Comments on “The History of Modern Shipbuilding Methods: The U.S.-Japan Interchange” and “The Productivity Problem in U.S. Shipbuilding”

Abstract

Comparisons of technology and productivity between U.S. and Japanese shipyards are made in two papers in the first issue of the Journal.23 Such comparisons are very difficult and, to some extent, questionable because of the differences in ships and in cost-keeping practices. They are complicated further by the intervention of governments in shipyard operations. In any case, the comparisons show that equalling foreign productivity would not make U.S. shipyards cost-competitive. A coherent government policy implemented by coordinated action is necessary to ensure the operating stability which is essential for productivity and innovation. This was shown by the U.S. wartime program. Clear aims and policies and coordination by government and industry—the entire industry, not led by any one organization or individual, such as Kaiser—produced both extraordinary output and innovation. Many new technologies can only be applied successfully in long-run stable programs which make the productivity gains from both innovation and series production possible.