Third-party Analysis Shows BIW Tackling Workforce Challenges – General Dynamics

BATH, Maine – An economic analysis released today details how General Dynamics Bath Iron Works has sharply increased its investments in recruiting, training and retaining the newest generation of shipbuilders. The shipyard invested $11 million in recruiting new workers between 2016 and 2023, and over the past five years spent $90 million on training – more than twice what was spent on training in the prior five years. The study also reflected the benefits of partnering with the Maine Community College System, noting that the retention rate for employees completing pre-hire training at the community colleges is 93 percent.

“Bath Iron Works’ ability to be a major driver in the state’s manufacturing economy depends on attracting, training and retaining the workers who make Bath built Best built,” said BIW President Charles F. Krugh. “Our recent efforts have shown that there are great people here in Maine who want to be shipbuilders. We have found that we need to leverage Maine’s secondary educational system to provide them additional training. This skills training enables them to succeed in the entry-level jobs that are the gateway to a long career with potential for both significant earnings and professional growth over time.”

BIW is the largest manufacturer in the state, with 6,700 employees at the start of 2023 and a payroll of $447 million, according to the report. Spending by the company and its employees support additional economic activity, so the total economic output including multiplier effects was $2.5 billion in 2023 and supported a total of 14,200 jobs in Maine.

Spending on recruitment and training, employee wages and purchases from Maine businesses demonstrate that BIW is providing a significant return on recent investments made in the shipyard by federal, state and local governments. Training spending includes safety training, skills training, on-the-job training and wages for employees while they are learning specialty shipbuilding skills.

In 2021, the shipyard arranged for an independent analysis, structured around a five-year lookback, to assess BIW’s overall economic contribution to the state. In this follow-up analysis, the study’s author expanded the scope of the report to explore investments in workforce development more closely.

Some key points from the analysis:

− Starting wages for new-hire employees increased by an average of 15 percent a year between 2021 and 2023.

− More than half of the shipyard workforce has fewer than five years’ experience.

− BIW employees represent 2.3 percent of all private-sector jobs in Maine and 12.4 percent of Maine’s manufacturing workforce.

− Tax revenues generated by BIW wages amount to 12 times the value of the Shipbuilding Tax Credit, which the state approved in 2018. When adding in multiplier effects, tax revenues are 20 times the total value of the credit.

BIW’s ability to continue as an economic engine for Maine will depend in large part on successful partnerships – not just in training, but in overcoming obstacles like access to childcare, transportation and affordability of both housing and education.

“We are working closely with community groups, the U.S. Navy and our congressional delegation to overcome some of the current challenges to workforce participation,” Krugh said. “At the same time, we are investing in important quality-of-life improvements and modernization in the workplace to attract, retain and provide long-term opportunity to the men and women who are essential to the nation’s critical shipbuilding capacity.”

The 2024 economic impact analysis and executive summary were prepared by Ryan Wallace, Ph.D., principal, Wallace Economic Advisors and former Director of the Center for Business and Economic Research at the University of Southern Maine. The report can be found here: Impact on Maine’s Economy – General Dynamics – Bath Iron Works

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 across 65 countries worldwide and in all 50 U.S. states, generating $42.3 billion in revenue in 2023. 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.