JPMorgan backs Rhoads Industries in Philadelphia submarine manufacturing push
What's the deal? JPMorgan ChaseDealroom has a profile for this one. Try Dealroom → will direct $24 million in investments, loans, and grants into submarine manufacturing in Philadelphia. The funds include an equity investment in Rhoads Industries, a family-owned submarine supplier, to help build a new facility and train specialised shipbuilding workers.
What's Rhoads building? The company, a supplier to Navy submarine builder General Dynamics Electric Boat, is constructing a 95,000ft² high-bay submarine manufacturing and assembly facility. It is expected to create 450 new jobs. JPMorgan's equity investment uses the New Markets Tax Credit program, which incentivises economic development.
Why now? The move supports a Trump administration push to boost US shipbuilding, both military and civil. The US Navy has spent years trying to expand its fleet to keep pace with China, laying out plans to invest billions modernising American shipyards.
Where does the money go? Part of the investment funds workforce training and apprenticeships — welders, electricians, and other specialised roles. The topic dominated a two-day summit hosted by chief executive Jamie DimonDealroom has a profile for this one. Try Dealroom → with defence-sector leaders.
"We hear from clients all the time — they don't have the workers they need. That could be welders, electricians, a lot of those folks are near retirement age," Dimon said at the event.
What's the endgame? The bank frames the deal as part of a $1.5 trillion effort to support national and economic security industries. It plans to back other shipyard initiatives across the country. "We want to work with multiple people to bring back multiple shipyards over time in the United States," said Jay Horine, who oversees the bank's Security and Resiliency Initiative.
The signal: Philadelphia's shipyard has rebounded following a $5 billion investment by South Korea's HanwhaDealroom has a profile for this one. Try Dealroom →, which builds ships for the US Maritime Administration and aims to build nuclear-powered submarines. JPMorgan's bet ties private capital to a broader national effort to rebuild US industrial capacity — and to reframe blue-collar shipbuilding as a path to careers. "Many of these jobs are high paying jobs that lead to a career, the ability to build wealth, buy a home, support a family," said Tim Berry, the bank's head of corporate responsibility.
Read more: MSN
Image credit: Defence Images / Openverse
