Bath Iron Works, a major shipbuilding facility in Maine, accounts for approximately 1.6% of the state’s gross domestic product (GDP), not 17% as some claims have suggested. This distinction arises from confusion between different economic measures labeled similarly in past reports.
The claim that Bath Iron Works represented 17% of Maine's economy stems from a 2022 press release citing a commissioned study that identified the shipyard as responsible for 17% of Maine’s “production GDP” in 2021. Production GDP differs from total GDP as it captures manufacturing-related output only, excluding broader economic activities. The release did not equate this figure to 17% of the state’s entire economy.
A comprehensive report published in 2024 estimates Bath Iron Works' statewide economic output at $2.55 billion for 2023. This figure includes the value of the shipyard’s direct activities, supplier purchases, and employee spending spread across the state. However, output totals include intermediate goods and services purchased from other firms, which GDP calculations exclude to prevent double counting.
The same report estimates the shipyard's value added—the figure comparable to GDP—at $1.28 billion for 2023. This accounts for just 1.6% of Maine’s total GDP. Bath Iron Works employed 6,722 workers in 2023, representing about 12.4% of Maine’s manufacturing workforce.
This clarification responds to ongoing discussions about Bath Iron Works’ economic role and helps dispel inaccurate interpretations of its contribution to Maine’s economy.