Defence

The defence industry is involved in the manufacturing of military equipment. It also includes the associated research and development. The defence sector encompasses the naval, land and aerospace domains. It builds parts, components and systems for aircraft and vehicles. It also produces weapons, ammunition, missiles, and electronics. Cyber security is an important segment of the industry.

Defence plays a key role in the UK economy. It employs over 140,000 people. Exports average over £14 billion. It is a vital sector for national security.

The British Ministry of Defence is the most important customer for defence suppliers. The government spends £20 billion per year on the sector. Single-source contracting is common. This is where a single supplier provides a good or service, because of its unique features. Non-competitive contracting has strategic benefits. It leads to security of supply and greater specialisation.

The defence industry keeps generating innovation and skills within the workforce. It is a high-value sector with qualified employees.

Defence companies continuously invest in skills development for their employees. They also provide apprenticeships to attract graduates into the industry. Defence employs about 4,000 apprentices.