General Dynamics Electric Boat Investing $800M In Connecticut

The company will retain and grow its workforce to more than 13,000 jobs over the next 17 years, with help from up to $63 million in state incentives. 


https://businessfacilities.com/2018/05/general-dynamics-electric-boat-investing-800m-connecticut/
The company will retain and grow its workforce to more than 13,000 jobs over the next 17 years, with help from up to $63 million in state incentives. 
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General Dynamics Electric Boat Investing $800M In Connecticut

The company will retain and grow its workforce to more than 13,000 jobs over the next 17 years, with help from up to $63 million in state incentives. 

General Dynamics Electric Boat Investing $800M In Connecticut

General Dynamics Electric Boat (EB) will grow its workforce in Connecticut by nearly 1,900 employees, bringing the total to more than 13,000 by 2034, with help from up to $63 million in support from the state. The state incentives will allow for capital investments of greater than $800 million over the next 17 years, and more than double the company’s 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.

“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,” said EB President Jeffrey S. Geiger. “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.”

Connecticut
Photo: General Dynamics Electric Boat

EB 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 aging Ohio-class. To support this increased manufacturing, EB will be training and hiring 18,000 new employees over the next decade.

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 Dannel P. 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 EB 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.

Over the course of this agreement, EB 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.

“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,” said Gov. Malloy. “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 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,” said DECD Commissioner Catherine Smith. “This company is one of the regions most valued employers and their expansion means great things for the regional and state economies.”

Relocating or Expanding Your Business In Connecticut

Considering Connecticut for your company’s relocation or expansion project? Check out Business Facilities’ Connecticut Incentives and Workforce Development Guide.

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