20 June 2013 ukti.gov.uk
British defence exports rose by 62% in 2012 – the largest increase for five years.
New figures published today by UK Trade & Investment’s Defence and Security Organisation (UKTI DSO) show that UK defence exports totalled £8.8 billion over the past year, a rise of 62% from 2011 in a global market that grew by 45%.
These results mean the UK maintains its position as the second most successful defence exporter after the United States. As in 2011, the UK continues to benefit from a strong defence supply chain, which contributed to the success in 2012.
Orders contributing to the strong results included Typhoon and Hawk aircraft. The Typhoon programme alone supports an estimated 8,600 jobs in the UK, across companies including BAE Systems, Rolls-Royce and Selex-Galileo and their supply chains – with an estimated further 1,500 jobs dependent on export opportunities.
The UK continues to capture 20% of the global defence export market. Maintaining this level and growing security exports to 5% by 2015 are the key targets for UKTI DSO. Last year’s expansion in the defence sector was supported by UK export growth of 4% to £2.7 billion in the security sector, in a global market that grew by 3%.
Combined defence and security exports rose to £11.5 billion in 2012, up from £8 billion in 2011.
Business Minister Michael Fallon said:
“Defence exports are helping to safeguard much needed high quality jobs in UK industry at a difficult time for the economy and these robust figures demonstrate Britain's ability to successfully compete in the global race. The UK government has pledged its support to the defence industry which has an outstanding record of export success. We have a proven ability to help UK exporters to win business overseas and achieve their international business potential.
“These export results reflect the importance of the high technology sector and its contribution to advanced manufacturing trade. The UK’s defence industrial base is rich in innovation, largely thanks to the vital contribution of smaller firms.
“The increase in the security sector reinforces a consistent picture of year on year growth in a highly competitive market. Growth is particularly strong in the cyber security sector which is critical to the UK’s national security.”
Philip Dunne, Minister for Defence, Equipment Support and Technology said:
“This is welcome news for the UK Defence Industry, and demonstrates that they remain world leaders in an increasingly competitive global market place. The Ministry of Defence has continued to play a key supporting role in the promotion of defence equipment and services, recognising that defence exports make a significant contribution to the government’s growth agenda. These results also demonstrate the high regard in which our Armed Forces, and the equipment they use, are held by our allies and partner nations overseas.”
James Brokenshire, Home Office Minister said:
“Last year the UK delivered a safe and secure Olympic Games showcasing our security expertise to the world. I am delighted that UK security exports have showed continued growth for the fifth successive year. This critical industry supports thousands of jobs across the country and we are determined to build on this excellent performance, working with the industry to maximise our reputation and identify new opportunities for growth.”
Notes to editors:
1. Case studies highlighting UK companies that have been successful at winning defence and security export business over the last year can be found here: http://www.ukti.gov.uk/defencesecurity/defence/casestudy.html
2. The government's economic policy objective is to achieve 'strong, sustainable and balanced growth that is more evenly shared across the country and between industries.' It set four ambitions in the ‘Plan for Growth’ (PDF 1.7MB), published at Budget 2011:
to create the most competitive tax system in the G20
to make the UK the best place in Europe to start, finance and grow a business
to encourage investment and exports as a route to a more balanced economy
to create a more educated workforce that is the most flexible in Europe.
Work is underway across government to achieve these ambitions, including progress on more than 250 measures as part of the Growth Review. Developing an Industrial Strategy gives new impetus to this work by providing businesses, investors and the public with more clarity about the long-term direction in which the government wants the economy to travel.
3. UK Trade & Investment (UKTI) is the government department that helps UK-based companies succeed in the global economy. We also help overseas companies bring their high quality investment to the UK’s economy – acknowledged as Europe’s best place from which to succeed in global business. UKTI offers expertise and contacts through its extensive network of specialists in the UK, and in British embassies and other diplomatic offices around the world. We provide companies with the tools they require to be competitive on the world stage. For more information on UKTI, visit www.ukti.gov.uk or visit the online newsroom at www.ukti.gov.uk/media.