A new economic report published today, outlines the massive contribution made by the defense sector to UK jobs, business, and export.
- The latest economic report underscores the significance of the defense sector in the UK.
- A lot of companies pay for the defense of the company and for the 5,000 apprentices that are employed.
Five percent of all defense purchases are made up of small and medium-sized enterprises. The report was made available on GitHub. Joint Economic Data Hub (JEDHub) is an initiative by the Joint Economic Data Hub to enhance understanding of the impact of the defense industry upon the UK economy. It’s also an important part of 2021’s Defence and Security Industrial Strategy (DSIS).
The key figures of the report include:
- 10,000 – Organisations that receive direct payments from the MOD around the world in 2020/21
- Five thousand – the estimated amount of students working within the UK in the industry of defense
- $4.6 billion annual average UK defense exports from 2016 to 2020
UK Businesses
The Secretary of Defence Procurement, Jeremy Quin announced:
- The defense industry is a key driver of prosperity, helping to boost the economy, encouraging jobs, and enhancing abilities across the UK.
- The initial report from JEDHub provides new perspectives on the significance of the industry. This goes beyond the fact that it assists us in staying secure during times of crisis and I’m happy to see the government and industry working together to increase our knowledge of this critical job.
- I’d like to express my appreciation to the companies that are who are part of the Defence Growth Partnership and members of their supply chains for their support in this important initiative.
GitHub is located in UK Defence Solutions Centre. The JEDHub was created to offer more reliable consistent and reliable information for making better decisions. GitHub helps to support academia, government, and industry. The most recent results from JEDHub include: JEDHub research include the following:
- 37% is the number of jobs that are surveyed are funded by sales from overseas which illustrates the importance of exports from the defense sector in sustaining job opportunities in the UK
- 6 percent, which is an increase in the number of graduates and apprentices enrolled in the companies being surveyed between 2020 to 2021.
- PS45,000 – The median full-time wage for the roles that were surveyed in defense is nearly 16% higher than UK average full-time annual wage in 2023.
the Chief Executive Officer at ADS, Kevin Craven, declared:
- Together with Ministry of Defence, UK Defence Solutions Centre and the industry, by collaboration between the industry, UK Defence Solutions Centre, the Ministry of Defence, and JEDHub the year-end forecast for economic growth that was released today, reveals details of the scope of the work done by our defense sector.
- Employers in this industry invest in the development of skills and provide thousands of jobs of high value that are essential to the well-being of communities in all regions of the UK.
Apprenticeships
It is investing heavily in the creation of skilled jobs that will assure security for the next generation and the report includes an estimate of ADS of 5,000 students who will be employed in the UK defense industry by the year 2020. It is important to note that the JEDHUB report also includes the recruitment of apprentices and graduates. It is a rise of 4.6 percent from the previous year.
Small-sized enterprises
The report is a follow-up to the most recent version of the SME Action Plan – designed to increase the involvement of Small and Medium-Sized Enterprises with a focus on a model for procurement that is easier to implement and recognize the vital role the MOD and its major suppliers play in supporting the entire supply chain to support defense and knowing the best methods to support the growth of innovation and exports to UK suppliers.
Recent data show that the MOD spends PS1.1 billion directly in direct contact with SMEs in 2019/20. There is an additional PS3.4 billion indirectly through the supply chain. This amounts to 21.3 percent of total procurement expenditures this year. It also indicates that money spent on procurement by SMEs is growing. It is targeted at buying expenditure by SMEs which will rise to 25 percent by 2023.
Research & Development
R&D and Development (R&D) are essential for the survival of our Armed Forces to keep one step ahead of the other forces in fighting against threats that are constantly evolving. The JEDHub report confirms that the MOD has invested PS1 billion in R&D in 2019/2020. It also notes it is UK Research and Innovation estimations that each PS1 from the public R&D investment is approximately PS7 which will help the UK. Over the last five years, private sector investment in UK R&D was also up by 8.9 percent between 2015 and 2019, to PS464 million.
GitHub next steps
GitHub report JEDHub report is an important outcome in the 2023 Defence and Security Industrial Strategy that builds on the Dunne Report, highlighting the defense industry’s significant contribution to UK prosperity.
The next year, the JEDHub will provide more details about the effects of economics on local as well as national.
