Welsh businesses, universities and colleges can now access new
opportunities in the growing defence sector through Wales
Regional Defence and Security Cluster, which was launched today
(9 March).
The cluster brings together organisations — from small businesses
to global prime contractors — to strengthen Wales's defence
supply chain, develop new technologies, and create skilled,
well-paid jobs. Wales's combined defence and aerospace sector
directly employs 16,000 people, turnover of £3.7bn and
contributes approximately £1.5 billion in gross value added (GVA)
to the Welsh economy.
The launch follows the signing of the Wales Defence Growth Deal
Memorandum of Understanding, which allocates £50 million to Wales
from a £250 million UK-wide investment in regional defence
growth. The UK government has committed to increasing defence
spending to 2.6% of GDP by 2027–28, rising to 5% of GDP on
national security by 2035 — creating significant new
opportunities for Welsh businesses.
The cluster will help Welsh companies, particularly smaller
businesses, access Ministry of Defence contracts, develop their
supply chains, and grow their share of defence spending. Wales
currently receives around 3% of total MOD expenditure. The aim is
to increase this to 5% or more as overall UK defence spending
rises.
The cluster is industry-led, chaired by representatives from
Airbus Defence and Space and Thales, and supported by Welsh
Government and the MoD. It connects businesses with Wales's eight
universities and further education colleges, which carry out
world-class research in areas including cyber security,
opto-electronics and artificial intelligence.
, Cabinet Secretary for
Economy, said: "Wales is already home to eight of the world's top
ten global defence companies. As defence spending increases
across the UK, this cluster will bring businesses, universities
and government together to create good jobs, strong supply chains
and lasting economic growth."
Secretary of State for Wales said: “In an increasingly uncertain
world Wales's vital role in the defence of the United Kingdom is
becoming ever more important.
“With the signing of the Defence Growth Deal and the
establishment of the Defence and Security Cluster we are ensuring
that Wales is best placed to contribute to the UK's national
security, as well as our economic growth.”
Minister for Defence Readiness and Industry, MP said:
“Wales is central to the defence of the UK. This cluster will
help see Welsh businesses of all sizes lead the way in the
technologies that will define our security for decades to
come.
“By making defence an engine for growth, we are creating skilled
opportunities while securing our future together.”
Notes to editors
- The Wales Defence and Security Cluster is part of the MoD's
strategy to develop regional defence clusters across the UK,
following the triple helix model connecting business, academia
and government.
- The Wales Defence Growth Deal focuses on autonomous
capabilities, drawing on existing Welsh strengths in
opto-electronics, cyber security and semiconductors.
- The cluster will service the needs of industry, from SMEs to
primes, including those aspiring to enter the defence supply
chain.
