Home Lancashire News Ensuring security and prosperity: Report reveals BAE Systems’ major contribution to the...

Ensuring security and prosperity: Report reveals BAE Systems’ major contribution to the UK’s economic prosperity*

SHARE
With some 50 site across the UK, BAE Systems makes a significant contribution to regional economies across the UK

The nation’s largest defence, aerospace and security company accounts for almost 1 per cent of all UK exports and 0.6 per cent of the country’s entire economic output, according to an independent report by Oxford Economics. BAE Systems is one of the most productive companies  in the UK, with labour productivity levels almost 80 per cent greater than the national average, reflecting its investment in its highly skilled workforce, research and development expenditure and capital investments.

Key findings of the detailed analysis in ‘The Contribution of BAE Systems to the UK Economy’ report for 2016 include:

• BAE Systems’ operations contribute £11.1 billion to the UK economy, equivalent to 0.6 per cent  of GDP, comprising direct, supply chain and workforce spending contributions
• It is one of the most productive companies in the UK, with labour productivity of £128,000 per employee, almost 80 per cent above the national average
• It exports £4.7 billion worth of goods and services, equivalent to 0.9 per cent of UK exports
• It spends £4 billion on goods and services with some 8,900 suppliers across the UK, representing 79 per cent of its total procurement
• It supports nearly 130,400 full time equivalent (FTE) jobs in the UK, including some 14,000 jobs in the North West region, which is equivalent to one in every 38 FTE jobs
• Almost two thirds of BAE Systems’ staff are employed in engineering or engineering related roles, with more than 1,600 apprentices and just under 500 graduates in training as of November 2017
• It invests £1 billion in UK research and development, including investment from the UK Ministry of Defence.

With some 50 sites across the UK, including major centres of expertise in military aircraft in the North West, and thousands of suppliers nationwide, BAE Systems makes a significant contribution to regional economies across the UK. The company spends some £700 million with suppliers in the North West alone.

BAE Systems Chairman, Sir Roger Carr, said: “BAE Systems plays a critical role in ensuring the security and prosperity of the UK and we prioritise investment in skills, capital and technology to support our continued growth in productivity and exports. We recognise our responsibility to support wider industry and the positive role we can play in addressing the UK’s productivity challenge. We are proud to work with the thousands of UK companies across our supply chain on some of the world’s most complex engineering programmes and together we create skilled jobs, develop new technologies and play our part in driving prosperity in regions across the UK.”

ADS Chief Executive, Paul Everitt, said: “Productivity is a national challenge, but this report shows that companies like BAE Systems who invest in skills and technology are making great strides forward. The UK defence sector has seen productivity rise by 23 per cent since 2010 compared to 3 per cent in the economy as a whole, and BAE Systems is playing a key role in that vital success story.

“With almost 9,000 companies in its supply chain right across the UK, the beneficial economic impact of BAE Systems’ success both at home and overseas is felt on a truly national scale.”

*All annual data is based on 2016 figures unless otherwise stated.

SHARE
Phil Ghayour
The Samuel James Group’s new Events, PR, and Marketing Executive, Philip has a degree in Journalism from the University of Salford and has completed an MSc Marketing from Lancaster University, Philip has also worked at BBC Radio Lancashire, Clitheroe Football Club and Accrington Stanley Football Club.