A Eurofighter Typhoon fighter jet flies at the ILA Berlin Air Show in June. The fighter jet by BAE System was a major earner for the U.K. defense industry, which generated more than $35 billion in revenues in 2010. (Sean Gallup / Getty Images)
11 Sep 2011 By ANDREW CHUTER DefenseNews
LONDON - Defense generated more than 22 billion pounds ($35 billion) in 2010 revenues for U.K. industry, 43 percent of which came from export sales, according to a new survey published Sept. 12 by the ADS trade organization.
The survey, the first time ADS has looked at the defense sector in its entirety, comes as gloom deepens over the prospects for many of the sector's companies.
Ministry of Defence efforts to balance its books threaten to trigger a new round of program and contract cuts in the weeks and months ahead.
In addition, an upcoming defense industrial policy white paper, currently planned for publication in mid-October, is likely to throw open the door further to the procurement of more foreign-made off-the-shelf weapons.
ADS released the study the day before the DSEi trade show gets underway here.
"The government seeks to support the armed forces, invest in high technology and high-value jobs in the U.K. while rebalancing the economy towards manufacturing and exports," said ADS Chairman Ian Godden. "It is clear the defense industry is delivering for the nation on all counts."
Manufacturing accounted for 80 percent of revenues, with maintenance and support the rest.
Export revenues were predominately from aerospace sales, making up 7.1 billion pounds, or 75 percent of the total. The major earners were BAE Systems' Typhoon fighter jets and Hawk trainer jets, and AgustaWestland's EH101 helicopters.
Land systems sales trailed at 17 percent.
Domestic sales, 12.6 billion pounds, were more evenly split. Aerospace accounted for 40 percent; land, 33 percent; and naval the rest.
The U.K. defense industry employs 110,000 people directly and 314,000 indirectly, ADS said.