On December 14th, the Spanish Association of Defence, Security, Aeronautics and Space Technology Companies (TEDAE) presented a report, in collaboration with KPMG, on the economic and social impact of these industries on the Spanish economy.
TEDAE, Founding Trustee of the FEINDEF Foundation, aims to inform official bodies about the good practices of the 85 companies that make it up. The report, with a strong data analysis, reflects the importance of this sector in the Spanish economy and society, focusing on four key areas such as economic impact, employment generation, investment in R+D+i and fiscal impact.
The turnover of the Defence, Security, Aeronautics and Space Industry reached 14,101 million euros in 2019, making it one of the industrial sectors with the highest growth. Such levels of turnover account for almost 1.7% of the national GDP, making this industry one of the country’s driving forces.
Companies that are part of TEDAE are directly or indirectly liable for a total of 211,921 jobs in Spain. The direct employment they provide is of a quality that exceeds the national average by 83% and is notably higher than that of other branches of industry.
Innovation is a cornerstone for maintaining competitiveness in an eminently export-oriented sector. With an estimated activity of 1,120 million euros, the Defense, Security, Aeronautics and Space Industry was, in 2019, one of the main drivers of research and development in the country.
Despite being a clear export sector and therefore with a reduced impact on VAT, the jobs generated represent a significant collection of income tax. The results of the companies that make up TEDAE also pay taxes to the treasury through corporate income tax. Due to these factors, the collection of the sector in 2019 was close to 1.2% of the national collection.
From all this can be concluded that we are dealing with a solvent industry with a future that contributes significantly to the development of the country.