This significant contribution is in addition to the important and ongoing impact of BAE Systems’ activities in Australia which, the report shows, contributed $1.2billion in 2017 through its work to support the Australian Defence Force at more than 25 major sites across the nation.
The report, ‘The economic impact of BAE Systems in Australia’ produced by BIS Oxford Economics shows that every job directly created on the Hunter Class Frigate Program will have a multiplier effect of 2.7 in 2028. The program’s demand for a highly skilled workforce will also boost advanced technology skills and know-how in South Australia and nationwide.
The economic modelling shows that the program will also have wide ranging effects on Australia’s GDP. The report estimates that BAE Systems’ involvement with the Hunter Class Frigate Program will contribute a total of $17 billion to national GDP over the project lifetime (2018-19 to 2047-48). Of this, some $7.1 billion will be contributed by BAE Systems direct activities, while the procurement chain will contribute an additional $4.4 billion.
BAE Systems Australia Chief Executive Gabby Costigan said:
“BAE Systems has for several decades played a critical role in ensuring the security and prosperity of Australia. We are pleased to release this report today demonstrating that BAE Systems’ involvement in the Hunter Class Frigate Program alone will more than double the company’s already significant contribution to the national economy.
“Australia’s defence industry plays an indispensable role in supporting the Commonwealth Government as it adapts to our changing security environment and grows the capability needed to better protect the nation.
“As regional defence priorities have changed, we have supported the development of a stronger and more capable sovereign defence industry.