JPMorganChase is investing $24 million to help expand shipbuilding and maritime manufacturing in Philadelphia, backing new workforce training, small business suppliers, and a major Navy Yard manufacturing project expected to create 450 permanent jobs.
The package includes $18 million in loans and investments and $6 million in grants aimed at strengthening the city’s role in the nation’s defense industrial base while preparing more Pennsylvanians for careers in shipbuilding and advanced manufacturing.
“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 Wednesday. “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,” he added.
The largest investment is a $13 million New Markets Tax Credit equity investment in Rhoads Industries as part of a $40 million financing package, according to the firm’s announcement, which was made during the Pennsylvania Defense and Innovation Summit, a two-day event in Carlisle, Pa., that ended July 15.
The funding will support construction of a new 95,000-square-foot submarine manufacturing and assembly facility at the Philadelphia Navy Yard that is expected to create 450 permanent jobs.
The project also is expected to expand workforce training and apprenticeship opportunities for potentially thousands of welders, electricians, and other skilled trades workers.
The investment comes as the U.S. shipbuilding industry faces workforce shortages and declining domestic production.
According to JPMorganChase, the United States builds less than 1 percent of new commercial ships worldwide and maintains fewer than 190 U.S.-flagged merchant vessels, down by nearly 3,000 since the 1960s. The firm said a recent report estimates the industry will need 250,000 new skilled workers over the next decade.
U.S. Sen. Dave McCormick (R-PA) said the investment builds on Philadelphia’s long-standing role in the industry.
“America cannot restore its industrial strength or ensure peace through strength without investing in the workforce that powers it,” McCormick said during the summit. “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.”
Philadelphia Mayor Cherelle Parker said the investment is ultimately about creating opportunities for city residents.
“When organizations like JPMorganChase invest in Philadelphia, they’re investing in our people,” 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.”
Beyond the Navy Yard project, JPMorganChase is providing a $5 million low-cost loan to PIDC Community Capital to expand lending to small businesses. The funding is expected to support up to 15 loans and help create or retain more than 200 jobs.
The bank is also providing a $1.5 million grant to PIDC Community Capital and the Delaware Valley Industrial Resource Center to help bolster the region’s maritime supply chain by supporting as many as 100 commercial maritime suppliers with technical assistance.
Another $2.4 million grant will support the Greater Philadelphia Growth Partnership’s efforts to connect employers, workforce training providers, and community organizations, while a $2 million grant to the Skills Initiative at University City District will help expand non-degree training programs expected to serve nearly 300 local residents seeking careers in shipbuilding and advanced manufacturing.
Tim Berry, JPMorganChase’s global head of corporate responsibility and chairman of the Mid-Atlantic region, said the effort is intended to improve economic mobility while meeting workforce demand.
“Philadelphia is a place where targeted, coordinated investment can translate into real economic mobility,” said Berry. “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.”
Other local officials and economic development leaders also praised the investment.
“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,” said Philadelphia City Council President Kenyatta Johnson.
Jodie Harris, president of PIDC, said the initiative 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.”
Chellie Cameron, president and CEO of the Chamber of Commerce for Greater Philadelphia, said the investment will help the region compete while ensuring “growth reaches the families who need it most.”