Most British manufacturers now eyeing defence work

Nearly three-quarters of British manufacturers are already working in defence or exploring how to get into it, and four in five have adopted or are trialling artificial intelligence, according to the accountancy firm Crowe.

The findings come from the firm’s Manufacturing Outlook Report, produced with the Confederation of British Metalforming, which found 72 per cent of those surveyed engaged in or examining defence manufacturing opportunities and 80 per cent adopting or actively trialling AI.

The same survey found the pressures on the sector have not eased at all. Rising operating costs were named as the biggest barrier to growth by 57 per cent, and 62 per cent put skills shortages at the top of their recruitment difficulties.

Crowe said defence manufacturing was emerging as a significant opportunity amid increased focus on national security, supply chain resilience and domestic manufacturing capability.

Stuart Weekes, partner and head of manufacturing at Crowe, said manufacturing remained central to British ambitions for innovation, productivity, economic growth and national resilience while Stephen Morley, president of the Confederation of British Metalforming, said manufacturers were dealing with cost and skills pressures while investing in AI, exploring new markets and considering opportunities to bring production back to the United Kingdom.

Seventy-two per cent is a remarkable proportion for a sector where defence has historically been a specialist niche served by a few hundred firms, and it reflects a change in how British industry reads the next decade rather than a change in how much work is actually available. Whether the department can absorb that interest is a different question, since the barriers to becoming a defence supplier have less to do with willingness than with security clearances, quality accreditation and the time it takes to get onto a prime contractor’s approved list.