JPMorganChase makes $24M available to help strengthen shipbuilding in Philadelphia

JPMorganChase, the largest U.S. bank and one of the world’s leading financial services providers, today  (15 July) announced that it is making $24 million available to strengthen Philadelphia’s shipbuilding and maritime manufacturing industry—supporting skills training, stronger supply chains and small business growth in a sector critical to America’s defense industrial base.   The announcement includes $18 million in loans and investments and $6 million in philanthropic grants.   Near-term focus areas include: Driving the expansion of a submarine manufacturing and assembly facility expected to create 450 new permanent jobs; Helping expand workforce training and apprenticeship opportunities for potentially thousands of local workers—including welders, electricians and other critical shipbuilding roles—to work at the Navy Yard; Supporting up to 100 local maritime small business suppliers; and Building a stronger regional collaborative that connects employers, training providers and community partners to meet demand and expand economic opportunity.   “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. “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.”   This announcement brings together two JPMorganChase firmwide efforts: the American Dream Initiative (ADI), a multi-year effort to help expand opportunity to millions of Americans and future generations through targeted investments in local communities across the United States, and the Security and Resiliency Initiative (SRI)—a $1.5 trillion, 10-year plan to finance, facilitate and invest in industries critical to U.S. economic and national security, which include shipbuilding.           The stakes for American shipbuilding are significant, says the firm. Research from J.P. Morgan’s Industry and Policy Thematics team underscores both the opportunity and the urgency of the challenge: less than 1% of new commercial ships are built in the U.S. and less than 1% of the existing global merchant fleet is U.S.-flagged. Today, the U.S. maintains fewer than 190 flagged merchant vessels—many built abroad—down nearly 3,000 since the 1960s. This decline reflects a set of interconnected structural challenges, including high input costs, constrained supply chain capacity, aging shipbuilding infrastructure, unreliable demand, inconsistent requirements and workforce shortages. A recent report by the JPMorganChase PolicyCenter and Center for Geopolitics further highlights the scale of the workforce gap, estimating demand for 250,000 new skilled shipbuilding workers over the next decade. Addressing these constraints will require greater alignment across workforce training, supplier capacity, modernized facilities and expanded access to capital.         

Philadelphia has a significant opportunity to expand access to quality jobs, particularly for residents who face barriers to upward mobility, says JPMorganChase. While the region has major strengths—including globally recognized healthcare and higher education institutions—too many residents remain disconnected from higher-wage career paths, especially those that do not require a four-year degree.   The Philadelphia Navy Yard—home to 16,000 jobs across maritime industries, advanced manufacturing and life sciences—and the region’s port infrastructure are positioned to contribute to national priorities tied to shipbuilding and long-term competitiveness. JPMorganChase’s efforts are designed to help local partners translate that potential into outcomes—clearer pathways into high-demand jobs, stronger supplier readiness and small business participation, and improved coordination across employers, training providers, community organizations and government.   “Philadelphia is a place where targeted, coordinated investment can translate into real economic mobility,” said Tim Berry, global head of corporate responsibility and chairman of the Mid-Atlantic Region for JPMorganChase. “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.”  Loans, investments and grants include: Rhoads Industries ($13 million New Markets Tax Credit (NMTC) equity investment, part of a $40 million NMTC transaction): This investment will support construction of a new 95,000-square-foot high-bay submarine manufacturing and assembly facility that is expected to create 450 new permanent jobs, while helping expand workforce training and apprenticeship opportunities for potentially thousands of local workers—including welders, electricians and other critical shipbuilding roles—to work at the Navy Yard.

PIDC Community Capital ($5 million long-term, low-cost loan): This loan is designed to expand support for PIDC’s lending arm and Community Development Financial Institution, PIDC Community Capital, including lending products for small businesses, such as commercial real estate acquisition and construction, leasehold improvements and working capital. The funding is expected to support up to 15 loans and the creation or retention of upwards of 200 jobs.       PIDC Community Capital, in partnership with Delaware Valley Industrial Resource Center (DVIRC) ($1.5 million grant): This funding will help grow the maritime supplier base for the Philadelphia Navy Yard by supporting as many as 100 commercial maritime suppliers with technical assistance, including up to 30 with high-touch structured assessments, remote diagnostics and on-site operational walkthroughs to improve efficiency, quality controls, plant organization and digital maturity—helping identify priority talent needs.   Greater Philadelphia Growth Partnership ($2.4 million grant): This funding will help build a stronger regional collaborative that connects employers, training providers and community partners to meet demand and expand economic opportunity.   The Skills Initiative at University City District ($2 million grant): This funding will help scale workforce models that connect employers, technical training providers and funding systems, with a focus on expanding non-degree pathways into higher-wage roles aligned with shipbuilding and advanced manufacturing. The effort is expected to scale skills training for nearly 300 local individuals, helping more residents access quality jobs tied to the region’s growing maritime and industrial economy.
Statements of Support      “America cannot restore its industrial strength or ensure peace through strength without investing in the workforce that powers it,” said U.S. Senator for Pennsylvania Dave McCormick. “Philadelphia has long been one of the great shipbuilding cities in the world, and today’s investment by JPMorganChase—the kind of investment we’re proud to feature at today’s Defense and Innovation Summit—recognizes that revitalizing this industry requires more than ships and shipyards. It requires creating opportunity for people. 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.”   “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. When the public and private sectors work together with our educational and community partners, we can grow our economy in a way that benefits neighborhoods across our city.”  

“Philadelphia has always been a city that builds. 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,” said Jodie Harris, President of PIDC, Philadelphia’s public-private economic development corporation. “This initiative, made possible by JPMorganChase’s strategic investment and partnership, 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.