We are proud to represent the UK’s aerospace, defence, security and space sectors – which are an engine of economic growth and a hub of technological breakthroughs and innovation. However, the rapidly evolving technological landscape, the pressing need to meet the UK’s Net Zero commitments and increasing international competition have brought our sectors to a crucial turning point.
This Government’s commitment to deliver a Modern Industrial Strategy is to be welcomed. In an era of increasing global competition, the UK cannot afford to be passive if it wants to achieve economic growth, national security and sustainability simultaneously. To harness the full potential of our nation, the Government must make strategic decisions that capitalise on our foundational strengths while addressing emerging opportunities.
Our sectors are essential to the UK’s prosperity and global influence. The UK’s aerospace, defence, security and space sectors employed over 427,000 individuals and generated £38.2bn in added value to the UK economy in 2023 alone. These strategic national assets act as critical drivers of economic growth with a proven track record of growth that has seen Gross Value Added (GVA) increase by 50% in the last decade, offering high-quality jobs and fostering innovation across the nation.
The Industrial Strategy must provide certainty and stability for businesses, particularly in sectors such as ours that require lengthy investment cycles. Clear, sustained funding commitments to programmes such as the Aerospace Technology Institute (ATI) and predictable tax policies will encourage investment and innovation. As well as supporting early-stage research, the UK should place greater emphasis on the commercialisation and scaling of new technologies to end the age-old UK cycle of good discovery and poor exploitation.
Incorporating these priorities into a long-term, place-sensitive Industrial Strategy will position the UK well to address global challenges while building a sustainable and prosperous future. By fostering cross-sectoral synergies, tackling blockers to investment, and leveraging our sectors for strategic advantage, the UK can craft a plan for growth in an era of global competition.
A data-driven, long-term approach to industrial policy, aligned through meaningful government and industry collaboration, will ensure the UK remains a global leader in advanced sectors such as aerospace, defence, security and space.
Our recommendations focus on these key areas:
Our policy paper published in January 2025 explores these priorities further: ADS PRIORITIES FOR THE 2025 INDUSTRIAL STRATEGY
ADS has consistently called for a comprehensive industrial strategy, with an earlier paper published in 2023 setting out our wider views and priorities. This paper can be found here: A-RENEWED-INDUSTRIAL-STRATEGY-FOR-THE-UK-ADS
Together, our sectors are indispensable for achieving the UK’s economic and strategic
goals and should be recognised accordingly in the Government’s Industrial Strategy.
By fostering cross-sectoral synergies, tackling blockers to investment, and leveraging our
sectors for strategic advantage, the UK can craft a plan for growth in an era of
global competition. Find out more in our new report.
Advanced Manufacturing: Powering the UK Economy. This report from the Manufacturing Five (M5) group sets out how the UK can close the gap with global competitors and unlock manufacturing’s potential to drive prosperity and pride across the UK.
We identified a common vision for advanced manufacturing growth ahead of the General Election.
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