Welsh businesses, universities and colleges can now access new opportunities in the growing defence sector through Wales Regional Defence and Security Cluster, which was launched today (9 March).
The cluster brings together organisations — from small businesses to global prime contractors — to strengthen Wales’s defence supply chain, develop new technologies, and create skilled, well-paid jobs. Wales’s combined defence and aerospace sector directly employs 16,000 people, turnover of £3.7bn and contributes approximately £1.5 billion in gross value added (GVA) to the Welsh economy.
The launch follows the signing of the Wales Defence Growth Deal Memorandum of Understanding, which allocates £50 million to Wales from a £250 million UK-wide investment in regional defence growth. The UK government has committed to increasing defence spending to 2.6% of GDP by 2027–28, rising to 5% of GDP on national security by 2035 — creating significant new opportunities for Welsh businesses.
The cluster will help Welsh companies, particularly smaller businesses, access Ministry of Defence contracts, develop their supply chains, and grow their share of defence spending. Wales currently receives around 3% of total MOD expenditure. The aim is to increase this to 5% or more as overall UK defence spending rises.
The cluster is industry-led, chaired by representatives from Airbus Defence and Space and Thales, and supported by Welsh Government and the MoD. It connects businesses with Wales’s eight universities and further education colleges, which carry out world-class research in areas including cyber security, opto-electronics and artificial intelligence.
Rebecca Evans, Cabinet Secretary for Economy, said: “Wales is already home to eight of the world’s top ten global defence companies. As defence spending increases across the UK, this cluster will bring businesses, universities and government together to create good jobs, strong supply chains and lasting economic growth.”
Secretary of State for Wales Jo Stevens said: “In an increasingly uncertain world Wales’s vital role in the defence of the United Kingdom is becoming ever more important.
“With the signing of the Defence Growth Deal and the establishment of the Defence and Security Cluster we are ensuring that Wales is best placed to contribute to the UK’s national security, as well as our economic growth.”
Minister for Defence Readiness and Industry, Luke Pollard MP said:
“Wales is central to the defence of the UK. This cluster will help see Welsh businesses of all sizes lead the way in the technologies that will define our security for decades to come.
“By making defence an engine for growth, we are creating skilled opportunities while securing our future together.”
