A report published by Oxford Economics details BAE Systems’ economic footprint in Scotland, underscoring its impact on employment, procurement spending, and community development.
As per the report, BAE Systems directly and indirectly supports nearly 15,000 jobs and spends over £500 million in procurement across Scotland.
At the heart of BAE Systems’ operations in Scotland are two significant shipyards located on the River Clyde in Govan and Scotstoun. These shipyards, home to more than 3,200 employees, are currently engaged in the construction of Type 26 frigates for the Royal Navy. In a major show of faith in Scottish industry, BAE Systems has invested over £100 million in the Govan site for a new combined drydock and assembly hall.
Charles Woodburn, BAE Systems Chief Executive, said:
“As one of the UK’s largest employers, we recognise our responsibility to help deliver economic prosperity as well as national security. Our continued investment in skills, technology and the communities where we live and work supports thousands of jobs and is creating opportunities for people to play an important role in helping to keep our country and our allies safe.”
Beyond its contributions to the shipbuilding sector, BAE Systems is driving community development with a project at Bishopton, near Glasgow. Here, eight square kilometres of the former Royal Ordnance Factory are being converted into a new village, aiming to provide 4,000 new homes by 2034. This site also employs 30 workers at the company’s principal facility for munitions testing and evaluation.
In 2022 alone, 13% of BAE Systems’ domestic procurement was sourced from Scottish companies, translating into an expenditure exceeding £500 million. This significant procurement spending directly supports the jobs of 7,200 workers, while the wages of these workers and the 3,900 BAE Systems employees in Scotland also indirectly support an additional 3,800 jobs. All told, BAE Systems’ operations underpin the employment of almost 15,000 workers in Scotland.
Just shows how important making stuff in the U.K. is for the economy. While it can be cheaper to get a product abroad that doesn’t generate the 3x jobs in this country or keep the money spent in the local economy.
The U.K. should do what other countries like Italy does with the business dept helping fund programs that are beneficial to the economy
We need some strategic wisdom & joined up thinking rather than the short sighted monetarist carpetbagger philosophy that has stripped assets & destroyed communities & industries across the uk over the last 40+ years for a quick buck, mostly banked offshore.
Can you outline your proposed philosophy & indentify the countries it has successfully been implemented in
When the shit hits the fan – and everywhere else right now if you’re a utility, the leveraged ‘investors’ desert like rats, and leave the ratepayer from whom they’ve made their riches to become the taxpayer who scoops up the mess. What’s not to like?
I agree but it’s also important not to be in the position that France is in where the tail wags the dog. Look at the state of the French Airforce primarily due to the cost of solo development of Rafale and subsidising it’s sale to foreign customers just to keep Dassault going. With F35 the Belgium Airforce will soon be far more capable than Frances.
I think our multi national programs do work especially now we have gotten rid of the Germans, hopefully the Japanese won’t present similar problems.
The UK gets a massive work share from F35 relative to our financial contribution.
I think it’s important we continue to develop our own kit especially for things that are simpler and can have lots of export potential. Fighter jets, warships and combat vehicles but we should continue to buy off the shelf for more bespoke platforms like AEW or MPA. We should not be overly involved in multi national programs except for aircraft.
It’s not big and sexy but component manufacturing is something the UK excels in, it’s much more profitable than end system production and it gives the UK massive power. Even the USA cant sell F16 to Argentina due to British export ban on ejection seats.
States the obvious. I for one value & respect the huge Scottish contribution to the UK as an ordinary Englishman. The UK is greater than the sum of its parts. We all need Westminster to do a far better job.
Apart from subs & some of the QE carrier modules, all RN major warships are built in Scotland. The order books are very impressive into the 2040s.
I get the impression that if anything the order books are too full. Perhaps some of it needs to be shifted to other yards.
There are two type’s of warship being built at two yards in Scotland. Shifting any of that makes no sense. The order books are not full enough because at some point T31 and T32 production will end with no replacement and it’s likely to be much the same at BAE after T83 finishes. This is because the escorts have a 30 year design life and the carriers 50. So we won’t be able to continuously build at two yards given the size of the RN.
H&W is being rebooted for large RFA vessels and hopefully that continues. If anything C&L should probably start doing submarine work as Barrow is full.
The one thing you can guarantee in life is nothing goes to plan. The current ships are too expensive & too few in number. The yards are currently full so now is an excellent time to look at building elsewhere whilst nobody can acuse anybody of neglecting the current yards..
With you, Frank
Bravo a glimmer of light in a sea of shite just now. BAE might be part of the military industrial complex but they sure as shit build some great vessels that the RN will hugely benefit from 👍🏻👏🏻
Made in Scotland From Girders 👊🏼🏴
🏴🇬🇧
A Scottish economy that’s worth around £200 billion per annum and BAE accounts for £500 million. I’m not sure I would call that significant. Sourcing 13% of all products from Scotland also seems very average given that Scotland manufacturing output is higher in general that the UK average.
It’s nice that BAE has sold off land that use to be the old royal ordinance factory for housing (thanks your BAE from the bottom of our hearts) but I’m sure we and the people of Ukraine would much rather we still and a Royal ordnance factory.
I’m guessing BAE paid for this report.
With 8% of the population, Scotland gets 13% of the work, how is that “average”?
Not every item will be actually made in Scotland. When it comes to items that BAE gets from screw fix for example. Yes it’s bought in the Glasgow screw fix but where did they get it from.
Due also to the location being in Scotland that should make numbers higher. Using local delivery firms, canteen products, Scottish company filling the vending machines etc etc.
Without a proper breakdown of every item included in the 13% and where it came from and where they got it from it can be a lot of guess work.
The company gets computers for the office from a Scottish company. The CPU comes from Taiwan, the case is made in Vietnam with steel from China who bought the raw materials from Australia. The graphic card came from the USA with bits from 7 other nations inside and so on.
Main thing is value of items, repeat orders and so on.
Ah, but apart from:-
BAE Systems directly and indirectly supports nearly 15,000 jobs and spends over £500 million in procurement across Scotland. At the heart of BAE Systems’ operations in Scotland are two significant shipyards located on the River Clyde in Govan and Scotstoun. These shipyards, home to more than 3,200 employees, are currently engaged in the construction of Type 26 frigates for the Royal Navy. In a major show of faith in Scottish industry, BAE Systems has invested over £100 million in the Govan site for a new combined drydock and assembly hall…….
What have the Sassanaks ever done for us? Don’t mention the Nucs!! the noo……
Well, there is Babcock at Rosyth and Type 31, the PoW…..
Ah, but apart from…….
Mm, er, there is RAF Lossiemouth, you know QRA, MRA..bit going on there…..
Ah, but apart from…….
Will you kindlay shoot the F..U..