Leonardo has made a significant impact on the UK economy, contributing £2.5 billion to the nation’s GDP in 2023, according to a new report by Oxford Economics.
The report, released at the Farnborough International Airshow, highlights Leonardo’s expanding role in economic growth and its increasing investment in research and development over the past five years.
The report points out that Leonardo UK has more than doubled its R&D spending since 2018, reaching nearly £500 million in 2023 alone. Over the previous five years, the company invested £1.4 billion in R&D activities. These investments have focused on advanced technologies such as artificial intelligence, autonomy, data fusion, and advanced manufacturing, which are expected to be central to the company’s future growth.
Stefano Pontecorvo, Chairman of Leonardo, expressed pride in the company’s forward-looking projects, stating, “Research and development is at the heart of Leonardo’s 2024 – 2028 Industrial Plan and underpins our success internationally, including at our successful UK-based business.”
The company’s operations supported nearly 31,700 jobs across the UK in 2023, including 12,900 jobs generated through its supply chain. Leonardo’s supply chain spending amounted to £960 million, with 75% of this directed towards small and medium-sized enterprises (SMEs).
Clive Higgins, Chair and CEO of Leonardo UK, commented, “Data and software is a core onshore capability at Leonardo UK, informed by substantial experience of how our products are used by military operators. Targeted R&D will help us innovate on this foundation through a variety of activities, including in the fields of digitalisation, data fusion and AI.”
Leonardo’s workforce has also evolved, with 50% of its 8,200 direct employees being highly skilled engineers. These employees contribute significantly to the UK economy, with each worker generating an average of £99,000 annually, compared to the UK average of £63,000. This productivity highlights the high value and impact of Leonardo’s operations.
The company’s export activities have been “robust”, with nearly £1 billion of products and services exported in 2023 and a further £4.4 billion over the previous five years.
These exports are crucial for sustained economic growth in the UK, say the firm.
That’s the AW149 confirmed offering then.
Has a good spec without being too complex and is starting to pick up export orders.
Just a shame that we’ll probably only order 20 to replace Puma.
It will be one of those decisions we all watch, does Labour put our money where its Manifesto commitments are. They want growth and inward investment in any high tech is a good start, fingers crossed 🤞🏻
M8 I think it’s one of a long series of UK Defence industry stories all piling in when they know there is defence and spending review going on. For Labour they have some decisions to make that they can’t duck, and let’s face it we have a decent working partnership with Italy re FCA.
Would be nice if the UK had even a small local shareholding-good for morale and acts as a kind of anchor against, as with other foreign owned companies, a possible future withdrawal.