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The Territory’s booming defence industry will contribute billions of dollars to the NT’s economy and create thousands of new jobs for Territorians in the next four years, new independent economic analysis reveals.

Today the 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 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 $6.2bn in the NT from 2023 to 2027 – this investment will add, on average, a further $800m 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; andThe 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 visit:

Quotes attributed to Chief Minister and Minister for Defence Natasha Fyles:

“There has been a lot of progress in recent years to prove and promote the capacity of NT industry to deliver critical defence projects. Our local businesses are now trusted to take on these big projects and deliver them. As a result, Territory companies once received less than a third of local Defence work, now they receive more than two thirds. That all adds up to more economic activity here and more jobs here.

“The Territory’s defence industry isn’t just growing, it’s booming, and that benefits all of us. This is why we advocate in places like the US for more defence contracts.

“Over this last seven years we have seen $8 billion defence infrastructure economy enter our construction market. 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.

“The Northern Territory has some of the world’s best military training areas and ranges and hosts some of the largest, multi-lateral military exercises in the region on an annual basis. This is all underpinned by the capability and capacity of our construction and services sectors.

“I’m really excited about the jobs growth we are going to see here in the Territory. It means more people coming here, more people staying here, more people building their future here.

“We’ll keep doing everything we can to create more jobs in the Territory, and we’ll keep working to make the Territory the best place to build a future.”

Quotes attributed to the Minister for Infrastructure, Planning and Logistics, Eva Lawler:

“Defence plays a vital role in our construction sector. The release of today’s report tells us how we are going to manage this work for all Territorians.

“The timing of this report is critical following the release of the Defence Strategic Review in April 2023, which contained a number of recommendations likely to result in additional and continued Defence investment across northern Australia.

“With the development of strategic infrastructure, the Northern Territory is positioned as a key enabler for defence in the Indo-Pacific region. This report shows how this industry will support local jobs and local business.”

Quotes attributed to Master Builders NT CEO, Ben Carter:

“The $6.23 billion investment by ADF and the US military is a hugely positive story for Territorians. The scope and scale of the investment means over 7,500 more jobs and opportunities for businesses not just in the construction supply chain but across the Territory economy which could surge by nearly 5%.

“The confirmation of the project pipeline provided by the Billion Dollar Partnership report should give Territory businesses the confidence to take the necessary steps to gear up their businesses to take advantage of the huge opportunities it provides.

“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.”

Northern Territory Government