Economic value of Babcock to SW revealed
DEVONPORT dockyard operator Babcock International has pumped £1.1 billion into the South West economy and supports 19,400 jobs, a report says.
Independent research by Oxford Economics reveals it employs 10,400 people directly and supports a further 8,900 jobs across its supply chain.
The report, focusing on jobs and investment between March 2021 and March 2022, says the defence and engineering firm has paid more than £140 million to suppliers, and £460m to workers, in the region. It has 60 sites in the South West, including Devonport, the largest naval base in western Europe.
There are also 300 graduates and 620 apprentices training with Babcock in the South West. Overall, the company contributed £3.3bn directly and indirectly to UK GDP.
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.”
The report found the £460m paid in wages to employees in the region was mainly to highly skilled engineers and technicians, including the majority of the group’s graduates and apprentices. Babcock supports 56,800 jobs across the UK, with more than 19,400 of these in the South West.
With its South West operations centred around the dockyard in Plymouth, Babcock contributes significant support to the region on top of what it spends directly. For every £100 it spends, the firm’s extended supply chain and people contribute another £93 to the regional economy, supporting an additional 8,900 jobs.
Across the UK, Babcock spends £337m with more than 2,200 SMEs, many of whom are based in the South West. Always looking for operational and collaborative improvements in its supply chain, the company’s nuclear and marine sectors ran a peer network programme for SMEs in the region, offering advice and expertise in areas such as skills, digitalisation, and the environment.
Ben Wallace, Secretary of State for Defence, said: “This report serves as a timely reminder of the contribution the 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 is taking a thorough approach to understanding their wider economic value.”