Governor Shapiro, Rhoads Industries Announce a Nearly $100 Million Investment to Expand Shipbuilding and Manufacturing Operations, Creating 450 New Jobs at Philadelphia Navy Yard

The Commonwealth is investing $4 million to support the expansion of Rhoads Industries’ manufacturing operations at the Philadelphia Navy Yard.

 Today’s announcement is another major win for Pennsylvania, just weeks after the Shapiro Administration secured the largest private sector investment in Commonwealth history with a $20 billion deal from Amazon.

Governor Josh Shapiro’s 2025-26 proposed budget includes new and expanded investments to further build on our success and continue Pennsylvania’s economic development momentum.

Philadelphia, PA – Today, Governor Josh Shapiro announced the Commonwealth has secured a nearly $100 million investment from Rhoads Industries (Rhoads) to grow its manufacturing operations at the Philadelphia Navy Yard. This project will create at least 450 new, good-paying jobs and retain 541 existing full-time positions.

Rhoads will build a new 95,000-square-foot manufacturing facility to increase its production capacity for the U.S Navy’s Maritime Industrial Base, supporting its submarine program. This new onsite facility will allow for a continuous fabrication process speeding up their manufacturing, additional outfitting, and provide direct access to a pier for barge shipping of completed products.

“Shipbuilding has always been key part of Philadelphia’s identity and our economy, and today, I’m proud to announce that Rhoads Industries is investing $100 million and creating over 450 new jobs at the Navy Yard,” said Governor Shapiro. “With support from the Commonwealth — including a new $4 million investment and more than $17 million over the past decade — Rhoads will expand its footprint, double its capacity for the U.S. Navy’s submarine program, and strengthen our national security. The future of shipbuilding runs through Philadelphia — and just like generations before us, it’s Pennsylvania workers who will build what keeps our nation safe. We’re investing in that future because it’s good for our economy, our communities, and for the people of Pennsylvania.”

Rhoads received a funding proposal from the Department of Community and Economic Development (DCED) that includes a $4 million Redevelopment Assistance Capital Program (RACP) grant. The company is also located in a Keystone Opportunity Zone (KOZ), which provides significant tax savings. The Commonwealth has invested in Rhoads throughout the years, investing more than $17 million in multiple RACP grants to support the company’s expansions and facility upgrades.

“Rhoads has called Philadelphia home for nearly 130 years, and the Shapiro Administration is glad they’re doubling down and investing yet again in our Commonwealth,” said DCED Secretary Rick Siger. “This investment supports our national security and economic security, and strengthens our manufacturing sector in Southeastern Pennsylvania, one of the key industries we’re focusing on in the Governor’s economic development strategy. DCED is proud to make investments like this one that give our businesses the support they need to grow and thrive.”

Founded and family‐owned since 1896, Rhoads is a provider of large-scale industrial fabrication, along with mechanical and maintenance maritime services. In addition to field service and project skilled labor, the company has expansive shipyard facilities, and more than 300,000 square feet of heavy manufacturing space located in the Navy Yard in Philadelphia.

“This investment by the Commonwealth will expedite and accelerate our production output and rapid hiring by at least one year,” said Dan Rhoads, Jr., CEO, Rhodes Industries. “Governor Shapiro’s commitment to our company is significant and signals the importance of the defense industry’s growth in Pennsylvania.”

Rhoads also offers a paid, three-year state-accredited apprenticeship program that prepares high school technical education graduates for careers in the submarine industrial base. In partnership with Boilermakers Local 19, the program trains apprentices to meet all military specification requirements by graduation.

Since taking office, the Shapiro Administration has increased funding for career and technical education (CTE) and apprenticeships across Pennsylvania by nearly $65 million — a more than 50 percent increase. As a result, the Commonwealth has created 155 new pre-apprenticeships and registered apprenticeships in just two years, trained over 33,000 Pennsylvanians in fields like welding, manufacturing, transportation, and agriculture, and enrolled 3,000 more students in CTE programs statewide.

“Throughout the last two years that I’ve been at Rhoads Industries, I’ve been offered so many amazing experiences — from the welding certs I’m allowed to acquire to the events I’m invited to be part of, and all of the people I have the joy of working with along the way,” said Boots Olson, a welding apprentice at Rhoads Industries. “My appreciation has grown immensely since becoming part of this program. It’s taught me that every weld you put down represents who you are as a welder and what your workmanship looks like — and it takes a lot of pride to represent the industry the way it deserves.”

The Philadelphia Navy Yard is home to more than 150 employers and 15,000 jobs, emerging as a regional hub for innovation and manufacturing — a key priority in the Shapiro Administration’s 10-year Economic Development Strategy, the first of its kind in over two decades.

“We’re celebrating the success of an outstanding company with Philadelphia roots that are nearly 130 years deep. Even more, we’re excited to celebrate another example of what can be achieved in Philadelphia and across Pennsylvania when the private and public sectors work in sync for the benefit of the communities and citizens we serve,” said Greg Deavens, Board Chair, The Chamber of Commerce for Greater Philadelphia. “It’s a remarkable commitment by Rhoads Industries, and it’s another example of the Shapiro Administration’s proactive and successful approach to supporting major projects that boost local economies and create new jobs. As the Governor has said repeatedly, he didn’t put together a 10-year Economic Development Strategy to have it sit on the shelf. Governor Shapiro, I want to thank you and your Administration for aligning your attitude with your actions to make this Commonwealth a more competitive and attractive place for businesses and residents alike.”

In May, Governor Shapiro and Secretary Siger visited the Philadelphia Navy Yard to highlight a $30 million investment through the PA SITES (Pennsylvania Strategic Investments to Enhance Sites) program. The funding supports the development of the Philadelphia Navy Yard Greenway District, helping to transform 54 acres into shovel-ready sites for advanced manufacturing, life sciences, and commercial use that will help grow Pennsylvania’s economy, foster innovation, and create jobs.

In June, Governor Shapiro announced the Commonwealth had secured a $20 billion investment from Amazon, the largest single private investment in the state’s history.

Since taking office, the Shapiro Administration has secured over $25.2 billion in private sector investments, creating nearly 11,000 jobs.

The Rhoads project was coordinated by Governor Shapiro’s BusinessPA team, an experienced group of economic development professionals dedicated to helping businesses succeed in Pennsylvania through tailored guidance, strategic partnerships, and financial resources. Whether based in the Commonwealth, another state, or across the globe, the team moves at the speed of business to set up companies for long-term growth and success here in Pennsylvania.

“I’m grateful for the Governor’s leadership and what he continues to do on behalf of the folks of the Commonwealth — making sure we don’t just give people words, but deliver real action. Through his tremendous leadership, we’ve been investing all across Pennsylvania: building things, cutting down on red tape and bureaucracy, and making sure economic development isn’t just a phrase or a slogan, but truly how we work in this Commonwealth,” said Representative Jordan Harris, Chairman of the PA House Appropriations Committee. “As Appropriations Chairman, I know firsthand why and how every tax dollar is spent, and where it should go. But I also know those dollars are more than just numbers on a spreadsheet — the dollars we invest in Pennsylvania reflect our values, our morals, and what we believe is important in this Commonwealth.”

From day one, Governor Shapiro has worked to spur economic development in Pennsylvania — creating the Commonwealth’s first comprehensive Economic Development Strategy in nearly two decades; securing historic funding for site development, main streets, small businesses, and more; and speeding up the Commonwealth’s permitting, licensing, and certification processes.

The Shapiro Administration is delivering real results — and building on that momentum. Governor Shapiro’s 2025-26 budget proposal calls for new and expanded investments to advance the 10-year Economic Development Strategy, boosting Pennsylvania’s competitiveness, including:

• $12.5 million dedicated to WEDnetPA to expand our workforce and close critical workforce gaps
• $2 million for the creation of Career Connect to build internships at Pennsylvania companies
• $10 million for AdvancePA tax credits to create high quality jobs across PA
• $3 million to the Marketing to Attract Business program, which supports programs targeting business attraction, retention, and marketing initiatives
• Expediting the Corporate Net Income Tax (CNIT) cuts by two years, reducing the current tax rate each year by 0.75 percent

Read more about Governor Shapiro’s 2025-26 budget proposal. Explore the Governor’s 2025-26 Budget in Brief online, or visit shapirobudget.pa.gov to learn more.

For more information about the Department of Community and Economic Development, visit the DCED website, and be sure to stay up-to-date with all of our agency news on Facebook, X, and LinkedIn.

MEDIA CONTACT:
Governor’s Office, ra-gvgovpress@pa.gov, 717.783.1116
DCED, dcedpress@pa.gov

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