Rhoads Industries, GDEB sign $2.5B deal to support US Navy submarine construction

July 21, 2026, by Fatima Bahtić

Rhoads Industries has signed a long-term agreement with General Dynamics Electric Boat (GDEB), a business unit of General Dynamics, to provide advanced manufacturing and shipbuilding support services for US Navy submarine construction programs.

The agreement covers a ten-year period from 2026 to 2035 and is valued at approximately $2.5 billion, further strengthening the longstanding partnership between Rhoads Industries and General Dynamics Electric Boat while supporting efforts to expand the US submarine industrial base.

Under the agreement, Rhoads will continue providing steel fabrication, structural assembly, outfitting, and other shipbuilding support services from its operations at the Philadelphia Navy Yard.

The work is expected to average approximately 1.4 million workforce hours annually, supporting one of the region’s largest long-term shipbuilding programs, according to the partners.

As production ramps over the life of the agreement, Rhoads expects its workforce to approach 1,500 employees, an increase of more than five times the company’s workforce at the end of 2023.

Rhoads Industries is expanding its manufacturing infrastructure to support the agreement, including the construction of Building 57A at the Philadelphia Navy Yard.

The purpose-built facility is scheduled for completion in June 2027 and will increase the company’s production capacity for US Navy submarine programs.

“This agreement represents far more than a contract—it is a long-term investment in American manufacturing, the skilled workforce that powers our industry, and the future of our nation’s maritime defense,” stated Mike Rhoads, President of Rhoads Industries.

“This long-term agreement reflects the confidence that comes from years of successful partnership and consistent performance. Our workforce has earned a reputation for delivering on the Navy’s most demanding shipbuilding programs, and we are proud to continue that legacy with General Dynamics Electric Boat as we help expand the industrial capacity needed to support one of our nation’s highest defense priorities.”

“Rhoads Industries has earned our confidence through consistently improving its performance and focusing on the high standards of submarine shipbuilding,” said Mark Rayha, president of General Dynamics Electric Boat.

“This long-term agreement reflects our shared commitment to grow and strengthen the nation’s submarine industrial base.”

General Dynamics Electric Boat designs, builds, repairs and modernizes nuclear submarines for the US Navy. Recently, the company was awarded a $15.38 billion contract modification to accelerate production and long-term support for its Columbia-class and Virginia-class submarine programs through 2035.