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Defence industry adds £9.8bn to UK economy

The Defence Sector Outlook published today by trade body ADS, reveals that in 2022 the UK’s defence sector added £9.8 billion in value add to the UK economy, while turnover from defence organisations reached £22.8 billion.

Image courtesy ADS

Ahead of DSEI, the Defence Sector Outlook from ADS Group highlights the £7.4 billion 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.

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.

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“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.”

Policy development must be targeted at business opportunities to secure sector's success
Following the refresh of several Government strategies including the Integrated Review Refresh and the Defence Command Paper, the publication highlights numerous policy priorities and business opportunities for businesses in the sector.

Aimie Stone, Chief Economist at ADS Group said: “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.”

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 £37.4k per person.

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