Because the San Pedro wetfish fleet is shrinking and is not yielding good wages for fishermen or good returns to investors, it needs to improve its economic state. The fleet is antiquated,and one way it can improve itself is by constructing new, efficient vessels, both for replacement of vessels and for expansion of the fleet to harvest presently underexploited stocks of jack mackerel and anchovies in the California Current. The study reported here investigated the feasibility of this approach. It found that, at present rates of catch and prices of fish, the construction of new vessels is not economically feasible--even if the construction is subsidized. It also found, however, that expansion of the fleet through acquisition of surplus vessels from other fisheries is feasible, given sufficient demand for wetfish at present prices.