Rhoads Plans $100M Investment to Expand Operations at Philly’s Navy Yard

Rhoads Industries, alongside Pennsylvania Governor Josh Shapiro, announced its plans for a nearly $100 million investment to expand manufacturing capacity at its shipyard facilities in Philadelphia at the site of the former Navy shipyard. Rhodes operates layup and recycling operations as well as a repair facility. It will grow its manufacturing operations as the U.S. Navy looks to expand and the Trump administration promises large investments into the U.S. shipbuilding and repair industry.

“Shipbuilding has always been a 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.”

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 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. This project will reportedly create at least 450 new jobs and retain 541 existing full-time positions.

Rhoads received a funding proposal from Pennsylvania’s 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 reports it has invested in Rhoads throughout the years, totalling more than $17 million in multiple grants to support the company’s expansions and facility upgrades.

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 shipyard facilities and more than 300,000 square feet of heavy manufacturing space located in the Navy Yard in Philadelphia.

After the former Philadelphia Naval Yard closed in 1996, the area was redeveloped as an industrial zone by the state, and is now home to over 150 employers, including the shipyard acquired in 2024 by Hanwha Ocean and now known as Hanwha Philly Shipyard. The Korean company has separately announced that it would also like to expand its operations as it seeks government contracts in addition to the current work to build containerships for Matson and complete the MARAD training ship program.

Rhoads became a contractor performing work for the then Kvaerner Shipyard starting in 1998, and began expanding its operations at the Navy Yard in the early 2000s. It launched its maritime division in 2010, gaining the lease for Pier 5 and Dry Dock 2 (now decommissioned). It expanded with Pier 2 and recently took over Pier 6 and Dry Dock 3 at the yard.

It becomes the latest U.S. shipyard to look to expand its operations to position itself for the opportunities resulting from the Trump administration’s support of naval and commercial shipbuilding.