The paychecks offered at U.S. shipyards are under fresh scrutiny after Navy Secretary John Phelan warned that low wages are making it harder to find and keep the workers needed to build warships. His message is simple: if shipbuilders earn roughly what they could make at Buc-ee’s or Amazon, many will walk away from the yards.
At a recent defense summit in Fort Wayne, Indiana, the Navy’s top civilian official framed shipyard pay as a central problem for both naval readiness and the broader industrial base. He argued that wage levels across states are a major obstacle to building the skilled workforce required for specialized, physically demanding jobs in the shipbuilding sector.
Why Navy shipyard wages struggle to compete with Buc-ee’s and Amazon jobs
Officials and industry experts have long pointed to pay as one of the biggest weaknesses in U.S. shipbuilding. The work is difficult, often involving welding and other trades in tight, uncomfortable spaces, yet the paycheck can look similar to what workers are offered in retail or logistics. If a worker can earn comparable money at a highway convenience store or a warehouse, why sign up for years of tough shipyard labor?
The comparison with Buc-ee’s and Amazon highlights that tension. Buc-ee’s declined to reveal detailed average salaries, but a major job-search platform shows general retail staff there earning somewhere in the mid-teens to mid‑twenties per hour. Amazon has reported that its U.S. fulfillment and transportation employees make, on average, more than $23 an hour, with some roles paying even more.
Phelan’s concern is that when those figures sit next to undisclosed but often modest shipyard wages, the shipbuilding industry loses its appeal. Some unions contacted by Business Insider declined to discuss pay, underlining how much compensation can vary by role and location and how sensitive the subject has become.
To illustrate the comparison that worries the Navy, the available information can be summarized as follows:
| Employer / sector | Public hourly pay information mentioned in reports |
| Buc-ee’s retail positions | Job postings suggest roughly $15 to $25 an hour |
| Amazon fulfillment/transport | Company data says average pay above $23 an hour in these operations |
| U.S. shipyards (various) | Detailed figures not disclosed; pay varies widely by role and site |
This pay landscape helps explain why Phelan sees wages as a core strategic issue, not just a human resources problem. Without a competitive offer, recruiting new welders, electricians, and other specialists becomes a constant uphill battle.
Higher pay, better training and benefits seen as keys to fixing Navy shipyard workforce shortages
Experts in naval affairs have repeatedly warned that low wages are undermining both hiring and retention at U.S. shipyards. The Government Accountability Office has reported that yards are struggling to replace seasoned workers who leave, eroding the stock of hard‑won expertise. Companies have noted a drop in experience levels across the industry. The result is more time spent training new hires, weaker retention, and a loss of institutional knowledge.
Several potential solutions have been identified alongside pay increases. They go beyond the paycheck and aim to make shipyard careers more sustainable over the long term:
- Improving day‑to‑day working conditions and overall quality of life inside the yards
- Expanding automation and upgrading training so workers can develop in-demand skills
- Encouraging affordable housing options close to major shipbuilding centers
- Boosting benefits to make these jobs more competitive with other employers
After the post–Cold War contraction, the U.S. shipbuilding industry saw its workforce and experience base hollow out. Rebuilding that capacity is now a priority, and many officials argue that better wages are at the heart of any serious plan to do so. Huntington Ingalls Industries, one of the largest shipbuilders, has reported progress after putting more money into hiring experienced workers and partnering with regional training programs, with its leadership describing the early results as cautiously hopeful.
For Phelan, the message is that shipyard wages must be adjusted to compete with other sectors, just as in many industries facing tight labor markets. Will higher wages and better conditions arrive fast enough to rebuild the Navy’s industrial base and reduce delays and cost overruns in major shipbuilding programs? The answer will shape not only the careers of thousands of workers, but also the future strength of the U.S. fleet.
