A historic $76.6 billion contract won by General Dynamics Electric Boat will boost Connecticut’s economy, according to economists.
The multi-year contract to build 14 U.S. Navy Virginia and Columbia-class submarines is a positive development for Connecticut, which has struggled economically for the past 40 years, said Fred Carstensen, finance professor and economics director at UConn.
“This phenomenal contract ought to be the motivation to put together a very serious effort to look at Connecticut’s economic future and how we can maximize the benefits that are going to fall from this,” Carstensen said.
About 8,000 additional jobs would be created at the Groton shipyard, said Dustin Nord, the director of the Connecticut Business and Industry Association Foundation.
“For every job we have in shipbuilding, we usually are supporting another two to four jobs in that space, so it’s a big deal for the Connecticut economy, especially southeast Connecticut,” Nord said.
He said work at the shipyards and thousands of supply chain companies would be secure into the late 2030s.
The contract includes $42 billion for the construction of nine Virginia-class and $29 billion for five Columbia-class submarines. There’s also five billion for shipyard enhancements.
