A new report published by Oxford Economics reveals BAE Systems’ major contribution to the UK’s economic prosperity.
Accounting for one per cent of UK exports and 0.46 per cent of GDP*, the Company’s UK operations support highly skilled jobs, quality training and education, an extensive UK supply chain and research and development activities that are advancing the nation’s technological capability. ‘The Impact of BAE Systems on the UK Economy’ provides a comprehensive analysis of BAE Systems’ economic impact in the UK at national and regional levels, examining the contribution of its employees and the wider supply chain, as well as the value of its exports and technological innovation to the broader economy.
Key points:
BAE Systems contributes a total of £7.9 billion to the UK economy, comprising direct, supply chain and workforce consumer spend contributions, equivalent to 0.46 per cent of the UK’s total GDP;
It is one of the most productive Companies in the UK, with labour productivity of £95,000 per worker, more than twice the national average;
It exports £3.9 billion of goods and services account for one per cent of all UK exports;
BAE Systems’ supply chain comprises 7,000 companies and annual spending in the UK is in excess of £3.9 billion;
The Company sustains 122,700 jobs in the UK, and invests around £80 million in training per year. In 2015, BAE Systems will recruit over 800 apprentices and 300 graduates, including some that will go on to work for small and medium-sized enterprises;
BAE Systems is driving the UK’s technology innovation, managing £695 million in research and development investment with over 1,200 registered patents; and
It is a significant contributor to regional economies, including the Northern Powerhouse, BAE Systems’ operations create economic value in the North West (Lancashire and Cumbria), Scotland (Glasgow) and the South (Portsmouth) regions.
*All annual data based on 2013 – the most recent available data – unless otherwise stated
Commenting on the report, BAE Systems’ Chairman, Sir Roger Carr said:
“Our business and the many thousands of companies we work with across our supply chain are driving prosperity throughout the UK, providing valuable jobs and training. As one of the UK’s leading providers of quality apprenticeships, we have extended our commitment further, pledging to employ 2,000 apprentices by 2018.
“Our employees are incredibly proud to play a key role in protecting and serving the Armed Forces that protect and serve us. In doing so, BAE Systems makes a material contribution to the economic health of the country as well as to the safety of the nation.”