15 Nov 2022
Independent report shows Babcock’s significant contribution to the UK economy
New independent research by Oxford Economics reveals the positive impact Babcock had on the UK economy through jobs, investment, and taxes between March 2021 and March 2022
The Oxford Economics report published today highlights how Babcock is supporting levelling up across the UK by investing and supporting employment in the most deprived areas. It also underlines the critical role the company plays in the UK defence sector. Key findings in the report include:
- Over £3.3bn directly and indirectly contributed to UK GDP
- 56,800 jobs supported across the country, with over 22,000 employed across some 264 sites, and a further 34,800 jobs supported in businesses across its UK supply chain
- For every £100 Babcock spends, and every 100 workers they employ directly, they support a further £198 contribution to GDP, and a further 158 jobs
- Babcock’s naval business supports a £2bn contribution to GDP, and 35,200 jobs, with 14,700 directly employed, and a further 20,500 jobs supported in businesses across its UK supply chain
- 48% of Babcock’s UK workforce are highly skilled engineers and technicians. It also employs around 1,250 people on graduate and apprentice programmes.
- £1bn spent with more than 5,700 UK suppliers, including £230m spent with 1,070 suppliers in deprived local authority areas, and £337m spent with 2,200 SMEs
- £770m directly and indirectly contributed to UK tax revenues
David Lockwood, Chief Executive of Babcock, said:
“The extent of our positive impact on the UK is evident in the amount we directly contribute to Britain’s defence capability, and the value this adds throughout our extended supply chain. We are helping create a safe and secure world, and this starts at home, with investment in the UK.
Across the country, our most important investment is in our highly skilled people, and the findings of the Oxford Economics report show the significant impact we are making; our people support thousands of companies and jobs, throughout the UK.
We are proud to be supporting the Government’s levelling up agenda, helping to spread prosperity across areas of the UK that have been worst affected by unemployment and the cost-of-living crisis”
UK Secretary of State for Defence Ben Wallace, said:
“This report serves as a timely reminder of the contribution Defence Industry makes to UK prosperity.
Our National Security depends on our ability to produce and support critical elements and capabilities onshore, but we also have a responsibility to ensure this investment unleashes the immense social value potential of the sector.
I am pleased Babcock are taking a thorough approach to understanding their wider economic value.”
The report found that Babcock directly contributed £1.1bn to UK GDP, including £337m spent with over 2,220 SMEs, and over £230m in the country’s 20% most deprived local authority areas. Their extensive supply chain and employees supported a further £2.2bn contribution, equating to an additional £198 of GDP for every £100 spent by the Company.
Almost half of Babcock’s 22,000 UK employees are skilled engineers and technicians, including some 264 graduates, and almost 1,000 apprentices mostly based in naval engineering, support and systems. New programmes aimed at recruiting and training lower- and semi-skilled workers, including NEETs, are providing vital opportunities to those in the most deprived local authority areas in the UK, where 7.5% of the Company’s workforce currently live and work.
Now, more than ever, investment in defence is essential, and Babcock’s naval business contributed £2bn to UK GDP, supporting 35,200 jobs, reinforcing its importance to UK shipbuilding. Major dockyards at Devonport and Rosyth helped to contribute £1.1bn and £370m to the South West and Scotland GDP, respectively, while supporting 19,400 and 6,300 jobs in those regions.
Visit https://www.babcockinternational.com/where-we-do-it/uk/ for more information, to view the film and to download the infographic, full report, and executive summary documents.
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