12 May 2008 | Ref. 153/2008
Glasgow, United Kingdom – A study by Fraser of Allander Institute has unveiled that the contribution of BAE Systems’ Surface Fleet Solutions business to the Scottish economy increased by £139 million to £392 million in 2007 when compared to its contribution in 2006.
The study, commissioned by BAE Systems, also reveals that in 2007, for every 100 people employed by the Company on the Clyde, a further 68 jobs are supported in other industries in Scotland, bringing the total number of jobs supported by the Clyde yards to 5,364.
Key findings:
• The 3,194 jobs provided by BAE Systems at Govan and Scotstoun support an additional 2,170 jobs in other industries in Scotland. BAE Systems therefore supports a total of 5,364 jobs across Scotland as a whole.
• The contribution to Scottish Gross Domestic Product or Gross Value Added (GVA) created by the Govan and Scotstoun operations stands at £107 million.
• The GVA of £107 million supports an additional £58.6 million worth of output in other industries in Scotland.
• The company supports £132.2 million worth of wages across Scotland.
• For every £100 paid directly in wages to BAE Systems’ employees; £53 worth of wage income are supported elsewhere in Scotland.
Commenting on the study’s findings, managing director of BAE Systems Surface Fleet Solutions Vic Emery said; “This research shows that the industry continues to thrive in Scotland and the thousands of people who benefit from the existence of shipbuilding on the Clyde continues to grow year on year.
“The level of growth we have seen in 2007 is substantial and I am delighted that our business has had such an extensive, positive impact on the country’s economy.
“While the effect on the Scottish economy is hugely significant, the pride and social impact of the Clyde yards cannot be underestimated.”
About BAE Systems:
BAE Systems is the premier global defence and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With 97,500 employees worldwide, BAE Systems' sales exceeded £15.7 billion (US $31.4 billion) in 2007.
About the Fraser of Allander Institute
The Fraser of Allander Institute is a research unit of the University of Strathclyde in Glasgow. The Institute carries out research on regional issues generally and the Scottish economy in particular, including forecasting and the analysis of short-term and medium-term movements in Scottish economic activity.
For further information please contact:
Catherine Thurogood, BAE Systems
Tel: +44 (0) 141 957 4464 Mob: +44 (0) 7801 717860
catherine.thurogood@baesystems.com
Lindsay Walls, BAE Systems
Tel: +44 (0)1252 383074 Mob: +44 (0) 7793 427582
lindsay.walls@baesystems.com
Issued by
BAE Systems, Farnborough, Hampshire GU14 6YU, UK
Tel: +44 (0) 1252 384719 Fax: +44 (0) 1252 383947
24hr media hotline: + 44 (0) 7801 717739
www.baesystems.com
