Oxford Economics has published a new report – The impact of Bae Systems’ Air Sector Business On The UK Economy – showing the key role that BAE Systems’ aerospace sector plays in the UK economy.[1]

BAE Systems is one of the largest defense companies in the world. The company not only operates in the arms and aerospace sectors, but also specializes in cyber security, artificial intelligence and communications systems.[2]

The BAE Systems concern is a shining example of the effective functioning of the domestic armaments and aerospace industry. According to the report, BAE Systems’ aerospace business generated a £5 billion contribution to British GDP in 2023, accounting for 0.2% of the country’s total economic output. Additionally, in terms of exports, the company generated £2.6 billion in revenue in 2023.[3] Simon Barnes, group managing director of BAE Systems Air, said: “The report underscores the importance of investing in national sovereign capabilities in UK-owned combat systems and defense technologies and intellectual property. The benefits to the UK are clear and significant.”[4]

In addition to its huge impact on the UK economy, BAE Systems is supporting local companies, working with 1,400 suppliers and contributing nearly £2.5 billion in 2023 through its supply chain. In addition, they are working on the Future Combat Air System (FCAS) program to develop the Tempest aircraft, a manned aircraft, as well as next-generation unmanned systems and weapons. The project is expected to generate a £37 billion contribution to the UK’s GDP by 2070.[5]

The UK is investing in its domestic aerospace industry in an excellent way. Having a well-developed and prosperous aerospace industry helps ensure national security through the production of modern defense systems, such as the Tempest fighter jet (which is set to replace the Typhoon fighter).[6] This stimulates the economy through large GDP contributions (as in the case of the UK, BAE Systems generated a £5 billion contribution to GDP in 2023) and exports, and supports the development of innovative technologies such as artificial intelligence.

In September 2024, an interesting report entitled “The Polish Aerospace Industry, Potential and Prospects for Development” was released, commissioned by the Association of the Polish Aerospace Industry.[7] The report analyzes in detail the current appearance of the Polish aerospace industry and presents opportunities and threats.

The Polish aerospace industry sector is made up of more than 100 companies, which include global manufacturers, small and medium-sized enterprises and research centers.  The sector employs more than 32,000 workers, and its activities translate into the creation of some 64,000 additional jobs in other sectors of the economy. In 2022, the value of the Polish aviation industry was estimated at PLN 14.5 billion.[8]

– The Polish aviation industry is currently at a turning point. The industry faces many transformational challenges, and maintaining its current development potential requires a broader government strategy that takes into account the needs of the entire economy. This is supported, among other things, by the fact that despite perturbations in the global aviation market, the Polish aviation industry continues to grow at a double-digit rate. However, this trend may be slowed down without systemic support to increase the industry’s competitiveness and strategic decisions to support the sector in the near and distant future, said Polish Association President Paweł Stężycki, Ph.D.[9]

The Polish aerospace industry has the potential to become a major player in the global market. With its advanced technologies and skilled personnel, it can support the country’s economic development and security. However, in order to take full advantage of this potential, Poland should invest in the development of innovation, support exports and provide adequate support to the aerospace sector. The example of BAE Systems shows how strategic investment in the aerospace and defense sector can drive the economy.

Tekst powstał w ramach realizacji zadania publicznego zleconego w ramach Rządowego Programu Rozwoju Organizacji Obywatelskich na lata 2018–2030 r. „Bezpieczna Polska jutra – rozwój działań misyjnych Alioth Foundation”.

Bibliography

[1] Adsadvance.co.uk, „Oxford Economics highlights BAE Systems’ Air business contribution to UK economy” [online].

[2] Geekweek.interia.pl „BAE Systems” [online].

[3] Oxford Economics, „The impact of Bae Systems’ Air Sector Business On The Uk Economy” s.3 [online].

[4] Adsadvance.co.uk, „Oxford Economics highlights BAE Systems’ Air business contribution to UK economy” [online].

[5] Oxford Economics, „The impact of Bae Systems’ Air Sector Business On The Uk Economy” s.10 [online].

[6] Defence24.pl „ Porozumienie w sprawie budowy nowego myśliwca stealth” [online].

[7] Ilot.lukasiewicz.gov.pl, „Polska potrzebuje systemowego wsparcia branży lotniczej” [online].

[8] Ibidem.

[9] Pap.pl „Stowarzyszenie Polskiego Przemysłu Lotniczego: Polska potrzebuje systemowego wsparcia branży lotniczej” [online].