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.
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.”
I’m delighted to see RN ships actually being built in sensible numbers finally.
Where in the UK I don’t honestly care provided they are built to quality and budget.
The fact they are being built in Scotland is fine by me particularly as the SNP shot its own fox.
My real question relates to launch dates…..as nobody has launched a large warship in the UK since the last T45 and that required the whole of UK warship building on team I’m getting a bit nervous about the lack of a T31 launch date or even roll outside date…..unless I’m missing something in the story?
Normally launch dates are well trailed but the silence from Babcock is deafening.
Not sure what you mean by launched. The future HMS Glasgow was floated off only about 18 months ago. If you mean commissioned or undergone sea trials, that’s yet to come, but I don’t think we need to be too nervous about it. I’d hope that BAE will have banned superglue from Govan.
I’m not too worried about the apparent delays to Venturer either. It’s the first ship of its class, the first built from scratch by Babcock, the first built fully at Rosyth, and so on. I’d have been surprised if it had come out on time. The sale of Argyll is a far bigger worry to me.
I was referencing Babcock’s deafening silence not BAEs.
I thought that supergluing was now a core part of the skillset just like welding…..
Well said Sir, BAe really has got the bit between its teeth on the Clyde and has reinvigorated its supply chain throughout the U.K. and beyond.
Like yourself I look at the sparse trickle of information coming out of Rosyth and am more than slightly concerned about what I see. It’s now past a slight delay it’s a Thunderous Silence of nothingness,
Long term I just have to wonder if MOD have saddled themselves with a long term support issue. I know Babcock are on a very tight budget but the T31 seems to avoid component commonality with the rest of the RN like a mantra.
On the other hand the T26 and its derivatives is shaping up to be the largest class of Frigates designed in the UK for decades and the knock on effect into the supply chain shouldn’t be discarded.
I’m not all negative about Babcock and I suspect t that the reason for the delay is Mk41 and other things that were agreed in the settlement of the cost inflation issues.
But I do think that a bit better trailing of facts should go on – not to a level that undermines security – but to a level that equals BAEs better informational flow.
Some recent photos of Venturer here:
https://
http://www.royal.uk/news-and-activity/2024-04-12/the-princess-royal-visits-hms-venturer-in-rosyth
She could do with a lick of paint, but the hull fabrication looks almost complete.
You can see some recent pictures of Venturer if you Google:
“The Princess Royal visits HMS Venturer in Rosyth”
Pick the website titled “The Royal Family” 4th photo down
Looks like the hull fabrication is mostly complete …she needs some paint !!
It’s really fantastic that Britain is again building up the strength of the Royal Navy with new ships being built in Scotland, thanks to the UK investing taxpayers money. There are support ships being constructed in Devon and Belfast helping local employment and the serious deterrent nuclear submarines being built in Barrow in Furness. Keep the investment up, the new government of the UK,