Scottish shipbuilding revival to inject £342m into economy

According to an exclusive report by Brian Donnelly, available here, the revival of Scotland’s shipbuilding industry is projected to significantly boost the economy by £342 million annually.

An analysis conducted by finance firm Rift reveals that despite the industry’s decline since its peak in the early 1900s, Scottish shipbuilding has maintained steady performance in recent years.

This resurgence, supported by increased spending and defence investments, is expected to bolster the Scottish economy.

Recent figures show that the Scottish shipbuilding sector employed 6,700 workers in 2021, which represents just 0.36% of Scotland’s total employment. This number is 12% lower than the peak of the last decade when 7,600 workers were employed in 2017. However, the employment rate has been on a steady climb, reaching 6,700 workers in 2021, with the sector turning over £1.022 billion that year.

Rift’s analysis suggests that doubling the current employment figures to 13,400 could push the industry’s turnover to £2.414 billion, with the gross value added (GVA) to the Scottish economy increasing to £741 million annually, marking a £342 million boost compared to the GVA in 2021.

Bradley Post, managing director of Rift, was quoted in the article as saying, “Scotland is a fiercely proud nation and this is certainly no different when it comes to the nation’s proud history of shipbuilding, as demonstrated by the fight to keep the sector alive by the workers, in particular, in recent history. While the industry today remains a far cry from its glory days of the 1900s, it has, at least, benefited from calmer waters in recent years, with employment figures remaining fairly consistent and the sector still turning over a billion pounds a year.”

Read more at the source.

I recently reported a significant uptick in employment in Scotland’s shipbuilding industry, now directly employing over 7,000 people and providing more than 1,000 apprenticeships. Babcock and BAE Systems have been instrumental in driving this growth through strategic investments in capacity and capability enhancement.

Babcock currently employs more than 3,500 people in Scotland and has over 180 apprentices. The company plans to grow these numbers with 1,000 new apprenticeships and has invested £35 million in a new digitally enabled build hall at its Rosyth facility. This facility, known as the Venturer Building, is capable of housing two Type 31 frigates side by side for parallel build and assembly.

Scottish shipbuilding sees increase in jobs

BAE Systems in Glasgow employs around 3,750 people and has approximately 600 apprentices and graduates. In 2024, BAE Systems aims to recruit almost 2,700 apprentices and graduates across the UK, with 300 based in Glasgow. Additionally, the company is constructing a new £12 million Applied Shipbuilding Academy at its Scotstoun shipyard to develop the existing workforce and attract new talent to the industry.

David Lockwood, CEO of Babcock, highlighted the importance of apprenticeships, stating, “Apprenticeships play a really important role in workforces across the UK, ensuring we can sustain the technical skills needed to continue to deliver critical national defence programmes, while offering exciting opportunities with direct benefits to local communities.”

Simon Lister, Managing Director of Naval Ships at BAE Systems, echoed these sentiments, stating, “We have a proud tradition of equipping our apprentices with the skills and training needed to develop long and rewarding careers. They are the next generation of shipbuilders that will design and build ships for the Royal Navy for decades to come.”