Rhoads Industries and Pennsylvania Governor Josh Shapiro jointly announced plans to invest nearly $100 million to expand shipbuilding capacity at the former Philadelphia Navy Yard.
With the Navy planning to expand and President Donald Trump promising massive investments in the nation’s shipbuilding and repair industry, Rhoads plans to become the latest U.S. shipyard to seek to expand its business to take advantage of the Trump administration’s support for the Navy and commercial shipbuilding.
According to the plan, Rhoads will build a 95,000 square foot manufacturing plant to increase its capacity for the U.S. Navy’s offshore industrial base to support submarine projects. The plant will enable continuous manufacturing processes, accelerate production, and perform additional outfitting. It is expected to create at least 450 new jobs and retain 541 existing full-time positions.
Currently, Rhoads has received a funding proposal from the Pennsylvania Department of Community and Economic Development (DCED), which includes a $4 million Redevelopment Assistance Capital Program (RACP) investment. Because the company is located in a Keystone Opportunity Zone (KOZ), it can enjoy significant tax benefits. Over the years, Pennsylvania has invested more than $17 million in Rhoads to support its capacity expansion and facility upgrades through multiple fiscal funds.
“Shipbuilding has always been an important part of Philadelphia’s identity and economy, and Rhoads’ investment will create more than 450 new jobs,” said Josh Shapiro. “With federal support – including $4 million in new investment and more than $17 million in investments over the past decade – Rhoads will expand operations and double the capacity of the U.S. Navy’s submarine program.”
According to reports, Rhoads was founded in 1896 and is a large industrial manufacturing and mechanical and maritime repair service provider with shipyard facilities and over 300,000 square feet of heavy manufacturing workshops at the Philadelphia Naval Shipyard.
Since the closure of the Philadelphia Naval Shipyard in 1996, the area has been redeveloped into an industrial zone, attracting more than 150 companies, including the Philadelphia Shipyard, which was acquired by Hanwha Group in 2024 and is now renamed Hanwha Philly Shipyard.
In 1998, Rhoads became a contractor for Kvaerner Shipyard and began expanding its presence at the Philadelphia Navy Yard in the early 2000s. The company established its maritime division in 2010 and acquired the leasehold rights to Pier 5 and Dry Dock 2 (now demolished) at the Philadelphia Navy Yard. It subsequently expanded its operations to Pier 2 and recently took over Pier 6 and Dry Dock 3.