Page 225 - Minutes of meeting

Maximising the Economic & Social Impact of BAE Systems

Between 2017 to the early 2030s, the Dreadnought Submarine
programme will benefit from an injection of £4.2bn GVA. Barrow
needs to capitalise on this opportunity by offering an appropriate
range of shops, services, homes, workspaces and amenities to
attract and retain workers and spend.

The ‘contribution of BAE Systems to the UK economy’ report
identified that BAE Systems’ operations in Barrow spent £40m on
procuring a total of 91 suppliers in 2018.

For BAE Systems expenditure as a whole (£3.7bn), the largest
category of procurement spending included payments made to
major subcontractors for large components for capital projects such
as building Royal Navy vessels (including submarines). The sectors
with the largest indirect GVA impacts are manufacturing and
professional services.

The wages paid to BAE Systems’ employees, contractors and
employees in the UK supply chain provide a further stimulus
through consumer spending. The largest effect is in the real estate
sector, followed by the retail sector. BAE are planning to recruit 900
staff over the course of 2020 including 50 graduates, 350
apprentices and around 500 experienced workers for higher-level
roles.

Wider benefits included investment in R&D (£90m spent in 2018), capital spending (£244m in 2018) including the £25m ASK in
Barrow, refurbishment of the main manufacturing facility including a new 28,000 sqm logistics facility and a new central yard
complex with two new major buildings; and generation of export value.

BAE are developing a major masterplan to support the operation of their site. This has the potential to improve the character of
Barrow’s waterfront through the development of a new campus incorporating office and learning provision.

Copyright © Hatch 2018. All Rights Reserved. Source: Oxford Economics, The contribution of BAE Systems to the UK Economy, September 2019; FHSF bid, Annex 10 – Summary of Wider Investment in the Town