New economic projections released by PwC today show that if the Australian Government’s expectation of at least 60% South Australian industry content for the $90 billion naval shipbuilding programme is met, it would boost South Australia’s Gross State Product (GSP) by an extra $134.4 billion over the life of the construction programme.
This is equivalent to a 3.4 per cent increase in South Australia’s total economic activity each year.
PwC estimates the programme will deliver an extra 8000 local jobs, comprised of 3500 direct shipbuilding jobs and an additional 4550 jobs in industries directly related to shipbuilding.
PwC Economics & Policy Partner Jeremy Thorpe said that the economic benefits of naval shipbuilding for South Australia are substantial and will have important flow on effects for the community.
“South Australia will be entrenched as Australia’s key naval construction centre and the shipbuilding programme alone will triple the South Australian workforce and boost GSP by upwards of $134.4 billion over 40 years,” Mr Thorpe said.
“An uplift of this size is the equivalent of adding a total new mining industry to the South Australian economy year-on-year over the life of the programme.
“It is rare that a state sees such a long term commitment that can be banked on. This avoids the traditional problems of a boom and bust cycle,” Mr Thorpe concluded.
PwC’s Adelaide Managing Partner Kim Cheater added that South Australia has a strong history as the national centre of naval shipbuilding and sustainment.
“We have developed a world class maritime industry base and highly skilled workforce as well as investing in critical infrastructure such as Techport which will underpin these future opportunities.
“It’s an incredibly exciting time for our state and it is vital that industry, government and our education sector work together to fully realise the potential. PwC is focused on working with industry in South Australia to build the capability and capacity to make the most of this once in a lifetime opportunity.” Mr Cheater said.
Download the full PwC report.
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