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Andrew Chapman from BAE Systems Australia explains how the Commonwealth government’s recent decision to extend the company’s Hawk Lead-In Fighter project would support the growth of the defence industry across regional Australia.
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For regional Australia, the focus of economic recovery in the wake of COVID must be quality jobs because jobs are the foundation of local economies.
So it was heartening to see the federal government extend the in-service contract of the Air Force’s Hawk Lead-In Fighter, to 2031, in the current locations of RAAF Williamtown in the Hunter Valley, and Pearce in Western Australia.
The two-seater Hawk Mk 127 is pivotal to the RAAF deploying quality aircrews, having been introduced in 2001 to train pilots for combat aircraft such as the F-35, Super Hornet and Growler.
The $1.5 billion contract to service the 33 Hawks over the next decade covers maintenance, engineering and supply chain services as well as progressive upgrades of mission systems.
The upgrades will be led by BAE Systems Australian engineers and supported by BAE Systems UK Hawk aircraft specialists.
The contract extension is great news for employees and contractors at BAE Systems’ Williamtown site, who take pride in the quality of their work and the contribution they make to the security of this country.
The government’s investment in engineering, technical and maintenance skills is important to ensure that our RAAF aircraft are safe and effective but the economic benefit of the defence industry to regional areas is profound.
The 2020 report from BIS Oxford Economics, The Economic Contribution of the Hawk and F-35 Support Programs, reveals the true picture of what defence contracts can mean to regional economies.
BIS Oxford forecasts the Hawk program in 2022-23 will directly generate $83 million in GDP, with a total national GDP contribution of $152 million.
It will also support a direct workforce of 350 (mostly at Williamtown) in 2022-23 and indirectly more than 870 workers nationally. It is supported by a supply chain of 168 Australian businesses, 86 of which are SMEs – 20 of them in the Hunter region.
The Hawk announcement adds to our F-35 maintenance and sustainment program, also at Williamtown. The RAAF will eventually operate a fleet of 71 of the fifth generation F-35s, supported by BAE Systems Australia.
By 2025, the F-35 program at Williamtown is expected to contribute around 360 direct jobs and 750 in total across the national economy. The F-35 will contribute $70 million in national GDP in 2025, rising to $120 million once its full economic footprint across Australia is taken into account, supporting 750 jobs nationally.
Together, the Hawk and F-35 programs will contribute nearly 600 jobs to the Hunter region and NSW, by mid-decade. Importantly, both programs rely on skills development and education, and BAE Systems has forged links with education institutions and business organisations in the Hunter region, aimed at creating a pathway for skilled jobs.
By 2025, BAE Systems at Williamtown will be one of the region’s most significant employers and certainly one of the biggest employers of highly-skilled people.
As we emerge from COVID-19 we must remember that defence industry programs are not just employment opportunities, but also significant regional upskilling programs. Defence industry requires global best practice, but it supports local jobs.
Andrew Chapman is the director, aircraft sustainment and training at BAE Systems Australia.
