The deal extends a longstanding relationship between the Philadelphia-based manufacturer and Electric Boat, a business unit of General Dynamics. It also gives Rhoads a larger role in the submarine supply chain as the Navy seeks sustained industrial capacity for undersea programs.
Rhoads will continue to perform steel fabrication, structural assembly, outfitting and related shipbuilding support work at the Philadelphia Navy Yard. The company said the agreement is expected to average about 1.4 million workforce hours each year.
The workload is expected to support one of the region’s largest long-term shipbuilding programs. Rhoads said production growth over the life of the agreement could lift its workforce to nearly 1,500 employees, more than five times its headcount at the end of 2023.
That expansion is expected to create hundreds of additional jobs across skilled trades, engineering, project management and manufacturing. The company said the growth would reinforce Greater Philadelphia’s position as a centre for advanced maritime manufacturing.
Rhoads is also investing in its production infrastructure to support the higher volume of submarine work. Alongside its existing Philadelphia Navy Yard facilities, the company is building 57A, a purpose-built manufacturing site scheduled for completion in June 2027.
The new facility is designed to meet rising production demand from U.S. Navy submarine programs. Rhoads said it will expand manufacturing capacity and support the company’s ability to deliver under the long-term Electric Boat agreement.
“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,” said Mike Rhoads, President of Rhoads Industries. “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.” The statement links the agreement to both submarine production capacity and the company’s planned workforce expansion.
“Rhoads Industries has earned our confidence through consistently improving its performance and focusing on the high standards of submarine shipbuilding,” said Mark Rayha, president of General Dynamics Electric Boat. “This long-term agreement reflects our shared commitment to grow and strengthen the nation’s submarine industrial base.”
Rhoads said the agreement gives it the stability to keep investing in workforce development, apprenticeship programs, advanced manufacturing technologies and facility expansion. The company said those investments will support the U.S. Navy’s mission for decades to come.
