According to an independent report by Oxford Economics, BAE Systems productivity has increased by almost 35% over the past three years and its investment in skills and technology has increased year on year leading to labour productivity rates of £128,000 per employee almost 80% greater than the national average.
The productivity output reflects the company’s highly skilled workforce, its long term commitment to delivering advanced apprentice and graduate training programmes and its investment in technology which underpins and drives future concepts in product design and manufacturing.
Key findings of the analysis in ‘The Contribution of BAE Systems to the UK Economy’ report for 2016 include:
BAE Systems' operations contribute £11.1 billion to the UK economy, equivalent to 0.6 of GDP, comprising direct, supply chain and workforce spending contributions
The company is a growing force in export markets with earnings from sales abroad totalling £4.7 billion, equivalent to 0.9% of UK exports
BAE Systems spend £4 billion on goods and services with some 8,900 suppliers across the UK, representing 79% of its total procurement
It supports nearly 130,400 full time equivalent (FTE) jobs in the UK. Almost two thirds of BAE Systems’ staff are employed in engineering or engineering related roles, with more than 1,600 apprentices and just under 500 graduates in training as of November 2017
BAE Systems is one of the most productive companies in the UK, with labour productivity of £128,000 per employee, almost 80% above the national average
The company invests £1 billion in UK research and development (R&D), including investment from the UK Ministry of Defence.
Innovation and R&D are a key focus for the company, as it partners with leading universities to develop future technologies, with £10.7 million invested with UK universities in areas such as novel materials, advanced manufacturing, artificial intelligence, maritime technologies, air vehicles and avionics testing.
The company has made strategic investments in a range of evolving technologies including Reaction Engines Ltd and its hypersonic engine, as well as mixed reality cockpit technology, unmanned ground vehicles and rigid inflatable boats and flapless flight technology.
With some 50 sites across the UK, including major centres of expertise in military design and manufacturing in Scotland, the North West and South of England and almost 9,000 suppliers nationwide, BAE Systems makse a significant contribution to regional economies across the UK.
BAE Systems Chairman, Sir Roger Carr, said: “BAE Systems plays a critical role in ensuring the security and prosperity of the UK and we prioritise investment in skills, capital and technology to support our continued growth in productivity and exports. We recognise our responsibility to support wider industry and the positive role we can play in addressing the UK’s productivity challenge. We are proud to work with the thousands of UK companies across our supply chain on some of the world’s most complex engineering programmes and together we create skilled jobs, develop new technologies and play our part in driving prosperity in regions across the UK.”
ADS Chief Executive, Paul Everitt, said: “Productivity is a national challenge but this report shows that companies like BAE Systems who invest in skills and technology are making great strides forward. The UK defence sector has seen productivity rise by 23% since 2010 compared to 3% in the economy as a whole and BAE Systems is playing a key role in that vital success story.
“With almost 9,000 companies in its supply chain right across the UK, the beneficial economic impact of BAE Systems’ success both at home and overseas is felt on a truly national scale.”
To download the Oxford Economics' report 'The Impact of BAE Systems on the UK Economy' published November 2017, click