The Impact of BAE Systems’ Air Sector Business on the UK economy
Commissioned by the BAE Systems
This report quantifies the contribution that the BAE Systems Air Sector business made to the UK economy in 2023.
BAE Systems’ Air Sector business is a significant contributor to both the UK economy and to the nation’s combat air programmes, designing, building and maintaining the current and next-generation aircraft and air combat systems for the Royal Air Force and customers all around the world.
In 2023, we estimate that the Air Sector business sustained almost 70,700 jobs in the UK—equivalent to one in every 520 jobs in the country. We also estimate that the business’ operations supported a £5 billion contribution to UK GDP in 2023.
BAE Systems’ Air Sector business workers are concentrated in highly skilled roles. Some 69% of Air Sector staff are employed in engineering or engineering-related operations roles. BAE Systems has training programmes in place to maintain a supply of the necessary skills, with more than 900 apprentices and 320 graduates in training in its Air Sector in 2023.
The Air Sector business also made wider contributions to the UK economy through exports, selling £2.6 billion of goods and services to overseas customers in 2023. This was up from £2.3 billion in 2018 (in constant 2023 prices).
The experts behind the research
Our Economic Consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:
Jordan Mencattelli
Economist, Economic Footprint & Sustainability
Stephen Foreman
Associate Director, Economic Footprint & Sustainability
Tags:
You might be interested in
Air transport decarbonisation not ready for take-off
Air transport is, for good reason, considered one of the hardest to decarbonise sectors of the economy. While there have been substantial gains in energy efficiency in past decades, these have been overwhelmed by large increases in demand, leading to large absolute increases in energy used and carbon emissions.
Find Out More
The impact of Airbus on the UK economy
Airbus supported a £5.6 billion contribution to UK GDP, supported 86,400 jobs across the country, and raised more than £1.4 billion in tax revenues in 2020, according to research by Oxford Economics.
Find Out More
Global Outlook of Airport Capital Expenditure: Meeting Sustainable Development Goals and Future Air Travel Demand
An examination of historic shifts and changes in passenger demand and airport CAPEX to calculate airport infrastructure needed to support short-, medium-, and long-run growth of air passengers to 2040.
Find Out More
The impact of the BAE Systems military aircraft business on the UK economy
In 2016, the BAE Systems military aircraft business sustained nearly 48,900 jobs in the UK, supported a £3.2 billion contribution to GDP and made a total tax contribution of £900 million to the Exchequer. Following the 2017 study on the contribution of BAE Systems to the UK economy, the company asked Oxford Economics to estimate the economic impact of one of its UK businesses. The report finds that in 2016 BAE Systems military aircraft business sustained nearly 48,900 jobs in the UK, supported a £3.2 billion contribution to GDP and a made total tax contribution of £900 million to the Exchequer. In addition, in 2016, the BAE Systems military aircraft business exported £1.3 billion worth of goods and services—equivalent to 0.2 percent of UK exports in that year.
Find Out More