BAE Systems’ growth in UK town Barrow-in-Furness could inspire Adelaide’s hospitality scene under AUKUS deal

The answer to SA’s hospitality woes and abandoned shopfronts could be found in an unlikely place. Just ask this British cafe owner.

South Australia’s shuttered hospitality businesses could find an unlikely source for optimism in a growing industry crisis – Barrow-in-Furness, a tiny seaside town 350km northwest of London.

The birthplace of Thomas the Tank Engine, Barrow may seem an unassuming blueprint for economic growth in SA.

But, as our state seeks to leverage the $368bn AUKUS nuclear submarine coup as a once-in-a-generation chance to invigorate Adelaide as a destination city, the town shows just how big the opportunity is.

In just 40 years, Barrow has transformed into a major global shipbuilding force, with 12,000 people now working at BAE Systems’ shipyard – more than one fifth of the town’s 55,000 residents.

About 900 new homes will need to be constructed each year to keep up with its surging population, as BAE seeks to employ an additional 5000 workers to meet AUKUS demands.

But shipbuilding isn’t the only industry buoyed by the deal’s massive growth.

The submarine shipyard at Barrow-in-Furness, England.

In 2023, Barrow local and former BAE employee Ashley Holroyd decided to leave the company to pursue a new dream, purchasing a coffee van with his Italian brother-in-law and slinging hot brews at the local market.

As the town’s population expanded, so too did his clientele – and, in 2024, Mr Holroyd opened his first bricks-and-mortar store, Coffee D’Ash, next to BAE Systems’ headquarters.

The bustling cafe now pumps out caffeine day-in-day out and is only going from strength to strength, with the venue also hosting community and social events.

“Seeing the numbers that come through in the shipbuilding industry and the increase and population that comes with it, you see the increase in demand,” Mr Holroyd said.

“These shops were all closed two or three years ago and now they’re all coming back to life … other businesses are coming in because they see the opportunity.

“Having that increased population means there are new people coming into the town to give it some life, and those people want to have a fun and social experience.”

Cafe owner Ashley Holroyd, who runs Coffee D'Ash in Barrow-in-Furness. Picture: Emily Olle

Mr Holroyd believed the AUKUS deal would provide a huge opportunity for growth in the hospitality sector for businesses existing and emerging, both in Barrow and Adelaide.

“It really does massively boost the revenue of any town you’re in,” Mr Holroyd said.

“Those workers need food and drink and they’ll come into the town to find it.

“You want to do your research and be diligent, but I’d say the opportunity is there. It was for me.”

It’s hard not to draw parallels between Mr Holroy’s hospitality success story and the streets of Port Adelaide, just 6km from BAE Systems’ Osborne Naval Shipyard in SA.

Ryan Jones, Chairman of the Port Adelaide Traders Association, has operated digital marketing company Refuel Creative from St Vincent St for the past six years.

He says the hospitality and cost-of-living crises have taken a brutal toll on the western suburbs hub, with a number of beloved venues – including Miss Viet Kitchen in December last year – forced to close their doors.

While some traders have found solid footing, many of Port Adelaide’s shopfronts remain empty or abandoned.

“It’s pretty tough everywhere, really, and Port Adelaide is no different,” Mr Jones said.

“People come down, come to one venue and then – because they have to walk past some abandoned shops – they leave.”

Port Adelaide Traders Association chairman Ryan Jones. Picture: Supplied

The AUKUS project, at the existing Osborne site, is expected to create up to 4000 jobs at the peak of construction.

Mr Jones said BAE’s impact on Port Adelaide’s trading opportunities was already apparent.

“If you’ve ever been to Pirate Life on a Friday afternoon at knock-off time, it’s subcorp hi-vis as far as the eye can see,” Mr Jones said.

“We’re working on getting ASC to a traders meeting this year to have a chat about the opportunities we might be able to work with them on.”

He believed successes like Mr Holroyd’s showed how AUKUS could transform Port Adelaide into a hospitality and business destination – but investment was needed to capitalise on the opportunity.

“They are coming in at the moment but we can’t take that for granted … you see other places on the Peninsula that are investing – that whole area has to start lifting to engage with these people so they don’t just go home straight after work,” Mr Jones said.

“If existing venues go from struggling to thriving, then we’re only going to see more business move into the area.

“If we get struggling venues on their feet and make sure that we’ve got really good, viable destinations for everybody at every time of the day, that’ll only activate those abandoned buildings and help us with the whole vibe of the area.”

Premier Peter Malinauskas and UK Defence Procurement Minister Alex Chalk at the Barrow-in-Furness nuclear submarine shipyard operated by BAE Systems. Picture: supplied

The parallels between Adelaide and Barrow are many. Our university merger hopes to draw young, talented professionals to Adelaide. University of Cumbria has just opened a Barrow-in-Furness campus, with the same dream.

Phil Drane is the program director at Team Barrow, a partnership between local council, BAE Systems and the UK government that aims to best tackle the challenges faced in drawing – and retaining – skilled workers to the town.

Mr Drane said one of Team Barrow’s focuses was ensuring the town’s future doesn’t hinge just on highly paid employment opportunities.

“One of the things we have to think about when it comes to places like Barrow or Adelaide that are going through growth opportunities is that the word ‘opportunity’ needs to be properly communicated,” he said.

“It’s not just about the work – we need to ensure there are things to do within the town centre, better life prospects and things to enjoy.”

Barrow-in-Furness Deputy Mayor Fred Chatfield, a former shipyard worker whose passion for the town’s proud history is palpable, said the opportunities created outside of shipyard work had been invaluable for retaining young people.

“It’s just gone up-and-up and pulled so many other industries up with it,” he said.

“Hospitality is definitely on the rise, we’ve got four new hotels that are always busy with another one being built up.

“People are now realising that if you come to Barrow, there is business here. There’s a bright future for both cities – a really bright future.”

Originally published as BAE Systems’ growth in UK town Barrow-in-Furness could inspire Adelaide’s hospitality scene under AUKUS deal