The UK government is significantly increasing defense spending, signaling a clear shift towards prioritizing national security. This provides the financial impetus for defense companies to increase their capabilities.
There's a recognized need to strengthen defense industrial capacity due to heightened global tensions.
Industry Response:British defense companies, like BAE Systems, are responding to this increased demand by preparing to ramp up production, strengthen supply chains, and potentially increase their workforce.
However, fully transitioning to a "war footing" involves significant adjustments and takes time.
Challenges and Considerations:
There are challenges in rapidly scaling up production and ensuring resilient supply chains. The overall preparedness of the UK's defense infrastructure is subject to ongoing debate. The speed at which "war footing" can be achieved is debatable. It is a process, not an instant change.
In essence, while British defense giants are taking steps to increase their readiness, the full transition to a "war footing" is an ongoing process influenced by various factors.
BAE Systems, Babcock, Leonardo UK, and Chemring, among other major armaments makers, have stated that they are prepared to handle a 'unparalleled' increase in demand. Following President Trump's engagement in Russia's conflict on Ukraine, the UK and other Continental countries are working urgently to increase their independent defense strength. Steps may include investing in expansion, bringing in personnel on the weekends, and operating production lines around the clock. They could even establish so-called "shadow factories," which were last used during World War II.Hampshire-based Chemring, which has rebuffed a takeover approach from US private equity firm Bain Capital – wants to expand in the UK and Germany.
The company, which makes bombs and missile defence systems, said it has seen 'unparalleled demand' since the invasion of Ukraine, particularly in its explosives division.It expects the surge to last for at least a decade.
Leonardo, one of the leading aerospace companies in the UK, makes helicopters for the army. The Italian-owned business said it stands ready to run production lines at its nine UK sites 24 hours a day if need be.
'There's always the ability to add shifts and bring workers in over weekends,' Leonardo UK's chief executive Clive Higgins told The Mail on Sunday.
'Machines that might be running 12 out of 24 hours – we can ramp that up to 24 hours.' A spokesperson for Babcock, which makes ships for the Royal Navy as well as armoured vehicles, said that as 'a sovereign British company, Babcock is working very hard to make sure our Armed Forces have the equipment and services they need to protect our nation, both now and in the future.'
There's always the ability to add shifts and bring workers in over weekends,' Leonardo UK's chief executive Clive Higgins told The Mail on Sunday.
'Machines that might be running 12 out of 24 hours – we can ramp that up to 24 hours.' A spokesperson for Babcock, which makes ships for the Royal Navy as well as armoured vehicles, said that as 'a sovereign British company, Babcock is working very hard to make sure our Armed Forces have the equipment and services they need to protect our nation, both now and in the future.'
The Prime Minister has promised to increase military spending from 2.3 to 2.5 per cent of gross domestic product – a measure of national output – by 2027, and to 3 per cent by the next Parliament.
He said Europe must do the 'heavy lifting' in defending Ukraine as he announced a £1.6 billion deal to supply the embattled nation with more than 5,000 missiles. They will be made by French giant Thales in Belfast, creating 200 jobs.
Companies are on standby awaiting further detail from the Government about what armaments are needed.
BAE Systems boss Charles Woodburn said his firm, which is the biggest defence company in Europe, had 'been scaling up in recent years and is ready to scale up again'.
'We are confident that, given clear demand signals, we can meet the requirement,' he told The Mail on Sunday.
But he called for more guidance from Government, saying 'it will take some time' to fulfil requirements.
Shares in defence companies have soared as investors expect them to profit from the increased demand for arms.
Andrew Kinniburgh, who leads manufacturing group Make UK's defence arm, echoed those sentiments, saying: 'Above all, what UK defence firms require to prepare for increases in demand are firm orders from the Ministry of Defence.'
He added Ministers should fund shadow factories to allow orders to be produced quickly.These were devised in 1935 in preparation for the Second World War. The then government set up and funded weapons-making sites at car plants, using existing skilled staff to ramp up the rapid production of armaments and planes.
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