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

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.