Philadelphia-based Rhoads Industries, Inc. announced it had entered into a long-term agreement with General Dynamics Electric Boat to provide advanced manufacturing and shipbuilding support services for U.S. Navy submarine construction programs.
The agreement spans 10 years from 2026 to 2035 and is valued at approximately $2.5 billion, the companies said. The agreement will also reinforce the relationship between Rhoads and General Dynamics Electric Boat, a division of General Dynamics, while expanding on their shared commitment to the American submarine industrial base.
As part of the agreement, Rhoads will continue to provide steel fabrication, structural assembly, outfitting, and other shipbuilding support services from its Philadelphia Navy Yard operation. Officials said they expect the work to average an estimated 1.4 million workforce hours annually as it supports one of the region’s largest long-term shipbuilding programs.
“This agreement represents far more than a contract—it is a long-term investment in American manufacturing, the skilled workforce that powers our industry, and the future of our nation’s maritime defense,” Mike Rhoads, President of Rhoads Industries, said. “This long-term agreement reflects the confidence that comes from years of successful partnership and consistent performance. Our workforce has earned a reputation for delivering on the Navy’s most demanding shipbuilding programs, and we are proud to continue that legacy with General Dynamics Electric Boat as we help expand the industrial capacity needed to support one of our nation’s highest defense priorities.”
Rhoads said he expects the workforce to grow to 1,500 employees, an increase of five times the company’s workforce at the end of 2023. The sustained growth will create hundreds of additional high-quality careers in skilled trades, engineering, project management and manufacturing in the Greater Philadelphia area, the company said.