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Defence industry worth $8.9 billion in 2020/21, up 5.7 per cent on previous year

Manufacturing News

The defence industry was worth $8.9 billion to the Australian economy in the 2020/21 financial year, an increase of 5.7 per cent versus the previous year and representing 0.46 per cent of the nation’s gross value added, according to new figures from the Australian Bureau of Statistics.

The figures are from the ABS’s Australian Defence Industry Account, experimental estimates update on Friday, which totals goods and services invoiced to the Department of Defence.

It is the first official estimates released by the ABS on the defence industry’s contribution. According to the ABS the statistics “provide a reliable baseline to help government target policies relating [to] the Australian defence industry.”

NSW was the largest contributor by state or territory, at 30 per cent.

Purchases categorised as Professional, Scientific, and Technical Services led by sector, contributing 41.4 per cent, or $3.7 billion, of the total.

Manufacturing was the next biggest, at 18 per cent of GVA.

“Spending in the defence industry is often closely linked to manufacturing projects,” explained the ABS’s Luisa Ryan, Director of Environment and Satellite Accounts, in a statement 

“While manufacturing captures the actual production, Professional, Scientific, and Technical Services includes the engineering, computer system design and technical expertise that goes into the planning and delivery of these projects.”

(All of which are arguably part of delivering any sophisticated manufactured product.)

More on the report is available here.

The bureau said a second release will be published December 16, including a longer time series next time around, as well as additional classification breakdowns and estimates of employment associated with Defence expenditure.

Picture: credit

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