Sen. McCormick-led defense summit draws $10B in commitments, 4,000 new PA jobs

Credit: Philly Shipyard

Pennsylvania is at the heart of the nation’s defense, and a wave of 30 investments announced this week reflect the continuing drive to keep the state at the forefront.

Nearly $10 billion in investments, supporting more than 4,000 jobs, were announced in conjunction with the two-day Defense and Innovation Summit coordinated by U.S. Sen. Dave McCormick, a Republican, at the U.S. Army War College in Carlisle.

“Pennsylvania has always been at the center of our national defense,” he said during a panel discussion. “We’re entering a new phase of enormous innovation in defense, and Pennsylvania should be, and in many ways is, the point of the spear.”

Pennsylvania Gov. Josh Shapiro, a Democrat, also participated in the discussion, emphasizing the state’s role in defense.

“To me, defense is critical to the future growth of this Commonwealth,” he said. “We can build on that heritage as we think about how to create more jobs, more prosperity, and, most importantly, more national security for the greatest country on the face of the earth, right here in the Commonwealth of Pennsylvania.”

Bolstering the Hanwha Philly Shipyard was a major focus of the event, with JPMorganChase announcing $24 million to strengthen the shipbuilding industry.

The dollars will help drive expansion of a submarine manufacturing and assembly facility, and are expected to create 450 new jobs. The investment will help to expand workforce training and apprenticeship for tradesmen such as welders and electricians and will support up to 100 local maritime small business suppliers.

“America can compete and lead in shipbuilding again – it starts with more skilled workers and secure supply chains,” said Jamie Dimon, Chairman and CEO of JPMorganChase, in the announcement.

Dimon spoke on day two of the event as did President Donald Trump.

Increasing the rate of innovation to outpace China was a key theme of the event. Innovation, specifically robotics and automation, often raises concern among workers who fear they’ll be replaced, said Michael Coulter, president and CEO of Hanwha Defense USA. But Coulter sought to dispel the concern.

“We’re overhitting our recruiting marks in Philadelphia right now, and I’m convinced that it’s because we’re showing our workforce a technology future,” he said. Today a worker may be a welder; tomorrow they could be operating five robotic welding machines, he noted.

Hanwha last year announced a $5 billion plan to improve the shipyard and Coulter said the company plans to double its footprint at the yard. “We are foot-on-the-throttle to make shipbuilding great again and Pennsylvania’s the heart of that.”

Danny Deep, president of General Dynamics, said to further strengthen the workforce, it’s important to engage students in skilled trades early in their educations. The company is involved in some small states where students are engaged as early as the fifth grade.

“They can have great lives. They can have great careers,” he said.

Some of the defense-related announcements included:

Impossible Metals said it will open a new Advanced Marine Robotics Hub in Pittsburgh that will help counter China’s dominance in the minerals industry.

The company is developing a fleet of autonomous underwater robots that selectively collect minerals from the ocean floor while protecting marine life. Such minerals include nickel, cobalt, copper, and manganese, which are “at the core of batteries, munitions, and advanced defense platforms.”

Kratos Defense & Security Solutions Inc. said it is opening a 167,000-square-foot advanced manufacturing plant in York, expanding its existing operations, which employ more than 440 people.  It also announced plans to buy $7 million in new equipment to expand its production capabilities.

Conshohocken-based ZeroEyes announced a $10 million investment in artificial intelligence and machine learning research and development, including a commitment to hire more than 100 veterans in Southeastern, Pa., during the next two years.

Karman Space & Defense announced a $2.7 million investment to expand its Horsham, Pa. site, increasing the company’s capacity to rapidly develop and produce advanced technologies that support the operational readiness of the U.S. Navy and allied defense forces. This will create about 20 new jobs and keep 40 others.