Lockheed Martin Australia has released an independent report into the company’s impact on building resilience in Australian sovereign capability.
Lockheed Martin’s Economic Impact in Australia (the Report), produced by advisory firm AlphaBeta, now part of Accenture, shows that with a workforce of over 1,100, Lockheed Martin Australia delivers substantial economic benefits to Australia.
The report’s analysis of the economic contributions to the nation updates and extends economic impact data published in 2018. The findings of the AlphaBeta report demonstrates the critical role of large defence primes to grow and further a vital, vibrant and sustainable sovereign defence industrial capability and a highly-skilled, high value Australian workforce – supporting Australia’s economy and future prosperity.
One of the catalysts for evolving Australia’s robust and resilient defence industry capability has been the F-35 Joint Strike Fighter program. The F-35 Program is an exemplar for growing Australian sovereign industrial capability, which in 2019 alone saw Lockheed Martin spend $409M in the F-35 global supply chain for production and sustainment. As the Australian F-35 fleet continues to arrive and sustainment ramps up, analysis suggests that this figure will also continue to grow.
Highlights from the Report include:
- In 2019, Lockheed Martin contributed $542M to Australian Gross Domestic Product (GDP), an increase of 60% since 2016.
- Lockheed Martin Australia’s supply chain spending has doubled to $697M since 2017 supporting over 675 local suppliers, of which 70% are small- and medium-sized enterprises.
- Lockheed Martin’s economic impact is significant as every $1 of output generated by generates an additional $1.70 of indirect and induced impact to the economy.
- In 2019, Lockheed Martin supported over 6,300 Australian jobs, an increase of 53% since 2016. These jobs included direct employees and workers employed by suppliers engaged to deliver Lockheed Martin products and programs in Australia.
- Lockheed Martin Australia has grown its workforce by 28% between 2017-2020, with 1,164 employees across every mainland state and territory delivering a wide breadth of capabilities from air superiority, sustainment to space and research and development.
- Lockheed Martin Australia is creating opportunities for high-skilled, entry level roles and offers seven early career pathways in Australia, including apprenticeships, internships, trainee programs, and the award-winning Graduate Development program. Collectively, these programs employ 133 Early Career employees, or over 10 per cent of LMA’s workforce.
Commenting on the report, Lockheed Martin Australia chief executive Joe North reiterated Lockheed Martin Australia’s long-standing commitment to enhancing Australia’s economic prosperity and national security as the trusted steward for sovereign defence capability.
“I am extremely proud of our employees and our partners across the industry, research and academia communities working with us to develop, integrate and sustain Lockheed Martin products and platforms,” he said. “The significant increase in Lockheed Martin Australia’s contribution to the Australian economy over the last three years is a credit to their commitment and focus.”
“Throughout the pandemic, Lockheed Martin Australia has continued to grow its Australian workforce, adapting to ensure that defence supply chains have not been disrupted and supporting SMEs by accelerating payment times.
“While the Report highlights Lockheed Martin’s economic contribution to Australia’s economy , we understand our nation , like the rest of the world, faces significant economic challenges in the wake of COVID-19. As Australia looks to defence as a sector key to realising a national economic recovery post-COVID, Lockheed Martin Australia is already working with its local partners to help deliver an industry-led recovery and a stronger, sustainable economic outlook for Australia.”
Managing Director at AlphaBeta, Dr Andrew Charlton, highlighted the importance of Lockheed Martin Australia’s economic activity in building resilience in Australia’s economy, particularly through the COVID-19 pandemic.
“Our analysis shows that Lockheed Martin Australia’s operations have generated significant support for Australian industry and workers, including sovereign capability development, high-value job creation and workforce skilling, as well as investment in research and development,” he said.
“This investment is coming at a critical time for the economy as it rebounds from the shock of the COVID19 crisis.”