Manufacturing a Strong Defence.
In an industry that requires an advanced and often quick response as crisis occurs, the UK has maintained a competitive global position in its ability to manufacture robust and innovative solutions. Find out how in our overview of the UK’s defence production line.
DEFENCE’S SUCCESS
DEFENCE IN NUMBERS
Ambition
The UK defence industry is not only a major employer but also generates important technology innovation. With a global reputation, defence continues to make a valued and strong contribution to British manufacturing and the economy.
Representing the UK, BAE Systems is the third largest defence company in the world and the biggest defence contractor in Europe. Head-quartered in London, BAE is on the frontline of major projects in the industry - including the Eurofighter Typhoon consortium and the Lightning II F-35 programme, a fleet of single-engine multi-role fighters currently undergoing final developments. BAE employs an estimated 93,500 people globally and boasts total sales upwards of around £20 million. Innovation Ruaridh Macdonald a student at Massachusetts Institute of Technology, from West London, has been praised for his innovation in defence recently. Working as part of the project Zero Knowledge Warhead Verification, Macdonald has developed a tool that can identify nuclear weapons without divulging sensitive details about the weapon’s design information. The new tool tackles the problems of retaining anonymity with a beam of light, a scrambler and a detector.
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2nd
Behind the US, the UK is the second biggest defence exporter globally.
10%
Defence accounts for 10% of manufacturing in the UK
£22.1 billion
The UK Defence sector generates £22.1 billion per year for the national economy.
9,000
There are an estimated 9,000 British companies and small business operating within the defence sector.
70%
Domestic orders account for 70% of the UK’s defence industry revenue.
300,000
The defence sector has created 300,000 opportunities in the UK.
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DEFENCE TRENDS Despite the pressure on defence spending and an uncertain future strategy, the UK’s defence industry has remained a resilient and successful sector to British manufacturing. This success is due to its ability to react to issues and implications on the wider industry. As militarised budgets shrink worldwide, responding to the current economy, the UK’s defence industry has likewise seen its spending receive less support from GDP, government and labour. In recent times defence manufacturing has experienced growing demand to cater for cyber attacks and security in wealthier countries, where the threat of terrorism and conflict is low. With countries who already have a mature military focus decreasing budgets, two thirds of UK defence manufacturers are looking to emerging markets for new opportunities and sales growth. In particular businesses are targeting the Middle East, Asia and South America, where defence budgets are increasing. These emerging markets are, however, developing their economies at a rapid rate and are keen to improve their defence. This in turn presents its own challenge in recruiting qualified and expert engineers to operate and maintain sophisticated military equipment. British manufacturers need the Government to take an active role in pursuing the opportunities overseas, for it to win these contracts over international competitors. This will include building relationships to support export activity.