Bath Iron Works’ efforts to boost its workforce has shown progress, in spite of Maine’s demographic challenges and stagnant population.

An economic impact report released this week by Wallace Economic Advisers shows the company has sharply increased its investments in recruiting, training and retaining the newest generation of shipbuilders. 

From 2016 to 2023, BIW invested $11 million in recruiting and has spent $90 million on training over the past five years, according to the report. The study highlights benefits of a partnership with the Maine Community College System, noting the retention rate for employees completing pre-hire training within the community college system is 93%.

“Our recent efforts have shown that there are great people here in Maine who want to be shipbuilders,” said BIW President Charles Krugh. “We have found that we need to leverage Maine’s secondary educational system to provide them additional training.”

BIW is the largest manufacturer in Maine, with 6,700 employees at the start of 2023 and a payroll of $447 million. The average annual pay is $66,473, above the state average of $58,372 and in line with Maine’s annual $65,284 manufacturing sector wages, according to the report.

Among the other findings, BIW accounted for 12.4% of Maine’s manufacturing employment and approximately 6.7% of all shipbuilding jobs in the United States.

The report also indicates 60% of the workforce has less than five years of experience, stemming in part from the shipyard’s effort to recruit workers who are starting out. Hiring has been challenged by Maine’s demographic shortcomings.

Year-over-year population increases in Maine have dwindled to the point where the natural population — not including in-migration — is declining. The number of Mainers progressing through high school is expected to drop 14% over the next decade, and out-of-state recruitment is proving impractical due to the lack of housing in the Midcoast.

Historically, job losses filed by mill closures in pulp and manufacturing in the past few decades provided skilled workers for BIW to recruit. However, these labor pools have nearly dried up, forcing BIW to adapt its workforce recruitment strategy.

The study’s author, Ryan Wallace, highlighted key points, including the fact that starting wages for new-hire employees increased an average of 15% a year between 2021 and 2023.

Besides the Maine Community College System, BIW partners with several educational institutions for training programs and career development, including Maine Maritime Academy, the University of Maine System and the Roux Institute at Northeastern University.

“We are working closely with community groups, the US 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.”

An open house will be held at BIW’s Brunswick Landing facilities on Nov. 15, beginning at 8 a.m. and ending at 2 p.m., for several hundred high school students involved in the state’s Career and Technical Education programs.