JPMorganChase has announced a $24 million commitment to strengthen Philadelphia’s shipbuilding and maritime manufacturing sector, supporting workforce training, small business suppliers, regional coordination, and the expansion of infrastructure serving the U.S. defense industrial base.
The commitment consists of $18 million in loans and investments and $6 million in philanthropic grants. The funding will support projects at and around the Philadelphia Navy Yard, including the construction of a submarine manufacturing and assembly facility expected to create 450 permanent jobs.
JPMorganChase also plans to help expand apprenticeship and workforce training opportunities for potentially thousands of local workers pursuing careers as welders, electricians, and other skilled shipbuilding professionals.
Additional funding will support as many as 100 local maritime suppliers and strengthen collaboration among employers, workforce training organizations, community groups, educational institutions, and government agencies.
The initiative combines two broader JPMorganChase programs. The American Dream Initiative is a multiyear effort focused on expanding economic opportunity in communities across the United States, while the Security and Resiliency Initiative is a $1.5 trillion, 10-year plan to finance and invest in industries considered critical to U.S. economic and national security.
Shipbuilding is one of the industries covered by the Security and Resiliency Initiative.
JPMorganChase said the United States faces significant challenges in rebuilding its domestic maritime industrial base. Less than 1% of new commercial ships are currently constructed in the country, and less than 1% of the global merchant fleet operates under the U.S. flag.
The United States maintains fewer than 190 flagged merchant vessels, many of which were constructed abroad. This represents a decline of nearly 3,000 vessels since the 1960s.
The decline has been driven by several interconnected issues, including high material and labor costs, limited supplier capacity, aging infrastructure, inconsistent demand, changing requirements, and a shortage of skilled workers.
Research from the JPMorganChase PolicyCenter and the Center for Geopolitics estimates that the U.S. shipbuilding industry could require approximately 250,000 new skilled workers over the next decade.
Addressing that shortage will require additional training programs, modernized facilities, expanded supplier networks, and more accessible capital for businesses participating in the shipbuilding economy.
JPMorganChase believes Philadelphia is well positioned to help address those challenges because of its maritime history, port infrastructure, manufacturing base, and concentration of workforce and educational organizations.
The Philadelphia Navy Yard currently supports approximately 16,000 jobs across maritime industries, advanced manufacturing, life sciences, and other sectors.
JPMorganChase’s funding is intended to help the region create clearer pathways into skilled careers that do not require a traditional four-year college degree. The initiative will also help smaller companies qualify for contracts and participate in the growth of the maritime and defense supply chains.
The largest component of the announcement is a $13 million New Markets Tax Credit equity investment in Rhoads Industries. The investment is part of a broader $40 million New Markets Tax Credit transaction.
Rhoads Industries will use the financing to support construction of a 95,000-square-foot high-bay submarine manufacturing and assembly facility at the Navy Yard.
The facility is expected to create 450 permanent jobs and expand access to workforce development and apprenticeship opportunities for welders, electricians, and other workers needed for submarine and shipbuilding programs.
PIDC Community Capital will receive a $5 million long-term, low-cost loan. PIDC Community Capital is the lending arm and community development financial institution of Philadelphia’s public-private economic development organization.
The loan will help PIDC Community Capital expand financing products for small businesses, including loans for commercial real estate acquisition, construction, leasehold improvements, and working capital.
JPMorganChase expects the financing to support as many as 15 loans and contribute to the creation or retention of more than 200 jobs.
PIDC Community Capital and the Delaware Valley Industrial Resource Center will also receive a $1.5 million grant to strengthen the maritime supplier network supporting the Philadelphia Navy Yard.
The program will provide technical assistance to as many as 100 commercial maritime suppliers. Up to 30 companies will receive more intensive support through structured assessments, remote diagnostics, and on-site operational reviews.
The assistance will help participating businesses improve efficiency, manufacturing quality controls, plant organization, and digital capabilities. The program will also identify workforce gaps and priority hiring needs among suppliers.
The Greater Philadelphia Growth Partnership will receive a $2.4 million grant to improve regional coordination among employers, training providers, community groups, and other organizations.
The partnership will focus on aligning economic development and workforce initiatives with the anticipated demand for shipbuilding, maritime manufacturing, and related industrial capabilities.
The Skills Initiative at University City District will receive a $2 million grant to expand workforce programs connecting residents with higher-paying jobs in shipbuilding and advanced manufacturing.
The program will coordinate employers, technical education providers, and funding organizations to develop non-degree career pathways. It is expected to provide training to nearly 300 Philadelphia-area residents.
JPMorganChase said the investments are designed to support both national security and local economic mobility.
Strengthening domestic shipbuilding capacity could help the United States reduce its dependence on foreign suppliers, expand its commercial and military vessel capacity, and improve the resilience of maritime supply chains.
For Philadelphia, the initiative could create more family-sustaining jobs, increase contracting opportunities for small businesses, and help residents enter skilled careers without taking on the expense of a four-year degree.
The investments also reflect a broader effort to develop the entire shipbuilding ecosystem rather than supporting a single facility or employer.
By investing simultaneously in industrial infrastructure, workforce training, supplier development, and regional coordination, JPMorganChase aims to address several of the constraints that have limited the growth of domestic shipbuilding.
KEY QUOTES:
“America can compete and lead in shipbuilding again—it starts with more skilled workers and secure supply chains. We need to train people for the jobs shipbuilders urgently need, connect them to good careers and strengthen the suppliers and partners that keep a shipyard running. When we build the workforce and the supply chain together, we create good careers for workers and a stronger, more resilient maritime industry that supports our national security and our economy.”
Jamie Dimon, Chairman and CEO of JPMorganChase
“Philadelphia is a place where targeted, coordinated investment can translate into real economic mobility. By strengthening workforce pathways, supplier readiness and access to capital, we can help more people connect to quality jobs and help local businesses participate in long-term growth.”
Tim Berry, Global Head of Corporate Responsibility and Chairman of the Mid-Atlantic Region at JPMorganChase
“America cannot restore its industrial strength or ensure peace through strength without investing in the workforce that powers it. Philadelphia has long been one of the great shipbuilding cities in the world, and today’s investment by JPMorganChase recognizes that revitalizing this industry requires more than ships and shipyards. It requires creating opportunity for people. By supporting workforce development and strengthening local communities, this commitment will help prepare the next generation of skilled workers who will build the ships that protect our country and reinforce Pennsylvania’s role as a cornerstone of America’s defense industrial base.”
Dave McCormick, U.S. Senator for Pennsylvania
“When organizations like JPMorganChase invest in Philadelphia, they’re investing in our people. They’re helping create the kind of opportunities that let someone learn a new skill, earn a good paycheck and build a better life for themselves and their family. That’s exactly the future we’re creating in the Lower South and at the Navy Yard: more pathways to family-sustaining careers and more opportunities for Philadelphians to help build America’s future.”
Cherelle L. Parker, Mayor of Philadelphia
“The Navy Yard has long been one of the most important economic engines in our city, and today’s investment by JPMorganChase is about building the next generation of opportunity. By strengthening our shipbuilding industry, investing in workforce development, and supporting small businesses, we’re creating pathways to family-sustaining careers while reinforcing Philadelphia’s role as a leader in American manufacturing. When the public and private sectors work together with our educational and community partners, we can grow our economy in a way that benefits neighborhoods across our city.”
Kenyatta Johnson, President of the Philadelphia City Council
“Philadelphia has always been a city that builds. Strengthening the shipbuilding ecosystem is an opportunity to create quality jobs, support local businesses and invest in the workforce that will power the next generation of advanced manufacturing and industrial growth. This initiative, made possible by JPMorganChase’s strategic investment and partnership, demonstrates how cross-sector collaboration can help Philadelphia compete, attract investment and contribute to industries that are critical to America’s economic growth and prosperity.”
Jodie Harris, President of PIDC
“The Greater Philadelphia Growth Partnership was built on a simple truth: our region’s challenge has never been a lack of talent or assets. It has been a lack of shared focus and coordinated action at scale. With JPMorganChase’s investment, Greater Philadelphia can compete and win, and we can make sure that growth reaches the families who need it most.”
Chellie Cameron, President and CEO of the Chamber of Commerce for Greater Philadelphia
