PHILADELPHIA, PA — JPMorganChase is directing $24 million into Philadelphia’s shipbuilding economy to expand submarine-component manufacturing, train workers and strengthen local suppliers as the U.S. confronts persistent industrial-capacity and labor shortages.
The package includes $18 million in loans and investments and $6 million in philanthropic grants. Funding will support a new submarine manufacturing facility at the Philadelphia Navy Yard, workforce programs, small-business lending and coordination among regional employers and training providers.
The largest commitment is a $13 million New Markets Tax Credit equity investment tied to a $40 million financing transaction for Rhoads Industries.
The financing will support construction of a 95,000-square-foot manufacturing and assembly facility expected to create 450 permanent jobs. The site will also support apprenticeship and training opportunities for welders, electricians and other workers needed for shipbuilding operations at the Navy Yard.
JPMorganChase is also providing a $5 million long-term, low-cost loan to PIDC Community Capital, the community development financial institution affiliated with Philadelphia’s public-private economic development corporation.
The loan is expected to support as many as 15 small-business loans and create or retain more than 200 jobs. Eligible uses include commercial property purchases, construction, leasehold improvements and working capital.
A separate $1.5 million grant to PIDC Community Capital and the Delaware Valley Industrial Resource Center will provide technical assistance to as many as 100 maritime suppliers.
Up to 30 companies will receive more extensive assessments covering operating efficiency, quality controls, plant organization, digital capabilities and workforce needs.
The Greater Philadelphia Growth Partnership will receive a $2.4 million grant to coordinate employers, training organizations and community groups around regional labor demand.
The Skills Initiative at University City District will receive $2 million to expand non-degree training programs connected to shipbuilding and advanced manufacturing. The program is expected to train nearly 300 Philadelphia-area residents.
Jamie Dimon, chairman and chief executive officer of JPMorganChase, linked the investment to broader concerns about domestic manufacturing capacity and national security.
“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,” Dimon stated.
The funding combines two JPMorganChase programs: its American Dream Initiative, which focuses on economic opportunity, and its Security and Resiliency Initiative, a 10-year plan to finance and invest $1.5 trillion in industries the bank considers important to U.S. economic and national security.
Shipbuilding is among the industries covered by the resiliency program.
The U.S. builds less than 1% of new commercial ships worldwide and accounts for less than 1% of the global merchant fleet, according to research cited by the bank. The country has fewer than 190 U.S.-flagged merchant vessels, down by nearly 3,000 since the 1960s.
JPMorganChase attributed the decline to high production costs, limited supplier capacity, aging infrastructure, inconsistent demand and workforce shortages.
A report from the JPMorganChase PolicyCenter and the Center for Geopolitics estimated that the U.S. shipbuilding industry will need 250,000 additional skilled workers over the next decade.
Philadelphia’s Navy Yard currently supports about 16,000 jobs across maritime industries, advanced manufacturing and life sciences. The new funding is intended to connect more local workers and businesses to expected growth in shipbuilding and defense production.
Tim Berry, JPMorganChase’s global head of corporate responsibility and chairman of its Mid-Atlantic region, described workforce access, supplier preparation and financing as interconnected constraints on the sector’s growth.
“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,” Berry stated.
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