ADS report highlights UK security sector's value and potential
ADS today released its inaugural survey of Member companies operating in the security sector. The report complements the long running ADS aerospace survey and the recently produced ADS defence survey. It is the first step in presenting the performance of the security sector as represented by ADS.
As the first ADS survey of its kind it highlights the value and potential for this emerging sector, providing a snapshot of its Members operations in this sector and greater depth to the understanding of broader security market figures. This survey is designed to be the foundation set of figures for the hi-tech and service-oriented ends of the sector from which more comprehensive studies can be built to reflect the performance of the Security industry in its totality. This in turn will give wider understanding to ADS Members, stakeholders and other interested observers of the variety and importance of the Security market both in the UK and internationally.
Derek Marshall (above), Managing Director – Policy, ADS, said: “Security is a Cinderella sector of UK manufacturing, and it is high time she had her time at the ball. With Government and opposition seeking to support and rebalance the economy towards high end manufacturing and high value jobs with strong export potential then they should look to Security, which provides all this and helps to ensure that national security objectives are met.
“We have strong domestic demand but there is still room for improvement in making the national security market work more efficiently. The Government’s forthcoming White Paper on Technology, Equipment and Support for UK Defence and Security should accept industry’s recommendation that a senior official should be appointed to deliver greater coherence in the UK’s security market, and this will help to deliver the greater coordination that is needed to make UK security industry offerings more attractive to overseas buyers.
“The domestic market is a starting point from which the Security industry can build on its strong export success in the US and now we must look to the emerging markets and opportunities of other markets like Asia and South America. The Government has made it clear that this is where British industry should look to in these troubled times and the Security industry is keen to work hand in hand with Government to bring this about. This survey shows that Government and industry have a superb opportunity to work together even more closely on promoting UK security systems and services capabilities around the world.”
The ADS Member Security Survey found:
- Security employs around 51,000 people directly in the hi-tech and service-oriented end of the sector.
- Domestic security sales were worth £1.8bn (81%) of the total £2.23bn. Export sales totalled £430m, with Asia, North America andEuropeaccounting for £154.4m, £115.3m and £73.3m respectively.
- Sales of security equipment and products totalled £222.97m (12%) of ADS member sales in theUK.
- Cyber security sales in the UK accounted for £248.7m (14 per cent) The UK domestic market was the largest purchaser (69 per cent of the total) followed by North America (29%). Total cyber security sales including exports in 2010 were £361m.
- 91% (£105m) of sales to the US were for cyber security. The order intake for Security in the North American market reached £250m in 2010.
- R&D intensity (the measurement of investment in R&D in relation to sales) was 2.2 % in 2010, which compares well against the UK’s 1,000 leading companies at which R&D intensity stood at 1.7% in 2010. Total self funded R&D investment from ADS security members in 2010 came to £50m.