New independent economic analysis has revealed that the Northern Territory’s thriving defence industry is poised to significantly contribute to the region’s economy, generating over 7,600 local job opportunities in the next four years.
In particular, the government has partnered with Master Builders NT to release the “Economic Impact of Defence Infrastructure Projects in the Northern Territory” report.
To assess the impact of defence infrastructure investments in the NT, Master Builders NT commissioned the services of ACIL Allen, an economic advisory firm.
The analysis also found that the defence sector is expected to invest up to $6.2 billion in the NT between 2023 and 2027, adding an average of $800 million annually to the existing construction activity levels in the Top End.
Specifically, this investment is projected to create an additional 7,600 jobs, with 4,300 directly in construction and another 3,300 across various sectors.
It could also potentially contribute nearly five per cent to the Gross State Product in 2025/26, contingent on the Territory’s ability to sustain high levels of local involvement.
The NT construction sector has a track record of scaling up as required, and this additional investment aligns with the industry’s long-term average activity levels.
In addition to the ongoing work at the Larrakeyah Defence Precinct, RAAF Base Darwin, and Crowley US Fuel storage, new defence projects are set to commence shortly.
The report confirms that the NT has the capacity to fulfil the expected Defence work and adjacent sector projects.
Over the past years, the NT has witnessed an $8 billion decade-long defence infrastructure program, placing significant demands on the local building and construction sector.
Industry Capability Network NT has reported that 69 per cent of defence contracts over the last seven years have been awarded to local companies.
Consequently, nearly $800 million, out of a total expenditure of $1.15 billion, has circulated through the NT economy.
Chief Minister and Minister for Defence Natasha Fyles emphasised the significant progress made in demonstrating the Northern Territory’s industrial capabilities to undertake crucial defence projects.
“Over this last seven years we have seen $8 billion defence infrastructure economy enter our construction market,” Fyles said.
The minister added, “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.”
Meanwhile, Master Builders NT CEO, Ben Carter, highlighted the positive impact of the $6.23 billion investment by the Australian Defence Force (ADF) and the US military on the Territory.
“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,” Carter noted.
To ensure the continuation of project work by Territory businesses and maximise opportunities for local residents, the Northern Territory Government will maintain close collaboration with Defence, Master Builders, and Industry.
The focus will be on securing more projects, addressing critical worker shortages, and expanding housing options, the government said.
