2 minute read - 12th September 2023
Defence industry worth £9.8bn to the UK economy
Ahead of the biennial defence and security trade exhibition DSEI, ADS Group, the trade association for the aerospace, defence, security and space sectors, has released its Defence Sector Outlook.
In 2022, the UK’s defence sector added £9.8bn in value add to the UK economy, while turnover from defence organisations reached £22.8bn. The report also highlights the £7.4bn of products and services exported by the sector, cementing the UK’s position as the largest defence exporter in Europe, and the second largest defence exporter in the world.
The publication further highlights that defence organisations are present in every region of the UK, and the sector delivers high value, skilled and wage jobs with 70% of jobs outside London and the South East and wages being 12% higher than the UK average with an average salary of £37,400 per person.
Kevin Craven, CEO of ADS, said: “The UK’s defence sector is crucial to protecting the freedoms we value in our society, all while providing high-value jobs, unlocking new capabilities and expanding an advanced manufacturing workforce. ADS continues to work closely with our colleagues in the sector, political stakeholders and industry partners to ensure that UK defence remains a key industrial focus for UK innovation and manufacturing and issues of the sector, such as access to finance do not hamper progress.”
Following the refresh of several government strategies including the Integrated Review Refresh and the Defence Command Paper, the ADS report highlights numerous policy priorities and business opportunities for businesses in the sector.
Aimie Stone, chief economist at ADS Group, added: “The defence sector makes a vital contribution to the UK economy which is undoubtedly important across the range of defence applications that the UK leads on, including the protection of land, sea, and air. As we learn lessons from the war on Ukraine, the UK must ensure it deliveries on our national security priorities.”