American Workers and the Race Against China

American workers are tasked with staying competitive against China, but there simply aren’t enough of them. An expert highlights the need for skilled labor in advanced sectors like semiconductor manufacturing and shipbuilding, emphasizing that both “ships and chips” face significant risks.

Navy Secretary John Phelan pointed out during a July 16 speech in Detroit, “We’ve spent the last 10 years teaching people how to code. We need to teach people how to use their hands for the next 10 years.” This suggests a shift in focus back to manual, skilled labor.

Manufacturing Investment Concerns

A recent report warns that tariff uncertainties could jeopardize $49 billion in U.S. manufacturing investments. Workers in various roles—like seafarers, engineers, and process managers—are essential for ensuring America remains competitive against China. While factories and foundries indeed employ advanced technology, hands-on labor remains vital.

Trump has highlighted that “All the Trump administration policies are designed to lift American workers, promote large-scale blue-collar jobs, and rebuild our country’s industrial base.” The face of American labor is changing, but the core needs of skilled craftsmanship still endure. Workers across the board, from crane operators to those managing lithography machines, are key to this mission.

Despite the growth in the shipbuilding and semiconductor sectors, America is undervaluing its manufacturing capabilities. The workforce in this area has dwindled significantly, with only 3% of the population now involved in manufacturing, down from 9% during the Cold War. COVID-19 exacerbated these challenges, leading to job losses even though states like Texas and Florida have added manufacturing jobs post-pandemic.

If this trend continues, the decrease in manufacturing jobs could threaten America’s economic and security stance.

Navy Workforce Needs

The U.S. Navy, which currently trails the Chinese Navy in size, requires 250,000 new workers over the next decade to support maintenance, construction, and repairs. The growing demand for new submarines and other vessels raises concerns about labor shortages threatening maritime dominance—more so than China itself.

Raising wages for blue-collar workers is a crucial priority. Trump noted that these wages are increasing at the fastest rate in 60 years, noting that skilled welders of nuclear submarines should earn significantly more than those in fast food or delivery jobs. The shipyards are also on the lookout for experienced artisans to enhance their workforce.

Semiconductor Manufacturing Challenges

The U.S.’s share of the global semiconductor manufacturing industry has plummeted from 40% in 1990 to just 12% in 2020. By 2030, semiconductor-related employment is projected to grow by 33%, yet 146,000 positions will remain unfilled due to a lack of qualified candidates. Both conventional chips and advanced composite chips for defense require more workers.

The manufacturing revival offers some hope; investments in new facilities have doubled since 2022, which could lead to efficiencies and sustainable improvements in shipyards. Labor Secretary Lori Chavez Deremer views these efforts across various states as returning to the core of the economic agenda, enhancing job training and apprenticeship opportunities.

America’s prosperity and security hinge on the talents and commitment of its workers, who are at the frontline of the competition against China.