CT: General Dynamics Electric Boat to Invest $800M, Add 1,900 Jobs in Groton
2 May, 2018
Governor Dannel P. Malloy announced an historic partnership with General Dynamics Electric Boat (EB) that will help the company grow its workforce by nearly 1,900 bringing it to more than 13,000 by 2034, allow for capital investments of greater than $800 million in the state over the next 17 years, and more than double their spending on in-state suppliers, which are located in 102 Connecticut cities and towns. Connecticut’s investment will allow EB to maintain its position as the highest-quality provider of submarines to the U.S. Navy, thus capturing additional overhaul and repair work while continuing the delivery of the Virginia Class Submarines.
“Since the American Revolution, the Provision State has earned its reputation as the Submarine Capitol of the World, thanks to our ingenuity and ceaseless resolve,” Governor Malloy said. “From helicopters, to fighter jets and submarines, Connecticut is a worldwide leader in aerospace and defense manufacturing. Our state’s partnership with General Dynamics Electric Boat will ensure that thousands of good-paying manufacturing jobs continue to grow for years to come. This isn’t just a good deal for southeastern Connecticut, it’s a good deal for residents across the state, where over 700 supply chain companies with locations in over 100 towns will see increased demand from the best submarine maker in the world.”
“This is good news that will create jobs and strengthen the relationship between Electric Boat and the state of Connecticut for decades to come,” Lt. Governor Nancy Wyman said. “Connecticut has proudly been home to Electric Boat for more than a century. I commend Governor Malloy, President Geiger, and their teams for ensuring EB’s continued leadership on defense.”
General Dynamics Electric Boat designs, constructs, and repairs submarines for the U.S. Navy. Currently, the company produces two submarines a year and is ramping up to build three by 2021. The company is also significantly expanding its Groton facility through the construction of a new dry dock and manufacturing superstructure. This new facility will house the construction and new Columbia-class nuclear powered ballistic missile submarines which will be replacing the ageing Ohio-class. To support this increased manufacturing, Electric Boat will be training and hiring 18,000 new employees over the next decade.
“This investment provides crucial support for the workforce development and facility expansion that will help Electric Boat grow, increase its economic contribution to the region, and continue to deliver the world’s most capable submarines to the U.S. Navy,” EB President Jeffrey S. Geiger said. “It will also improve our competitive position, help us to secure additional work in the future, and solidify the region’s title of Submarine Capital of the World.”
Over the course of the agreement, General Dynamics Electric Boat will:
- Grow its workforce by 1,881, bringing its total to more than 13,000;
- Make capital investments of $852 million; and
- More than double its $250 million annual spending on over 700 Connecticut suppliers as a result of increased demand for submarines from the U.S. Navy.
“Today’s commitment from Electric Boat – bolstered by important state aid – is a major win for Connecticut jobs and our national security,” Senator Richard Blumenthal said. “Electric Boat’s Connecticut workforce produces the best submarines in the world, bar none, vital to our nation’s undersea capabilities abroad. As a member of the Senate Armed Services Committee, I am committed to ensuring that our federal defense funding supports this critical work – empowering Connecticut’s economy and securing our seas.”
“Today’s announcement is fantastic news for Connecticut’s future role in the historic growth of America’s undersea fleet,” Congressman Joe Courtney said. “The investment by Congress in submarines, which has been steadily growing over the last eight years, will continue upward for decades to come. Strengthening Connecticut’s workforce will ensure our state’s tradition of excellence will continue to make us the submarine capital of the world. The manufacturing pipeline, which started three years ago, is a successful model that the Governor’s plan will enhance for future generations of America’s ship builders.”
“Just like we did for Sikorsky, just like we did for UTC, today Connecticut is stepping up to secure jobs and an economic future for Connecticut residents, this time right here in southeastern Connecticut,” State Senator Cathy Osten (D-Sprague) said. “Electric Boat and its subcontractors and hundreds of associated small businesses in this region are going to benefit from our investment today, as are thousands and thousands of Connecticut citizens who will get the training they need to secure a job that will allow them to buy a home, start a family, and live and succeed right here in Connecticut. I want to thank Governor Malloy for moving forward so quickly on these essential projects. It’s a great day for our state, for our region, for our economy and for Connecticut’s future.”
The Connecticut Department of Economic and Community Development (DECD) will provide incentives over the course of the agreement, including a $35 million loan for machinery and equipment through Governor Malloy’s First Five Plus Program with loan forgiveness based on supply chain spend and employment, and up to $20 million from Connecticut Innovations in sales and use tax exemptions for capital and new construction on the Electric Boat campus. As part of the agreement, DECD will also provide EB an $8 million grant, which may only be spent on third-party workforce development initiatives through community colleges, technical high schools, and organizations in Connecticut, such as the Eastern Workforce Investment Board to benefit the company and its manufacturing supply chain.
In addition, the state will provide $20 million for dredging, allowing submarines to be launched from a new dry dock and manufacturing superstructure being built to support new submarine construction.
“This historic agreement will ensure that Electric Boat is capable of meeting its submarine building demands over the next several years while significantly increasing its workforce,” DECD Commissioner Catherine Smith said. “This company is one of the regions most valued employers and their expansion means great things for the regional and state economies.”