Construction of Virginia-class submarines at a Rhode Island shipyard, exemplifying local industrial growth.
The U.S. Navy has awarded an $18.4 billion contract to General Dynamics for the production of two Virginia-class submarines, boosting Rhode Island’s economy. With $12.4 billion allocated initially, the deal promises job growth and development in the defense sector. As Electric Boat ramps up production, thousands of new hires are anticipated, supporting the local workforce alongside additional funding for defense initiatives. This contract is a significant victory for Rhode Island’s industrial base and economy.
The U.S. Navy has awarded an $18.4 billion contract to General Dynamics Corporation for the production of two Virginia-class fast attack submarines. This contract is set to significantly bolster Rhode Island’s economy and job market, contributing to the local industrial base and workforce development efforts.
Under the contract, General Dynamics Electric Boat Corporation will initially receive $12.4 billion, with the total potentially increasing to $17.2 billion if all options within the contract are exercised. Newport News Shipbuilding, part of Huntington Ingalls Industries, has also secured $1.3 billion as part of this extensive agreement. Production of the submarines will take place across various facilities in Quonset Point, Rhode Island, Groton, Connecticut, and Newport News, Virginia. The Navy expects to complete these submarines by June 2036.
Senator Jack Reed, a prominent figure in Rhode Island politics, was instrumental in securing this significant contract. He emphasized that it represents a major victory for the workforce in Rhode Island, providing essential job stability and growth in the defense sector. The contract is anticipated to enhance operational efficiencies that will save taxpayer money while ensuring the viability of Rhode Island’s industrial landscape.
As Electric Boat ramps up production, the company is preparing to hire thousands of new workers in the coming years. Currently, Electric Boat employs over 24,000 individuals across its facilities and offices in Rhode Island and Connecticut, with plans to substantially increase this workforce to meet the demands of the new contract.
Senator Reed also played a key role in securing additional funding for defense initiatives, obtaining over $7 billion for the Fiscal Year 2025 National Defense Authorization Act (NDAA) directed toward the Virginia-class submarine program. Additionally, he facilitated multiple federal grants that will aid SENEDIA in developing a workforce partnership aimed at onboarding up to 5,000 workers for submarine production jobs.
A 2022 report highlighted that defense spending generated an impressive $7.6 billion economic impact in Rhode Island, supporting over 34,000 jobs and contributing $3 billion in annual payroll to the local economy. The state is home to several significant defense facilities, including the Naval Undersea Warfare Center, Naval Station Newport, and the Naval War College, which all play vital roles in the defense sector.
Electric Boat’s hiring push comes at a critical time, as the company faces increasing production demands due to the rise in submarine contracts and the anticipated retirement of older employees. The U.S. Navy has already taken delivery of 24 Virginia-class submarines and currently has an additional 16 submarines under contract, reflecting a robust pipeline for submarine production in the coming years.
In addition to the submarine contract, MIKEL Inc., a defense technology firm based in Middletown, Rhode Island, recently secured a $14 million contract with the U.S. Navy for improving torpedo algorithms. This contract aligns with the Navy’s ongoing strategy to enhance the performance and efficiency of its deployed torpedoes, addressing the increasing challenges faced globally.
The Naval Undersea Warfare Center has also revealed a funded program totaling $2 billion for 2024, with substantial investments earmarked for operational expenses and small business contracts within Rhode Island. The combined impact of these contracts and initiatives underscores the critical role that the defense sector plays in supporting the local economy and job market.
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