Matt Paxton, President of the Shipbuilders Council of America (SCA) and Partner in Charge of Adams & Reese's Washington, D.C. office, and Paula Zorensky, Adams & Reese Government Relations Advisor and Vice President of SCA, recently appeared on the Offshore Marine Service Association's (OMSA) Maritime in America podcast. Hosted by OMSA President and CEO Aaron Smith, the episode explored the current state of the U.S. shipyard industrial base, the impact of Jones Act waivers, and the policy landscape shaping the future of American shipbuilding.
SCA is the national trade association representing approximately 40 shipyard companies operating roughly 80 facilities nationwide, along with about 150 supplier and service provider partner members.
Shipyard Capacity and the Demand Question
A central theme was the relationship between shipyard capacity and market demand. Zorensky explained that capacity follows demand, pointing to aircraft carrier construction as an example. Paxton reinforced the point by citing the Gulf Coast, where the Jones Act framework once supported a thriving commercial shipbuilding sector. He pointed to the 2010 tanker fleet recapitalization as proof that industry responds quickly when legal certainty and demand align.
Jones Act Waivers and Market Uncertainty
Both raised concerns about the chilling effect of recent Jones Act waivers on investment in new vessel construction. Paxton noted that financial markets view the current policy environment as a risk, slowing down momentum in segments poised for growth. The ripple effects extend beyond shipyards to the broader supply chain, the mariner workforce, and security-critical fleets.
Government Action and Industry Advocacy
Paxton and Zorensky addressed legislative efforts to strengthen the maritime industrial base, including the National Defense Authorization Act, the Maritime Action Plan, the Ships for America Act, and the American Offshore Worker Fairness Act. Both emphasized that the commercial and defense sides of shipbuilding are deeply interconnected.
The key to effective advocacy, Paxton and Zorensky noted, is strong working relationships among SCA, OMSA, and other maritime stakeholders. They highlighted these partnerships as central to educating lawmakers about shipyards' local economic impact and workforce development.
The full episode is available on the Maritime in America podcast.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]
