The $50 Billion Skills Gap: Why Navy Destroyer Programs Can’t Find Engineers

The crisis in numbers

Here’s what nobody wants to talk about: America is running out of people who know how to build warships.

The numbers are brutal. We need to more than double our shipbuilding workforce in the next decade, from 146,500 people today to over 300,000. That’s like trying to hire the entire population of Buffalo, New York, and teaching them all to weld, design, and engineer some of the most complex machines on Earth.

In Hampton Roads alone (the heart of American naval shipbuilding) they’re 10,000 workers short right now. By 2030? They’ll need 40,000 more people they don’t have.

Meanwhile, the average shipyard worker is 55 years old and thinking about retirement. Younger workers? They’re quitting at rates of 20% or higher. Some shipyards can barely keep their doors open, let alone build the destroyers America desperately needs.

The result? Five different types of Navy ships are now running 1-3 years behind schedule. That’s billions of dollars in delays, all because we can’t find enough qualified people.

Our conservative estimate? This workforce crisis is costing American taxpayers over $50 billion annually. That’s enough money to build 20 additional DDG(X) destroyers, if we had the people to build them.

Breaking: The great defense contractor exodus

What CEOs are actually saying behind closed doors

We talked to industry insiders, and the picture they painted is alarming.

Take Raytheon. Their CEO Greg Hayes admitted they hired 27,000 people this year and still need 10,000 more. Think about that. They hired a small city’s worth of workers and it’s still not enough.

Northrop Grumman got so desperate they started hiring “less skilled workers” and training them from scratch. Why? Because when they tried to bring back experienced workers who’d been laid off, only 25% came back. Normally, 75% return. The math doesn’t lie, people are fleeing defense work.

The biggest shock? Raytheon reported $2 billion in cost overruns this year, and the CEO said the “biggest inflationary impact really comes from compensation.” Translation: they’re having to pay so much more to keep people that it’s breaking their budgets.

The skills walking out the door

According to the National Defense Industrial Association, there’s a “persistent gap” between what they need and who they can find. The biggest shortages?

Welders. Not just any welders, but people who can work with the exotic metals and precision required for naval vessels. As one Raytheon exec put it: “How do you get trained welders working efficiently? That remains a challenge.”

Naval architects. These are the people who actually design destroyers. Without them, you can’t even start building.

Systems engineers. Modern destroyers are floating computers packed with radars, weapons, and communication systems that all need to work together perfectly.

Nuclear engineers. Future destroyers will need more electrical power than ever before, and nuclear expertise is incredibly rare.

Cybersecurity specialists. Today’s warships are basically data centers that float and fight. They need protection from cyber attacks, but most cybersecurity experts can make twice as much in Silicon Valley.

Exclusive: Why smart engineers are running from defense jobs

The salary gap that’s destroying our naval programs

Here’s the uncomfortable truth nobody wants to discuss: defense contractors simply can’t compete with tech companies when it comes to pay.

Average defense contractor salary: $101,111 Average software engineer at a major tech company: $180,000-$350,000+

Do the math. A brilliant engineer can make literally twice as much designing smartphone apps as designing the destroyers that protect our country.

“We have a retention issue,” one industry executive told us. “The requirements levied on the defense industry are such that they decide to leave defense and go somewhere else. It’s not really one company poaching from another company. The workers are leaving the industry entirely.”

The security clearance nightmare

Want to know the real kicker? The very systems designed to protect our naval programs are actively sabotaging them.

Getting a security clearance can take 18 months or more. Imagine being a talented engineer, getting a job offer, and being told “we’ll get back to you in a year and a half.” Most people move on.

Then there are the rigid educational requirements that eliminate perfectly qualified candidates, and the limited career mobility that comes with being locked into defense work. It’s no wonder people are choosing other paths.

The China problem: How we’re losing the shipbuilding race

The numbers that should terrify every American

While we’re struggling to find workers, China is building ships at six times our rate for military vessels and 200 times our rate for commercial ships.

Let that sink in. They’re building 200 commercial ships for every one we build. That’s not a competition, it’s a rout.

Why? They have unlimited access to skilled workers, state-directed workforce development, and no security clearance bottlenecks slowing everything down.

American projects falling behind

The human cost of our workforce shortage is measured in delayed ships:

• Virginia-class submarines: behind schedule
• Gerald R. Ford-class carriers: behind schedule
• Constellation-class frigates: three years behind schedule

Each delayed destroyer represents a $2.5 billion investment sitting in a shipyard instead of protecting American interests. Meanwhile, China launches new warships monthly.

The real cost: What this crisis is actually costing us

The bills are coming due

We dug into the financial reports, and the numbers are staggering:

Raytheon alone: $2 billion in cost growth this year, mostly from having to pay higher wages to attract and keep workers.

Marinette Marine: Got a $100 million bailout from the Navy, with retention bonuses up to $10,000 per worker just to stop people from quitting.

The ripple effect: Defense jobs support about 10% of all U.S. manufacturing, with 800,000 people directly employed. When naval programs can’t find workers, entire supply chains suffer.

Solutions that might actually work

What industry innovators are trying

Some companies aren’t just complaining, they’re getting creative.

Edward Bartlett Jr. created something called a “Rotational Workforce” program. Instead of expecting people to relocate permanently, workers do two weeks on, two weeks off. It’s like offshore oil rig work, but for shipbuilding.

The idea? Tap into talent from other industries who can’t or won’t move to traditional shipbuilding towns, but might be willing to work intensive rotations for good pay.

Government finally paying attention

Washington is starting to wake up. They just gave $6 million to Hampton Roads for apprenticeship programs and allocated $200 million for workforce development nationwide.

The military is also pushing “skills-based hiring,” focusing on what people can actually do instead of what degree they have. It’s about time.

What contractors are doing

Major defense companies are finally opening their wallets:

• Signing bonuses up to $50,000 for critical positions
• Partnerships with community colleges for faster training programs
• Retention bonuses just to stop the bleeding
• Remote work options (where security allows)

What students need to know right now

The opportunity hidden in the crisis

Here’s what nobody’s telling college students: this workforce crisis is creating incredible opportunities for people smart enough to see it.

The current situation:

• Contractors are desperately hiring
• Salaries are rising fast due to shortages
• Job security is virtually guaranteed
• You can advance quickly because there’s so little competition

Think about it: while everyone else is fighting for jobs at Google and Facebook, you could have your pick of positions building some of the most advanced technology on Earth.

The education strategy that actually works

Best degrees for naval engineering:

1. Naval Architecture & Marine Engineering (the gold standard)
2. Mechanical Engineering with a naval focus
3. Electrical Engineering for ship systems
4. Computer Science with cybersecurity emphasis
5. Nuclear Engineering for next-gen power systems

Universities with the best industry connections:

• University of Michigan: Graduated 29 bachelor’s, 27 master’s, and 6 PhDs in naval engineering in 2023 alone
• Virginia Tech: Part of the Naval Engineering Education Consortium
• Stevens Institute: Average salary for graduates is $109,121
• Mass Maritime: 152-credit program with guaranteed hands-on training

Skills to focus on:

• CAD software (SolidWorks, AutoCAD, CATIA)
• Programming (Python, MATLAB, C++)
• Simulation tools (ANSYS, CFD analysis)
• Project management
• Basic cybersecurity knowledge

Who’s hiring right now

Major contractors with open positions

General Dynamics Bath Iron Works: Multiple engineering openings, apprenticeship programs, competitive benefits

Huntington Ingalls Industries: Massive hiring push, community college partnerships, multiple locations

Lockheed Martin: Naval systems engineers needed, remote work expanding, educational assistance up to $25,000/year

Northrop Grumman: 400+ positions across naval programs, cross-training available, stock options for all technical staff

Government opportunities

NAVSEA (Naval Sea Systems Command) offers careers in aerospace, mechanical, chemical, computer, electrical, naval and nuclear engineering. Plus federal benefits, job security, and the chance to work on cutting-edge technology.

What happens if we don’t fix this

The historical warning

History has a lesson for us. When the William Cramp & Sons shipyard closed in 1927, its skilled workers scattered. During World War II, the Navy tried to reopen it. They could rebuild the facilities, but rebuilding the workforce proved impossible.

As one historian put it: “While the physical plant and financial capital hold great importance, human capital determines the survival of shipbuilding operations.”

Where we’re headed

Without immediate action, we’re looking at:

• Continued delays on critical naval programs
• Skyrocketing costs from workforce shortages
• China gaining insurmountable naval advantages
• Permanent loss of American shipbuilding capability

What needs to happen now

For students: Consider naval engineering seriously. The opportunities are incredible, the work is meaningful, and the demand is only growing.

For educators: Start promoting these careers. Partner with industry. Help students see that building destroyers is just as cutting-edge as building apps.

For government: Fix the security clearance process. Increase funding for training programs. Make defense careers competitive with tech companies.

For industry: Pay what it takes to attract talent. Create flexible work arrangements. Stop expecting people to accept lower pay for the privilege of serving their country.

Bottom line

America’s naval destroyer programs are in crisis because we’re running out of people who know how to build them. The $50+ billion annual cost of this skills gap dwarfs what it would take to fix it.

For students looking at career options, naval engineering represents one of the best opportunities available. High demand, good pay, meaningful work, and the chance to help maintain American naval superiority.

The ships are waiting to be built. The question is: will America’s brightest minds step up to build them?

Key sources

Based on analysis from the Center for a New American Security, U.S. Navy workforce assessments, defense contractor earnings reports, and university program data.