A new report by Oxford Economics has revealed the crucial role played by British Defence Giant BAE Systems’ Air business in bolstering economic growth, while supporting national security.
Through cutting-edge technology, high-quality job creation, and an extensive UK supply chain, the British aerospace giant is not only securing the nation but also driving innovation and prosperity across the country, particularly in the North West of England.
In 2023 alone, BAE Systems’ Air business:
- Contributed over £5 billion to UK GDP, alongside £2.6 billion in exports—a figure that has doubled since 2016.
- Delivered £220 million in tax revenues to the UK Government.
- Supported nearly 70,700 jobs across the country, with 20,000 of these in the North West.
The business partnered with 1,400 UK suppliers, returning nearly £2.5 billion to British businesses through its supply chain, demonstrating its extensive reach and influence on the UK’s industrial base.
Driving Innovation and Skills Development
At the forefront of innovation, BAE Systems’ Air business is a cornerstone of the UK’s defence industrial base. Programmes like Typhoon and Tempest not only secure the UK’s sovereign defence capabilities but also generate significant economic benefits.
Currently, BAE Systems’ Air business has over 1,400 apprentices and graduates engaged across its operations, ensuring a pipeline of talent for the future. The report highlights that the average productivity of the company’s workforce is 15% above the national average, reflecting the high level of skills and expertise within the organisation.
Simon Barnes, Group Managing Director of BAE Systems Air, said:
“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, with average productivity 15% above the national average. The benefits delivered for the UK are clear and significant.”
A Vital Role in UK Defence and Security
The report underscores the importance of sustained investment in combat air systems and UK-owned defence technology. As a leading exporter, BAE Systems’ Air business is pivotal in ensuring the UK maintains its edge in aerospace and defence, contributing to both economic resilience and national security.
Kevin Craven, CEO of ADS, noted:
“Military aerospace is a pivotal part of the UK economy. The UK’s strong defence industrial base, driven by export-generating companies like BAE Systems and its supply chain, is vital for our continued security. Collectively, the UK’s aerospace sector creates 104,000 jobs across the country and ensuring the sector thrives is deeply important for securing UK advantage.”
Boosting Regional Economies
The North West of England benefits significantly from BAE Systems’ presence, with 20,000 jobs supported in the region. The business’s partnerships with local suppliers and commitment to skills development make it a cornerstone of the region’s economic landscape.
Securing the UK’s Future
As the UK faces growing global uncertainty, the findings of this report highlight the importance of continuing to invest in advanced defence programmes and the infrastructure that supports them. The achievements of BAE Systems’ Air business underline its essential role in securing both the UK’s economic and national security.
With its strong contribution to the nation’s GDP, its support for thousands of highly skilled jobs, and its focus on innovation, BAE Systems Air is ensuring that Britain remains a global leader in defence and aerospace.
Read the report here.
Photo: Two Royal Air Force Typhoons. Photographer: Flt Lt Andy Donovan Copyright: UK MOD © Crown copyright. MOD Crown Copyright News / Editorial Licence.
