Yes, well may the UK Minister for Investment Lord Johnson say in response to new research from Oxford Economics:
“Our defence sector is driving growth, investment and jobs in every corner of the UK, helping to grow the economy and keeping us at the cutting edge of innovation” and that “BAE Systems’ contribution to this cannot be overstated” adding “ that this new research underlines just how vital they are to our world-leading defence industry.”
But is the UK Government doing enough to support vital industries such as defence in potential export markets? Are we, for example, doing more or even simply matching the level of support provided by the French Government it its defence and other industry sectors? The jury is still out and the probably is that we are not and need to do more.
Even so, the Oxford Economics report on BAE Systems contribution to the UK economy makes very interesting reading highlighting as it does the extent and vital contribution of what the company brings to the to the UK economy. This includes creation and sustaining of thousands of highly skilled jobs, the funding of massive ongoing research that is driving the ambition to place technology and innovation at the heart of UK economic development and of course and the vital role that the company plays in sustaining a vibrant national supply chain and in exporting.
Importantly, the newly published research details the extent of BAE Systems’ contribution to the UK economy as a whole and confirms that its operations supported no fewer than 132,000 full-time equivalent jobs across the UK, benefiting every region, and that the Company contributed £11 billion to GDP – equivalent to 0.4% of the domestic economy.
Without doubt, we can all be very proud that BAE Systems is today delivering some of the world’s most advanced defence equipment programmes – from Astute and Dreadnought class submarines, Type 26 Frigates all the way through to next-generation combat air systems in the form of leading the Tempest partnership. It continues to support many international programmes such as Eurofighter Typhoon and the F-35 Joint Strike Fighter. All of this and what the company does is complex work and it relies on the skills, expertise and dedication of the many BAE Systems employees, contractors, trade unions and suppliers involved right across the UK.
Charles Woodburn, BAE Systems Chief Executive Officer said:
“As one of the UK’s largest employers, we recognise our responsibility to help deliver economic prosperity as well as national security. Our continued investment in skills, technology and the communities where we live and work supports thousands of jobs and is creating opportunities for people to play an important role in helping to keep our country and our allies safe.”
James Cartlidge, Minister for Defence Procurement said:
“We cannot keep the nation safe without the extensive support of the UK Defence industry” adding that “Defence companies support jobs and provide important boosts to local economies across the country. BAE Systems is no exception, driving prosperity and putting skills-building at the heart of their work.”
Data published in the Oxford Economics ‘BAE Systems’ contribution to the UK economy’ report shows that since 2020, the company has grown its UK workforce by more than 10%. In 2022, BAE Systems directly employed almost 40,000 people, supported a further 49,000 jobs across the supply chain and thousands more in local communities. Almost 40% of BAE Systems employees are based in the UK’s most deprived areas, where long-term employment opportunities are crucial for local economies to grow. Last year, the Company spent £730 million with suppliers in these locations and provided mentorship and support for SMEs to help boost regional businesses.
Another important aspect highlighted in the report is that strong partnerships across industry, academia and SMEs play a vital role in BAE Systems’ work and also that the company spent £3.9 billion with around 6,000 suppliers in 2022 – bringing investment and employment to every part of the UK from the Scottish Highlands to the Isle of Wight.
In addition, BAE Systems has grown its various university partnerships and invested £1.4 billion in research and development last year, both self-funded and on behalf of its customers, helping sustain the UK’s valuable engineering and technology sectors.
Importantly, the report shows that close to three-quarters of BAE Systems’ employees work in engineering-related roles and that in order to maintain this pipeline of talent, the company spent £180 million on education and skills last year – close to double the amount spent on annual investment in the previous year.
As well as supporting educational outreach in its communities, it is investment such as this that allows BAE Systems to provide lifelong development for its workforce and helps give its more than 4,300 apprentices and graduates the best start to their careers.
BAE Systems was once again recently named as one of top UK apprenticeship employers in the Department for Education’s latest rankings and the company is currently hiring a record number of 2,600 apprentices and graduates in the UK in 2023, a more than 40% increase on last year.
BAE Systems is of course a global company with operations spread around the world in various home markets. It is also one of Britain’s leading exporters and last year exported £3.7 billion of goods and services from the UK – equivalent to almost 0.5% of all UK exports, making a significant contribution to global trade.
CHW (London – 30th June 2023)
Howard Wheeldon FRAeS
Wheeldon Strategic Advisory Ltd,
M: +44 7710 779785
Skype: chwheeldon
@AirSeaRescue