UK security sector outpacing overall economy
The Security Industry Outlook report offers an in-depth look at the sector’s employment, investment, export and growth trends, incorporating data provided by the Centre for Economics and Business research and a comprehensive survey of security industry leaders. It shows that the UK sector grew by a fifth in 2013 and has grown five times faster than the rest of the UK economy since 2010. Industry leaders expect this significant rate to continue in the year ahead with two thirds (66%) saying they will achieve more than 10% growth over the next 12 months.
The ADS report shows that the sector has an annual turnover of £7.9bn, 40% of which is generated through exports. The industry comprises 11,500 companies, 90% of which are SMEs reflecting the diverse and specialist nature of the products and services it designs and creates to tackle threats to individuals and communities in the world today.
Paul Everitt, chief executive of defence trade organisation, ADS Group commented: “The UK security industry touches almost every aspect of our day-to-day lives, from cyber systems protecting our online banking details; to counter terrorism; to our proven expertise in effective major event security through the successful 2012 Olympic Games, and much more besides. This vibrant sector has carved a global reputation and the pace of growth revealed in this report demonstrates it is already taking advantage of new demand.
“The diverse nature of the UK industry presents both an opportunity and a challenge so it is important that companies operating in the sector have the right support and information to target new markets and secure the scale of sales necessary to reach their potential. Government is working in tandem with industry to achieve this, and we look forward to discovering more about the progress of the developing Security and Growth Partnership in the near future.”
Driving growth through exports
Seven in ten UK security companies are planning to increase investment in the next 12 months, recognising the significant growth that the sector is seeing around the world. It is expected that the global security market will grow by 50% by 2017, with the cyber security sub sector driving this growth and doubling in size in the same period. The UK Government’s Security Export Strategy will play a critical role in ensuring the UK continues to see international sales accelerate.
The report shows that companies are boosting exports by investing in sales, business development, research, design and engineering. They are focusing on building new trade links with emerging markets such as Latin America, Africa and the Middle East, where there are a number of high value opportunities including new rail infrastructure and some significant upcoming large scale events.
Creating and supporting high-value jobs
The UK security sector directly employs 75,000 people, of which 2,150 are apprentices or trainees. On average, employees working in the sector earn around 40% more than the UK average, highlighting the highly skilled nature of its workers. The industry also supports 39,000 jobs indirectly through the supply chain.
One in five (18%) security sector employees work in design and engineering jobs, vital for developing new products and technology to stay ahead of competitors around the world. However, while industry leaders are confident in their ability to access the sales and business development skills they require for their export drive, 19% are concerned about accessing important design and engineering skills for the future. To address this, more than half (52%) of all UK security companies employ apprentices and trainees, which will create a pipeline of the right talent for the long term.
Recognising the importance of a forward thinking approach to securing future opportunities, Government, Industry and Academia are joining forces through the Security and Reliance Growth Partnership (SRGP) to shape a strategic plan to ensure UK industry can maintain its world leading capability. An update on the progress of the SRGP is expected in early December.
