BAE Systems pumped more than £80 million into the Cumbrian economy, new research has revealed.
A report by Oxford Economics examined BAE Systems’ contribution to the UK economy.
The company employs around 10,000 people in its Submarines business, with the majority based at its shipyard in Barrow.
Its workforce accounts for about a quarter of the local working population.
BAE Systems is delivering the Astute and Dreadnought submarines for the Royal Navy, as well as early phase concept design work on a replacement for the Astute class.
The company spent over £80 million with more than 100 suppliers in Cumbria in 2020, supporting 1,380 jobs in the region’s supply chain.
The firm has 50 sites across the UK and, including the supply chain, the research found that it supported 143,000 jobs across the country and contributed more than £10 billion to UK GDP, equivalent to 0.5 per cent of the domestic economy.
Charles Woodburn, BAE Systems chief executive, said: “Our sector not only supports our national defence and security, but also provides unparalleled economic value which drives the UK’s prosperity.
“The investment we make in highly skilled jobs, research and development and our extensive supply chain supports thousands of companies and tens of thousands of people and the communities in which they live.”
Minister for Defence Procurement, Jeremy Quin, said: “In every region of the UK, Defence is driving prosperity, protecting the economy, providing jobs and building skills.
“BAE Systems is a leading light in that progress, helping us level up the country by supporting tens of thousands of jobs as we build back better from COVID-19.
“Through the Defence and Security Industrial Strategy, we are deepening the relationship between government, industry and academia to bolster British innovation.”
Jo Lappin, chief executive of Cumbria Local Enterprise Partnership , said: “Locally, the Submarines business makes a significant contribution to both Barrow and Cumbria, more widely, providing active leadership on socio-economic issues in a range of settings from chairing the Barrow Town Board to leading economic recovery and growth through its engagement with the LEP.
“They have also directly supported businesses and local institutions to grow by providing expertise, advice and resource.
“They are grounded in place, providing long term quality employment that really does support levelling up.”
The report also found that more than two-thirds of the company’s UK employees are in engineering-related roles and the research found that the highly skilled and technical nature of their work results in an average productivity of £83,000 per employee.
BAE Systems invested £93 million in skills, training and development activities in 2020, the report said.
That included more than 2,000 apprentices and nearly 600 graduates.
This year BAE Systems will recruit almost 1,700 apprentices and graduates across the country – 25 per cent up on last year and the largest intake it has offered in a single year – including more than 500 in Barrow.
BAE Systems’ training academy at Barrow delivers technical training to more than 1,000 apprentices and experienced employees a year.
