BATH, Maine – An economic analysis released today shows that General Dynamics Bath Iron Works generated $1.8 billion in economic output in 2021 and supported 11,600 jobs between direct and indirect spending including multiplier effects. The report’s authors calculate that state and local taxes paid on those wages amounts to $44 million per year.
“For generations, Bath Iron Works has had a major impact on Maine’s economy and its people, well beyond the Mid-coast region where we are located,” said BIW President Chuck Krugh. “Our employees come from every county in the state and we purchase millions of dollars in goods and services from vendors across Maine. Ensuring a healthy economic climate for businesses like BIW has far reaching implications for the overall prosperity of our state and its people.”
BIW has for years been known to be the largest manufacturer in the state, but its impact as an economic driver for Maine has not always been fully understood or clearly articulated. In 2021, the shipyard arranged for an independent analysis, structured around a five-year lookback, to assess our overall economic contribution to the state and how BIW is helping Maine address its significant workforce challenges. “The Impact of Bath Iron Works on the Maine Economy” was prepared by the Center for Business and Economic Research at the University of Southern Maine.
The wages paid to employees and BIW’s spending on recruiting and training its workforce, coupled with BIW’s purchases from Maine businesses, make an ongoing, significant and positive impact across the state. These impacts indicate that BIW has provided a significant return on investments made in the shipyard over the years by federal, state and local governments.
Some key points from the analysis:
- BIW employees earned $380 million in 2021.
- BIW represents 12 percent of the state’s manufacturing workforce and 17 percent of its production GDP.
- Tax revenues generated by BIW wages amount to 11 times the value of the Shipbuilding Tax Credit which the state approved in 2018.
- Over the past five years, the shipyard hired 6,363 workers.
- In 2021 alone, 690 of those new employees came here from out of state.
Preserving and advancing the shipyard’s positive economic impact will require overcoming hurdles similar to those confronting smaller businesses, challenges like workforce housing, childcare, and transportation, Krugh said. Addressing these problems, identified as critical needs for sustainable growth by a number of studies, will require expanded public-private partnerships, he said.
“Our team at BIW produces ships that defend our nation, while the work we do also brings prosperity to our state. Investments in BIW have proven to be a win-win for our nation, our communities and our people,” Krugh said. “As we work to make BIW an even stronger company, we look to join with other stakeholders in exploring ways to overcome the challenges facing Maine businesses and the men and women who work at them.”
The economic impact analysis and executive summary were prepared by Ryan Wallace, Ph.D. in his capacity as Director of the Center for Business and Economic Research, University of Southern Maine. They are available here.
General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 100,000 people worldwide and generated $38.5 billion in revenue in 2021. More information about General Dynamics Bath Iron Works can be found at www.gdbiw.com. More information about General Dynamics is available at www.gd.com.
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