Japan's shipbuilding industry continues to decline, Japanese media: The core issue is not just technology, but also a shortage of labor

According to the latest data released by the Japan Ship Exporters' Association, new export ship orders signed in fiscal year 2025 in Japan reached 9.04 million gross tons, a year-on-year decrease of 15%, marking the fourth consecutive year of decline. At the same time, the Japanese government has set a goal to increase the domestic shipbuilding volume to 18 million gross tons by 2035, nearly doubling the 2024 figure. Analysis by Yahoo News indicates that, based on the current state of the industry, achieving this target presents significant challenges. The decline of Japan’s shipbuilding industry is reflected in the continuous shrinkage of both orders and global market share. Japan's shipbuilding industry long held the largest global market share worldwide, but by 2024 it had fallen to third place, accounting for only about 8%. Japanese media analysis suggests that the core challenge currently facing the industry is not only technical, but also includes a severe shortage of labor. Many Japanese shipyards are now unable to fully utilize their dock facilities. The operating rate at Tsuneishi Shipbuilding’s main factory in Tsuneishi has dropped by about 40% from its peak, partly due to a lack of skilled workers and engineers. Some companies have even begun to expand their overseas production bases to maintain building capacity in areas where obtaining engineers is easier.