In an announcement that bodes well for the Northern Territory’s future, the Government, in association with Master Builders NT, has unveiled a report that confirms the defence sector’s burgeoning role in the Territory’s economic landscape. Authored by economic advisory firm ACIL Allen, the Economic Impact of Defence Infrastructure Projects in the Northern Territory report reveals that thousands of jobs and billions of dollars are on the horizon for the local economy.
The study forecasts that defence infrastructure projects will generate a substantial 7,600 new local jobs by 2027. These aren’t just any jobs; they’re roles that will fortify the Territory’s position as a strategic asset for Australian and allied military forces. Given the recent Defence Strategic Review, the Territory is slated to become an increasingly important hub for defence activities in the upcoming years.
Financially speaking, the numbers are just as compelling. The defence sector is poised to inject up to $6.2bn into the Territory’s economy from 2023 to 2027. When broken down annually, this means an additional $800m will be pumped into the existing construction activities in the Top End. More than 4,300 of the new jobs will be directly within the construction sector, while another 3,300 will ripple across various sectors in the economy. If the Territory maintains a high level of local involvement, nearly 5% could be added to its Gross State Product by 2025/26.
This news comes as a welcome relief for a region that has seen an $8bn, decade-long defence infrastructure programme exert great demands on its construction sector. According to Industry Capability Network NT, local companies have received 69% of defence contracts over the past seven years, amounting to nearly $800m circulating through the Territory’s economy.
To further maximise local participation, the Northern Territory Government has pledged to collaborate closely with Defence, Master Builders, and the broader industry. The focus will be on winning more projects, addressing critical worker shortages, and expanding housing options to accommodate the anticipated influx of new residents.
Chief Minister and Minister for Defence Natasha Fyles emphasised the progress already made in establishing the Territory’s credibility in delivering significant defence projects. Fyles noted that local businesses, which once received less than a third of defence contracts, now secure over two-thirds. The Chief Minister also expressed enthusiasm about the upcoming jobs boom, declaring, “It means more people coming here, more people staying here, more people building their future here.”
Master Builders NT CEO, Ben Carter, hailed the projected $6.23bn investment as “a hugely positive story for Territorians,” and urged local businesses to prepare for the massive opportunities this financial outpouring will bring.
In a world where economic uncertainty often reigns supreme, this report provides a sturdy foundation of hope for the Northern Territory. A mutual partnership between the Australian and US Defence Departments, along with the local construction sector, aims to initiate a tidal wave of job opportunities and economic benefits that will cascade across the Territory.
In short, the defence sector is not just contributing to the Territory’s economy; it’s setting it ablaze, creating a beacon of financial and occupational promise that is sure to draw more Australians to consider the North as not just a place to visit, but a place to live, work, and prosper.
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The Northern Territory expects significant economic growth through defence infrastructure projects, with 7,600 jobs & $6.2bn in investments projected by 2027. #TheIndianSunhttps://t.co/ql0CVSJWAT
— The Indian Sun (@The_Indian_Sun) October 9, 2023
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