A new document issued yesterday by the U.K. government identifies the defense sector’s core strengths and sets out how government and industry will work together to maximize the nation’s competitive advantage to boost British jobs, trade and growth.
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| #10 Downing Street |
Backed by Prime Minister David Cameron, Securing Prosperity – a strategic vision for the UK Defence Sector, was developed by the Defense Growth Partnership (DGP), a forum set up by the PM in 2012 in which the government, the U.K.’s top defense companies, the sector trade association and SMEs are working together for growth.
Cameron said: “Britain’s defense industry is a national success story that we are right to take pride in. Across the country, British engineers, scientists, apprentices and manufacturers are working to ensure that our armed forces have the best equipment in the world. But as well as making an essential contribution to our national security, the industry is vital to economic growth too–with well over 100,000 people employed and a turnover of ($34.5) billion a year.”
The DGP challenges the government and industry to deliver a long-term strategic vision to maintain the United Kingdom’s position “on the leader board” in maximizing opportunities for British business and strengthening the economy, he added.
Key U.K. strengths that the DGP is expected to maximize include: air capabilities–which have yielded 82 percent of U.K. defense export success over the last decade and which have significant potential for growth; and intelligent systems–development of the electronics, software and systems integration that are at the heart of many military capabilities.
The vision also calls for increasing international business by doing such things as developing more coordinated U.K. solutions, tailored to the needs of customers around the world. In technology and enterprise, the statement calls for establishing more effective ways of creating and exploiting the intellectual property of the future, such as autonomous systems.
As well, developing the next generation of apprentices, technicians, engineers and other professionals is important.
Value chain competitiveness, improving the competitiveness of the U.K.’s defense value chain, providing differentiation in terms of capability, cost and market access, is also important, the government said. As well as supplying world class equipment, services and support to the armed forces and others around the world, the defense industry is a key sector of the U.K. economy. It is a vital driver of opportunity and employment all over the country, which industry estimates supports well over 100,000 highly skilled jobs in companies large and small throughout the supply chain.
In a statement from 10 Downing Street, the government said it is committed to creating the conditions that industry needs to continue to generate the innovation, well-paid jobs and high value exports that are critical to long-term, balanced economic growth.
The DGP met Sept. 9 to launch its strategic vision at a breakfast event at the Department for Business, Innovation & Skills (BIS). The DGP is jointly chaired by MBDA U.K. managing director Steve Wadey and Business Minister Michael Fallon. They were joined at the launch by major U.K defense firms, defense trade organization ADS group, and Minister for Defense
Wadey said: “The work of the Defense Growth Partnership to date has brought the importance of the sector to the fore, highlighting the U.K.’s core areas of strength which offer the greatest opportunity for growth, both at home and overseas. The defense industry welcomes the opportunity to work in partnership with government, enabling us to develop technologies, skills and capabilities that meet the needs of customers today and for the long-term, ultimately driving growth in the U.K. economy.”
Fallon said: “The U.K. is a market leader on the world stage, with defense exports alone generating ($13.8) billion in 2012. But customers’ needs are changing in an uncertain world; competition is fiercer and technology is evolving rapidly. This long-term partnership between government and industry will maximize new opportunities for exports and inward investment, support new skills and generate new jobs in companies of all sizes.”
The Defense Growth Partnership currently involves: Babcock, BAE Systems, Cobham, EADS, Finmeccanica, General Dynamics [GD], Hewlett-Packard [HP], Lockheed Martin [LMT], Marshall, MBDA, Qinetiq, Raytheon [RTN], Rolls-Royce, Serco, Thales, Trade Association ADS, The Department for Business, Innovation and Skills and The Ministry of Defense.