Consulting Report
02 Jul 2025

Demonstrating Babcock’s Value to Australia’s Economy and National Resilience

Oxford Economics Australia provided Babcock with a comprehensive, independent analysis quantifying its total GDP, employment, tax, and socio-economic contributions across Defence and Civil sectors, SME engagement, and state-specific impact modelling.

Background: Understanding the True Scope of Babcock’s Economic and Social Impact

Babcock operates across a diverse portfolio defence sustainment, civil aviation, engineering, and emergency services and has long been a trusted partner in Australia’s national infrastructure and security. Beyond its operational importance, Babcock contributes significantly to the economy through its own operations and across its supply chain. This includes its significant role in local procurement, workforce development, and investment in social initiatives that extend beyond its core defence contracts.

The Challenge: Capturing the Full Scale and Diversity of Babcock’s Contributions

Babcock’s national operations span both Defence and Civil activities, with a significant concentration in South Australia and Western Australia. Its presence across multiple sectors and regions makes it challenging to capture the full extent of its economic and social footprint, particularly as activity in one state often drives supply chains, employment, and spending in others. To address this, we conducted analysis at both the state and activity level, supported by a sophisticated modelling approach designed to reflect the scale and complexity of Babcock’s operations. This included estimating flow-on impacts such as employee spending, alongside a broader assessment of SME engagement and social contributions.

Solution: Independent Economic Impact Study Unveils $758M in GDP and 4,392 Jobs Supported by Babcock in FY24

A robust economic impact study delivered by Oxford Economics Australia quantified Babcock’s national and state-level contributions to GDP ($758 million), employment (4,392 FTE jobs), and tax revenues ($250 million). The study disaggregated impacts across both Defence and Civil operations using a proven GVA-based model. It:

  • Assessed direct, indirect, and induced contributions across key industry sectors
  • Demonstrated that Babcock’s workforce productivity exceeded the national average by 16%
  • Highlighted the value of SME engagement, with $92 million spent across 667 small and medium enterprises
  • Showcased social investments, including support for First Nations communities, STEM education, and veteran initiatives

The results helped Babcock articulate its value proposition in alignment with Australia’s sovereign defence priorities, community goals, and economic resilience.

This report was brought to you by the economic impact team.
Quantifying the economic, social, and environmental impact of government policies, new investments, technological innovations, industries, and companies at a global, national, or local level.
The experts behind the research
  • Angus Colovic

    Angus Colovic

    Senior Economist, OE Australia
    Angus Colovic

    Senior Economist, OE Australia

    Angus is a Senior Economist in Oxford Economics Australia’s Consulting team, where he leads economic impact assessments, cost-benefit analyses, and input-output modelling to inform major investment and policy decisions. With a background in applied microeconomics and advanced quantitative methods, he advises government and private sector clients on complex, data-driven questions. He previously held consulting roles at PwC and KPMG.

  • Michael Brennan

    Michael Brennan

    Director - Economic Impact
    Michael Brennan

    Director - Economic Impact

    Michael Brennan is a Director at Oxford Economics, based in Australia, specialising in applied microeconomics, including cost-benefit analysis, program evaluation, business cases and economic impact assessment. He has extensive experience advising government and corporate clients across transport, energy, technology, defence and infrastructure sectors.

    Before joining Oxford Economics, Michael held leadership roles at Accenture Strategy, AlphaBeta and Deloitte Access Economics, where he led major projects on the energy transition, digital transformation, infrastructure investment and workforce planning. His work has influenced public policy, government investment decisions and regulation across some of Australia’s most critical industries.

    Michael holds a Bachelor of Economics (First Class Honours) and Bachelor of Commerce from the University of Western Australia.

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