Despite uncertainties over
future defence strategy and pressure on defence spending, the United
Kingdom's Defence Industry has proved to be a remarkably resilient and
successful element of our national manufacturing base.
Despite the rationalisation which is still taking place within the
defence sector it is generally accepted that defence employment still
provides a significant element of the broader UK economy via salaries
paid throughout the supply chain.
Historically, the UK Defence Industry has possessed the capability and
competence to provide a wide range of advanced systems and equipment to
support our own Armed Forces. This capability, matched with their
competitiveness, has enabled UK companies to command a sizeable share of
those overseas markets for which export licence approvals are available.
At home, UK industry has consistently provided some 75% by value of the
equipment requirements of The Ministry of Defence. In simple terms, in
recent years UK industry has supplied £9 - £10 billion worth of goods
and services for our Armed Forces annually while a further £2 - 4
billion worth of business has accrued to the UK defence industry from
sales to approved overseas customers.
The United Kingdom's Defence Companies are justifiably proud of their
record in recent years in the face of fierce overseas competition.
Reductions in the UK's Armed Forces and the heavy demands on our
remaining Service personnel, who face an unpredictable international
security environment, make it inevitable that considerable reliance will
be placed upon the support and surge capacity offered by our
comprehensive indigenous defence industrial base. Without this effective
industrial base, the ability of UK to exert independence of action or
influence over collective security arrangements would be constrained. It
is essential that government policies ensure that industry retains the
necessary capabilities to support our forces in a changing world.
As importantly, the defence industry is not only a major employer but it
is also the generator of high technology that is readily adaptable to
civilian use in fields such as avionics and engine technology. The
future of the UK's defence industry will almost certainly have to be
property planned if it to remain an efficient and essential national
support organisation in times of crisis.
A look at MoD payments to contractors during FY 2007-2008 identifies
some of the larger manufacturers.
MAJOR CONTRACTORS LISTING BY HOLDING COMPANY
Over £500 million
Babcock International Group PLC
BAE Systems PLC
Lockheed Martin Corporation
QinetiQ Group PLC
Hewlett Packard Company
Rolls-Royce Group PLC
£250 - £500 million
Aspire Defence Holdings
BT Group PLC
General Dynamics Corporation
Jacobs Engineering Group Inc
Serco Group PLC
VT Group PLC
£100 - £250 million
3I Group PLC
The Boeing Company
Turner & Co (Glasgow) Ltd
Scottish & Southern Energy PLC
Morgan Crucible Company PLC
Marshall of Cambridge (Holdings) Ltd
Lend Lease Group
Supreme Group Holdings Sarl
Le Grand Annington Ltd
Note: Payments to the companies listed may include payments made to
subsidiaries or contractors.