Report Released: Economic Impacts of Defence Infrastructure in the Northern Territory
Northern Territory’s booming defence industry will contribute billions of dollars to the Territory’s economy and create thousands of new jobs for Territorians in the next four years, new independent economic analysis reveals.
Today the Northern Territory Government has supported Master Builders NT in their release of the Economic Impact of Defence Infrastructure Projects in the Northern Territory report.
The Northern Territory (NT) plays a crucial role as an alliance hub to support and enable Australian and allied military forces. As the Defence Strategic Review makes clear, the Territory’s role in supporting defence in the region will grow substantially in the coming years.
Master Builders NT commissioned economic advisory firm, ACIL Allen, to analyse the impacts of defence infrastructure investment in the NT. The research has found that this industry can create an additional 7,600 local jobs in the Territory between now and 2027.
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 $800 million 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.
Defence projects which will soon start to roll out, and compliment the work which is occurring at the Larrakeyah Defence Precinct, RAAF Base Darwin and Crowley US Fuel storage.
This report proves the NT will have capacity to deliver the Defence work expected as well as projects in adjacent sectors.
Over the last number of years an $8 billion decade-long defence infrastructure program has presented great demands on the local building and construction sector.
Industry Capability Network NT has recently estimated that 69 per cent 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.
To view the report, go to the Master Builders Northern Territory website.