£22BN ANNUAL VALUE OF DEFENCE SECTOR TO UK ECONOMY

Defence worth £22.1bn in 2010, employed 110,000 with £9.5bn in exports says Ian Godden, Chairman of the defence industry trade group ADS:

"The Government seeks to support the UK's Armed Forces, invest in high-technology and long-term, high-value jobs in the UK while rebalancing the economy towards manufacturing and exports. It is clear that the UK defence industry is delivering for the nation on all counts.

"As the world heads to London for DSEi to see what is on offer from our diverse and technologically-advanced sector we are proud of our vital contribution to the UK economy and our national security. From large multinationals to small and medium sized enterprises – where the UK has more than France, Germany, Italy, Spain and Norway combined – our country can be proud of the innovative technology for which our defence engineers are rightly renowned worldwide. We also look forward to meeting a number of UK ministers at DSEi so that we can demonstrate to them what we can deliver for the nation with their support within the strict, effective and industry-supported rules that govern defence exports."

A survey  carried out by ADS found:


• Defence employs around 110,000 people directly, generating over £22bn in sales in 2010 with the sector supporting a total of 314,000 jobs while being responsible for £35bn in total economic contributions according to Oxford Economics research.

• Domestic sales were worth 57 per cent of the £22.1bn total (£12.6bn). Export sales totalled £9.5bn with aerospace making up 75 per cent (or £7.1bn), land 17 per cent (or £1.6bn) and naval 8 per cent (or £760m). Sales to the US totalled £2.3bn, to the EU £2.5bn and to the rest of the world £4.6bn.

• Orders in 2010 were for £18.6bn, £12.6bn domestic orders and £6bn export orders increasing the UK's share of the global defence export market to 22 per cent in 2010.

• The defence industry maintenance & service market was worth £4.4bn in 2010, which is equivalent to 20 per cent of total defence sector turnover.

• Export trends over the last 10 years confirm that the US remains well ahead of other countries, but with the UK confirmed in the second place. Saudi Arabia and India, two of the UK's key export markets, are the largest defence importers globally.

• Total R&D investment in the defence industry came in at £1.66bn in 2010, of which £1.07bn was in defence aerospace.

• In 2010, 59 per cent of the defence industry employees held a university degree or equivalent, apprentices and trainees account for 2 per cent or 2,690 of the workforce and technicians accounted for 16 per cent of the workforce.