Report shows impact of BAE Systems in Lancashire

By Rob Kelly

02 Jul 2025

BAE Systems Radar

A new report show the impact of BAE Systems is making across Lancashire.

Research by Oxford Economics has revealed the powerful impact of the ‘defence dividend’ across the county. 

Beyond the 13,700 people directly employed by BAE Systems across Lancashire, the report shows that the UK’s leading defence company spent an estimated £190m with 210 local suppliers in 2024 and supported a further 2,400 jobs.

Nationwide, the company contributed £13.7 billion to national GDP in the same year, accounting for one in every £200 of the country’s economic output.  

The ‘BAE Systems Contribution’ report comes soon after the UK’s Strategic Defence Review was announced at BAE Systems in Glasgow, where the Prime Minister outlined a plan to create: “A defence dividend – that will be felt in the pockets of working people and the prosperity of the country, securing growth for generations to come.”

Simon Barnes, group managing director, Air, said: “As the UK’s sovereign combat air provider, we play a critical role in creating and sustaining world class defence capability, helping the Royal Air Force protect the nation, and supporting our international allies.

"I’m exceptionally proud to lead an organisation that creates so many opportunities for the region, and the people who live and work here. Beyond our defence capabilities, our business drives significant growth across the North West, sustaining thousands of highly-skilled jobs and contributing to the prosperity of the region.

"Together with our partners large and small, we build resilient, lifelong careers, drive industrial capability, fuel innovation and strengthen local communities, all of which creates a lasting positive impact on our nation for decades to come.”

Through its Industrial Strategy, the UK Government has made it clear that defence is central to both national security and economic growth, aspiring to harness innovation and industrial power to make defence a new engine for growth.

This encompasses a broad range of positive economic outcomes, including jobs, exports and lasting productivity gains, and today’s report outlines some of the ways BAE Systems is already delivering by:

  • supporting over 159,000 full-time equivalent jobs, including almost 50,000 in its UK business;
  • driving economic activity through a UK-wide supply chain, with 5,800 UK suppliers and £5.8 billion spent, supporting jobs across the country; and
  • creating opportunities where they are needed most, with over 40% of its UK workforce living in the most deprived fifth of local authority areas, and £1.3 billion spent with businesses in those areas.

The report also outlines how BAE Systems is intensifying its commitment to skills development.

In 2024, the company invested £230m in education and training, including more than £150m for 4,650 apprentices and almost £50 million for graduate training.

This significant investment directly supports the UK Government’s vision to create new jobs, create skills and opportunity and drive huge growth in industrial capacity.

View the full report here www.baesystems.com/ukcontribution

Enjoyed this? Read more from Rob Kelly

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