Wednesday, July 24, 2024

Master Builders analysis reveals NT’s lucrative defence future

New independent economic analysis released publicly today has revealed the Northern Territory’s defence industry will contribute billions of dollars to the economy and create thousands of new jobs for Territorians in the next four years.

Master Builders NT commissioned economic advisory firm, ACIL Allen, to analyse the impacts of defence infrastructure investment in the Territory.

Chief Minister and Minister for Defence, Natasha Fyles said the Territory Government supported Master Builders NT in their release of the Economic Impact of Defence Infrastructure Projects in the Northern Territory report, which found that the industry has the potential to create an additional 7,600 local jobs between now and 2027.

NT Chief Minister, Natasha Fyles with the report released today.

“There has been a lot of progress in recent years to prove and promote the capacity of NT industry to deliver critical defence projects. Our local businesses are now trusted to take on these big projects and deliver them. As a result, Territory companies once received less than a third of local Defence work, now they receive more than two thirds. That all adds up to more economic activity here and more jobs here,” said Chief Minister Fyles.

“The Territory’s defence industry isn’t just growing, it’s booming, and that benefits all of us. This is why we advocate in places like the US for more defence contracts.

“Over this last seven years we have seen $8 billion defence infrastructure economy enter our construction market. Local participation across these defence infrastructure programs has increased significantly and this is a testament to the work done by Master Builders NT in ensuring Commonwealth procurement processes are adjusted to the northern market.”

The research also reveals:

  • The Defence sector is expected to invest up to $6.2 billion in the NT from 2023 to 2027 – this investment will add, on average, a further $800m per annum to the current levels of construction activity in the Top End;
  • It will also create an additional 7,600 jobs (4,300 directly in construction and another 3,300 across the economy);
  • Importantly, it could add almost 5% to Gross State Product in 2025/26, if the Territory can sustain high levels of local involvement; and
  • The NT construction sector has a proven record of scaling up as needed, and this additional investment fits comfortably within the industry’s long term average activity levels.
T Minister for Infrastructure, Planning and Logistics, Eva Lawler.

NT Minister for Infrastructure, Planning and Logistics, Eva Lawler said Defence played a vital role in the Territory construction sector.

“The release of today’s report tells us how we are going to manage this work for all Territorians,” she said.

“The timing of this report is critical following the release of the Defence Strategic Review in April 2023, which contained a number of recommendations likely to result in additional and continued Defence investment across northern Australia.

“With the development of strategic infrastructure, the Northern Territory is positioned as a key enabler for defence in the Indo-Pacific region. This report shows how this industry will support local jobs and local business.”

Chief Minister Fyles said the report proves the NT will have capacity to deliver the Defence work expected as well as projects in adjacent sectors.

“The Northern Territory has some of the world’s best military training areas and ranges and hosts some of the largest, multi-lateral military exercises in the region on an annual basis. This is all underpinned by the capability and capacity of our construction and services sectors,” she said.

“I’m really excited about the jobs growth we are going to see here in the Territory. It means more people coming here, more people staying here, more people building their future here.

“We’ll keep doing everything we can to create more jobs in the Territory, and we’ll keep working to make the Territory the best place to build a future.”

Master Builders NT Chief Executive Officer, Ben Carter said a $6.23 billion investment by ADF and the US military was a hugely positive story for Territorians.

“The scope and scale of the investment means over 7,500 more jobs and opportunities for businesses not just in the construction supply chain but across the Territory economy which could surge by nearly 5%,” he said.

“The confirmation of the project pipeline provided by the Billion Dollar Partnership report should give Territory businesses the confidence to take the necessary steps to gear up their businesses to take advantage of the huge opportunities it provides.

“This is a multi-billion partnership between the Australian and US Defence Departments and the construction sector. It’s going to create a surge in jobs, opportunities for thousands of businesses and other economy wide benefits that will extend across the whole Top End,” said Mr Carter.

Industry Capability Network NT has recently estimated that 69% of reported contracts in defence over the past seven years have gone to local companies.

Nearly $800 million, out of a total $1.15 billion spend, has been circulating through the NT economy as a result.

To ensure we maintain the level of project work being delivered by Territory businesses, and maximise the opportunities for Territorians, the Northern Territory Government will keep working closely with Defence, Master Builders and Industry on how to win more projects, work to fill critical worker shortages, and create more housing options, said Chief Minister Fyles.

To view the report visit: https://mbnt.com.au/wp-content/uploads/2023/10/Billion-Dollar-Report.pdf.

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