The UK defence sector has secured unprecedented levels of foreign direct investment over the past year, with more than £1.4 billion committed since July 2024. This surge in capital has reinforced the UK’s position as a leading hub for defence innovation and manufacturing, while underpinning more than 1,700 new jobs across the country.
The scale of investment reflects growing international confidence in the UK’s defence industrial base, bolstered by the Government’s historic uplift in defence spending and its commitment to positioning defence as an engine of economic growth. Capital inflows are supporting key industrial sites and supply chains nationwide, strengthening sovereign capabilities and opening new opportunities for domestic and international contractors.
Recent projects underline the breadth of activity. Hampshire has seen expansion in drone manufacturing facilities, Belfast has secured additional shipbuilding contracts, and Telford has welcomed investment into artillery systems production. Each represents new demand across the supply chain, particularly in advanced manufacturing, engineering, and supporting business services.
At the same time, global primes and innovative UK firms are expanding their domestic footprints. Ultra Maritime has launched a £20 million manufacturing facility in Greenford, London, which will support 100 staff, including 35 new roles dedicated to producing advanced sonobuoys for anti-submarine warfare. This investment will reinforce the UK’s maritime defence capability and create supply chain requirements in precision manufacturing, electronics, and testing.
Arondite, a British defence technology firm founded by veterans, has announced a £100 million investment in advanced R&D, focused on artificial intelligence to connect autonomous systems. Its new Farringdon base will generate 100 high-skilled jobs while driving demand for software development, systems integration, and data security expertise.
These developments come ahead of the forthcoming Defence Industrial Strategy, which will set out the Government’s approach to strengthening the UK’s defence base, supporting SMEs, and increasing resilience across supply chains. The strategy will align with commitments in the Strategic Defence Review to enhance sovereign capabilities and attract world-class firms to invest in the UK.
For suppliers, both established and new to defence, the momentum presents tangible opportunities. Expansion in areas such as drones, maritime systems, artillery, and AI-enabled platforms will generate sustained demand for components, services, and specialist skills. With the Government signalling a long-term partnership with industry, the current wave of investment marks not only a vote of confidence in UK defence but also a call to the wider supply chain to position for growth.
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Post written by: Vicky Maggiani
Vicky has worked in media for over 25 years and has a wealth of experience in editing and creating copy for a variety of sectors.
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