector 488390 ("Other support activities for water transportation"). Among 

other activities, NAICS sector 488390 includes routine repair and maintenance of ships from floating 

drydocks, as well as related activities not done in a shipyard. 

This study uses data on employment and self-employment from the U.S. Bureau of Labor Statistics 

(BLS) and Bureau of Economic Analysis (BEA) to estimate direct employment in NAICS sectors 

336611 and 488390. In particular, direct employment was estimated by combining counts of payroll 

employees from the BLS’ Quarterly Census of Employment with estimates of self-employment based 

on data from the BEA. For some states, the count of payroll employees was suppressed because of the 

small number of establishments in the industry in the state. Relying on employment counts available 

for the sector at the national-level and for higher-level industries at the state-level, a two-stage 

"raking" process was used to estimate the state-level employee count. The raking process uses 

information from known sectors within a state and across states to impute information for the sectors 

with suppressed data.14 Because the BEA data are only available for more aggregated industries, selfemployment was first estimated for the aggregated industries and then allocated across the subsectors 

according to each industry’s share of paid employment. 

Direct employment was separately estimated for the US as a whole and for each of the 50 states and 

the District of Columbia. The state-level estimates were then scaled to match the national level 

estimates. 

As noted above, only a portion of NAICS sector 488390 is part of the shipbuilding and repairing 

industry. Based on data from the 2012 Economic Census, it is estimated that approximately 84.2 

percent of the employment in NAICS sector 488390 is for routine repair and maintenance of ships not 

conducted at a shipyard. As such, the initial estimates of employment in NAICS sector 488390 (based 

on the BLS and BEA data) were multiplied by 84.2% to derive our final estimates of direct 

employment. 

A similar approach was used to estimate the national direct labor income associated with the 

industry’s direct employment. The IMPLAN model was used to estimate the industry’s direct GDP at 

the national and state levels.. The state-level direct labor income was first estimated using the 

IMPLAN state models, and then controlled to the national direct labor income estimate. 

Estimates of the U.S. shipbuilding and repairing industry's new capital investment in 2013 were 

developed using data from the Census Bureau's Annual Capital Expenditure Survey and the 2012

Economic Census. In particular, expenditures on new capital for "other transportation equipment 

manufacturing" (comprised of NAICS sectors 3365, 3366, and 3369) were obtained from the 2013 

14 Oh, H.L. and Scheuren, F. (1987). Modified Raking Ratio Estimation. Survey Methodology, vol. 13, no. 2, pp. 209-219. 
Annual Capital Expenditure Survey database. The ratio of total capital spending in shipbuilding and 

repairing (NAICS sector 336611) to other transportation equipment manufacturing from the 2012 

Economic Census was used to estimate the portion of new capital investment in other transportation 

equipment manufacturing that is attributable to shipbuilding and repairing. 

The U.S. shipbuilding and repairing industry's capital investment was translated into purchases of 

capital assets by type through use of the "capital flow matrix" from the U.S. Department of 

Commerce.15

II. Estimates of Indirect and Induced Economic Activities

The initial round of output, income, and employment generated by shipbuilding and repairing leads to 

successive rounds of re-spending in the chain of production. Such indirect and induced economic 

impacts by the shipbuilding and repairing industry can be measured using various approaches. The 

most common is multiplier analysis. In broad terms, a multiplier is an index that indicates the overall 

change in the level of economic activity that results from a given initial change. It effectively adds up 

all the successive rounds of re-spending, based on a number of assumptions that are embedded in the 

method of estimation. 

There are different methods available for calculating multipliers. The method used in this report is 

input-output analysis. It is the most commonly used approach in regional economic impact studies. 

The input-output model developed by IMPLAN is one of the best known input-output models for 

regional economic studies in the United States and is widely used by government, academics and 

private-sector researchers. The IMPLAN modeling system is similar to the Regional Input-Output 

Modeling System developed by the U.S. Department of Commerce. The system has been in use since 

1979. 

The IMPLAN database represents a consistent set of economic data processed from various published 

sources (such as the Bureau of Economic Analysis's National Income and Product Accounts (NIPA) 

and Regional Economic Information System (REIS), the Census Bureau's County Business Patterns

(CBP), and the Bureau of Labor Statistics' Covered Employee and Wages Program (CEW) in a 

variety of formats and under varying disclosure restrictions. 

Estimates of indirect and induced economic impacts by the U.S. shipbuilding and repairing industry 

were derived based on the IMPLAN model for the national economy and its regional models for each 

of the 50 states and the District of Columbia. 

IMPLAN uses an "input-output" framework that relates the output of each industry to inputs 

purchased from other industries. Output in one industry requires purchases of inputs from other 

industries, and these supply industries in turn make purchases from their suppliers, and so on. 

Employees and business owners make personal purchases out of the income that is generated by this 

process, which ripple through the economy. Multipliers describe these relationships. The Type I 

multiplier measures the direct and indirect effects of a change in economic activity. It captures the 

inter-industry effects only, i.e., industries buying from local industries. The Type II (Social 

Accounting Matrix or SAM) multiplier captures the direct and indirect effects and, in addition, it also 

reflects induced effects. The indirect and induced impacts of the shipbuilding and repairing industry 

15 http://www.bea.gov/newsreleases/industry/capflow/capitalflownewsrelease.htm 
on other sectors of the economy in terms of employment, labor income (including wages and salaries 

and benefits as well as proprietors' income), and GDP were calculated using the IMPLAN model.16 

Because individual state models do not account for cross-state impacts, the sum of the state indirect 

and induced impacts will not add to the national totals. The indirect and induced effects crossing state 

borders ("cross-state spillover effects") were allocated across the 50 states and the District of 

Columbia in proportion to each state's share of the total national employment, labor income, and GDP 

in each industry. The state indirect and induced effects reported throughout this study include such 

allocation of the cross-state spillover effects. 

16 Because the IMPLAN models are used for total impact analysis (as opposed to marginal impact analysis) in this study, 

necessary adjustments are made to the initial indirect and induced impact estimates to prevent double-counting. For 

instance, any indirect or induced effects from the initial estimates for IMPLAN sectors that are fully mapped to the 

shipbuilding and repairing industry are removed. Similarly, indirect and induced effects for IMPLAN sectors that are 

partially mapped to the shipbuilding and repairing industry are proportionately adjusted. 
Appendix C: Description of IMPLAN Model 

IMPLAN is a well known modeling system developed by IMPLAN Group LLC for estimating 

economic impacts and is similar to the Regional Input-Output Modeling System developed by the 

U.S. Department of Commerce. The model is primarily based on government data sources. It can 

address a wide range of impact topics in a given region (county, state, or the country as a whole). 

IMPLAN is built around an “input-output” table that relates the purchases that each industry has made 

from other industries to the value of the output of each industry. To meet the demand for goods and 

services from an industry, purchases are made in other industries according to the patterns recorded in 

the input-output table. These purchases in turn spark still more purchases by the industry's suppliers, 

and so on. Meanwhile, employees and business owners make personal purchases out of the additional 

income that is generated by this process, further increasing demand that ripples through the economy. 

Multipliers describe these iterations. The Type I multiplier measures the direct and indirect effects of a 

change in economic activity. It captures the inter-industry effects only, i.e., industries buying from 

local industries. The Type II (Social Accounting Matrix or SAM) multiplier captures the direct and 

indirect effects. In addition, it also reflects induced effects (i.e., changes in spending from households 

as income increases or decreases due to the changes in production). 

More information on IMPLAN is available at www.implan.com.