Paul Everitt, Chief Executive of ADS Group responds to today's defence export figures
Figures published today by UKTI DSO show that at £8.5bn, UK defence exports have dipped for the first time since 2011 but remain higher than the average over the last five years.
The figures come as ADS Group publishes an in-depth report on the value of defence and security exports to the UK economy and national security.
Paul Everitt, CEO of ADS Group states: “The UK has maintained its place as the world’s second largest defence exporter; however fierce global competition coupled with shrinking defence budgets means industry and Government need to work more strategically to retain this valuable market share.
“The report published by today demonstrates the indisputable link between the role of defence exports in sustaining an industrial base which makes a direct and valuable contribution to UK national security.
“While today’s UKTI DSO figures show a decline, ADS has identified a practical framework through which industry and Government can work to ensure the UK continues to benefit from defence exports which make a vital contribution to national security, prosperity and high value jobs.”
Overview of the UKTI DSO figures
Defence
- Defence exports £8.5bn (down from £9.8bn in 2013)
- UK share of the global defence market is 16%. UK retains place as world’s second largest defence exporter
- While defence exports are down from 2013, average exports per annum over the past five years increases from £7.4bn to £7.6bn
- Middle East continues to be largest market, with 66% of exports (by orders/contracts signed) to the region
- UK remains heavily dependent on air sector: 87% of defence exports in 2014 were in air.
Security
- Security exports £3.4bn (up from £3.2bn in 2013), this includes Cyber
- Ranked 6th globally with 4.4% global market share
- Forecast growth of UK security exports predicted to rise from 10.2% in 2014 to 12.8% in 2019. This is higher than the predicted global average (7.8% in 2014 to 9.8% in 2019).