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On DSEI-eve (8 September), not a creature was stirring except for the House (of Commons) with the long-awaited publication of the Defence Industrial Strategy 2025: Making Defence an Engine for Growth. The paper arrives nine months after the Strategy’s Statement of Intent and is built on feedback from industry.
If you think of the Strategic Defence Review as HM Government’s vision for defence, the Defence Industrial Strategy is the framework to make it happen and how. A big part of the solution is skills and the future workforce, both focal investment areas. Further key areas include simplifying procurement and increase spend on new technologies.
A month later on 2 October, WEAF hosted the event “Seizing the Opportunity: UK Defence Pathways 2025-35” in Yeovil, Somerset, at the iAero Centre which discussed the strategy with key industry leaders from ADS, Boeing, Leonardo, the UK MOD, TKMS Atlas UK Ltd, alongside attendees from not only the WEAF membership but the entire supply chain across the South West.
WEAF says
Colin Turner, CEO of WEAF, commented: “The UK MoD’s Defence Industrial Strategy is reshaping opportunities for SMEs. With a targeted SME spend of £7.5 billion starting from FY 2027/28, simplified procurement, and new support hubs; smaller firms may find it easier to access contracts and scale innovation in areas like AI, autonomy, and clean tech.
“This means more potential growth, regionally focussed jobs, and faster routes from R&I to deployment. However, challenges remain on understanding MOD capability requirements and matching these with SME capacity, risk-sharing, and navigating prime contractors. The direction is clear: the MOD wants SMEs to be a central driver in supporting the UK’s defence and security future.”
Key Defence Deliverables
Here’s a summary of the key areas which will support industry to deliver on defence:
- Introduction of a five-year acquisition pipeline, which will deliver a more predictable and quicker delivery to the frontline. For the region’s supply chain, particularly SMEs, this increased visibility will allow for better long-term planning and investment in new technologies, and recruitment.
- The £10 billion frigate deal with Norway, while this is a national deal, the strategy’s emphasis on a supply chain of over 430 businesses across the UK is critical, the announcement noted. The South West, with its naval expertise, is likely to be uniquely placed to help support a significant portion of this through the industrial ecosystem.
- £250 million into five Defence Growth Deals were announced. The South West is highlighted as a “good example” model of collaboration between businesses and local authorities.
Hopefully this means the region will benefit from being a model student and receive some of this funding. The Strategy stated “We will work with businesses, devolved governments and local authorities to ensure that every region’s potential is realised, building on good examples of similar partnerships in the South West and North East.”
- There are plans for a dedicated Defence Office for Small Business Growth with a 50% SME spending target raise.
- Lastly, a commitment of more than £4 billion in autonomous systems was made. Joined by an additional £1 billion in directed energy weapons, alongside a ring-fenced 10% of the procurement budget for novel technologies in general.
South West is Best
The Strategy’s explicit reference of the region as a prime example of what good looks like was further emphasised throughout the paper. This was also signalled during networking at the WEAF event and on the panel discussion that focussed on pathways for UK SMEs considering the Strategy.
It acknowledged that the South West is a major hub for leading space and aerospace companies, with world-renowned universities and organisations driving cross-sectoral innovation.
Within the paper, cyber was specifically earmarked in the Golden Valley development, in Gloucestershire, as a key area for growth, reinforcing the region’s role as a leader in emerging technologies.
The Defence Nuclear Enterprise was also marked as a significant economic driver, and the Strategy confirmed it will “continue to generate significant benefits… by expanding investment and jobs in key locations, particularly the North-West and South-West of England…” This will help support the future of naval and submarine maintenance hubs like Devonport.
The Global Combat Air Programme was linked to major combat air hubs in the South West and north west of England. This again demonstrates that the region is more than a supplier but a core partner in one of the UK’s most critical defence programmes.
How soon is now?
So, nine months after feedback was sent, what does the Strategy tell us? It’s a great plan, with a much-needed £182 million uplift for the defence talent line which is great for future skills. But the question remains, what about now? All those working tirelessly to get capabilities ready for contracts today are waiting in the wings for funding to transpire and procurement decisions to be made.
Procurement delays cause restlessness, fatigue, and despondency. Talent and skills also need to be retained in middle management; industry is seeing waves of leavers to commercial tech and AI sectors.
Therefore, the Strategy must move beyond future-facing announcements and address today’s conflicts and readiness. The true test of this strategy for the South West will be how quickly the promises of a streamlined pipeline, SME support, and investment in novel technologies translate into real contracts and sustained jobs. The current talent stream needs to be reassured that their hard work in developing deployable capabilities is valued not just in the long-term, but in the here and now.
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