JPMorganChase & Co., New York, announced a $24 million package of loans, investments, and grants aimed at expanding shipbuilding capacity, workforce training, and the maritime supply chain in Philadelphia.
The funding includes $18 million in loans and investments and $6 million in philanthropic grants. The largest commitment is a $13 million New Markets Tax Credit equity investment in Rhoads Industries supporting construction of a 95,000-sq.-ft. high-bay submarine manufacturing and assembly facility at the Philadelphia Navy Yard. The investment is part of a $40 million New Markets Tax Credit transaction.
The facility is expected to create 450 permanent jobs and expand training and apprenticeship opportunities for welders, electricians, and other shipbuilding workers.
“America can compete and lead in shipbuilding again. It starts with more skilled workers and secure supply chains,” Jamie Dimon, chairman and CEO of JPMorganChase, said in a statement. “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.”
The package also includes a $5 million long-term, low-cost loan to PIDC Community Capital, the lending arm and community development financial institution of Philadelphia’s public-private economic development corporation. The money will support financing for small businesses, including real estate acquisition, construction, leasehold improvements, and working capital.
JPMorganChase said the funding is expected to support as many as 15 loans and create or retain more than 200 jobs.
Another $1.5 million grant will go to PIDC Community Capital and the Delaware Valley Industrial Resource Center to help expand the maritime supplier base serving the Navy Yard. The program is expected to provide technical assistance to as many as 100 commercial maritime suppliers.
Up to 30 suppliers could receive more extensive assessments, remote diagnostics, and on-site reviews focused on efficiency, quality controls, facility organization, digital capabilities, and workforce requirements.
The Greater Philadelphia Growth Partnership will receive a $2.4 million grant to connect regional employers, training providers, and community organizations. A separate $2 million grant to the Skills Initiative at University City District is expected to expand non-degree training pathways for nearly 300 people pursuing shipbuilding and advanced manufacturing jobs.
The Philadelphia Navy Yard currently supports about 16,000 jobs across maritime industries, advanced manufacturing, and life sciences, according to JPMorganChase.
“When organizations like JPMorganChase invest in Philadelphia, they’re investing in our people,” Philadelphia Mayor Cherelle L. Parker said. “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.”
The company linked the Philadelphia investment to broader concerns about U.S. shipbuilding capacity. Research cited in the announcement found that less than 1% of new commercial ships are built in the U.S. and less than 1% of the global merchant fleet is U.S.-flagged. A JPMorganChase PolicyCenter and Center for Geopolitics report estimated the country will need 250,000 new skilled shipbuilding workers over the next decade.
The funding is part of JPMorganChase’s American Dream Initiative and its Security and Resiliency Initiative, a 10-year plan to finance and invest in industries the company considers important to U.S. economic and national security.
“Philadelphia has always been a city that builds,” said Jodie Harris, president of PIDC. “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.”
