BAE Systems’ Air Business adds 5 billion to UK GDP and supports over 70,000 jobs

By Defence Industry Europe

A new report by Oxford Economics has outlined the substantial economic contribution of BAE Systems’ Air business, which supported over 70,700 jobs across the UK and contributed £5 billion to the nation’s GDP in 2023. The report also highlighted the company’s strong export performance, with revenues reaching £2.6 billion, doubling since 2016.

 

The Air business operates across 21 UK locations and collaborates with 1,400 UK suppliers, injecting nearly £2.5 billion into the domestic supply chain. The report indicates that the business has an average productivity rate 15% higher than the national average and contributed £220 million in tax revenues to the UK government.

Simon Barnes, Group Managing Director of BAE Systems Air, stated: “At a time of great uncertainty around the world, our core focus is to serve, supply and protect those who serve and protect us. This report demonstrates how we are boosting national economic growth and job creation.” Barnes also stressed the importance of investing in sovereign defence capabilities and UK-owned intellectual property.

 

 

The company’s activities have a significant impact in the North West of England, where 20,000 of the supported roles are based. These jobs span areas such as combat air design, engineering, and support services, underlining the business’s role in maintaining the UK’s defence expertise.

Kevin Craven, CEO of ADS, commented on the wider significance of the defence sector: “The UK’s strong defence industrial base, which is driven by export-generating companies like BAE Systems, is vital for our continued security. Ensuring the sector thrives is deeply important for securing UK advantage.” According to ADS, the aerospace sector as a whole supports 104,000 jobs across the country.

 

Link to report: BAE Systems website.

 

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