Jeff Troan Authors Maritime Prosperity Zone Shipbuilding Incentives Feature for 'Area Development'

Jeff Troan, Senior Managing Director

Jeff Troan, a senior managing director for Vista Site Selection, recently authored an article for the 2025 Quarter 3 issue of Area Development magazine, titled “A New Course for U.S. Shipbuilding.”  The feature maritime prosperity zone (MPZ) shipbuilding incentives and what the Trump administration should consider as it creates these zones to boost the shipbuilding and repair industries in the United States.

Both the Trump administration and the United States Navy have flagged inability to build and repair ships in the United States as military and economic vulnerabilities amid increased international tensions.  The United States has traditionally leveraged its naval might to ensure safe and timely shipping corridors, however China’s navy has recently surpassed the number of ships the U.S. Navy operates and Russian military spending has increased drastically in recent years.  The White House recently issued an executive order to establish MPZs across the United States as an effort to bolster U.S. shipbuilding and repair capabilities.  The order states that the specific benefits of these MPZs will be outlined by November 2025.

Jeff, who spent more than 30 years in multiple senior roles at Lockheed Martin Corporation, explains the purpose of these MPZs, offering insights on both how these zones can use incentives to accomplish the government’s goals and how shipbuilding firms can best invest to bolster their bottom lines.

The Maritime Prosperity Zones proposed in a recent Trump Administration executive order will aim to boost shipbuilding and repair in the United States.

“Ultimately, MPZs have the potential to revitalize U.S. shipbuilding and [multicommand required operational capability] for both commercial and military purposes,” Jeff writes.  “But the window to influence these zones is closing fast.”

He notes that the incentive structures offered by the Federal Opportunity Zones (OZs) advanced during the first Trump administration would not satisfy the goals of forthcoming MPZs.  Namely, the tax benefits offered when deferring gains selling a business are incentives angled at startups; the capital-intensive nature of shipbuilding suggests however that legacy businesses will be in the best position to fulfill the government’s goals and therefore the incentives should be designed accordingly.

“For private industry, rebuilding the commercial shipbuilding and MROC sectors presents a high-risk proposition,” Jeff writes.  “Success will depend heavily on how the MPZs are drawn and the nature of the incentives offered.”

He goes into significant detail regarding the cross-continental nature of the shipbuilding industry and how MPZs can be designed to promote the industry in all 50 states and Puerto Rico.  Aside from military purposes, Jeff also explains how added carrots within the MPZ could allow commercial ship buyers to dodge tariffs.  To read Jeff’s entire story on the Area Development website, click here.  (Subscription may be required). 

Jeff also hinted at one major development at Vista: We’re currently developing AI algorithms to help identify qualifying geographies and help states plan for shipbuilding infrastructure.  Stay tuned!