20
Oct 2026
3rd Nov 2026
Birmingham-based precision engineering specialist Rowan Precision has welcomed new government measures designed to direct more defence investment towards British manufacturers, as rising international defence expenditure creates opportunities for the UK’s specialist engineering supply chain.
The Government’s new defence Offsets policy, announced on 30 October, will require overseas companies securing selected UK defence contracts worth £50 million or more to deliver economic benefits in Britain, including investment in domestic suppliers, manufacturing facilities, apprenticeships and skilled employment.
The measures come amid growing international demand for defence equipment, with recent financial results from aerospace and defence contractors RTX and Northrop Grumman highlighting substantial order books supporting long-term production across military aviation, missile systems and other defence programmes.
Karen Harrison-Thomas, Head of Operations at Rowan Precision, believes the combination of increasing defence expenditure and renewed emphasis on domestic manufacturing presents an opportunity for British engineering businesses.
“The Government’s commitment to strengthening British defence supply chains is encouraging for manufacturers like Rowan Precision. We have a tremendous amount of engineering expertise in this country, and the opportunity now is to translate that capability into long-term manufacturing contracts,” said Harrison-Thomas.
“Major defence programmes depend on thousands of precision-engineered components, manufactured consistently to demanding specifications. British companies have the skills, technology and quality systems to make a significant contribution.”
Backing British Manufacturing
Under the new policy, qualifying overseas defence contractors could be required to deliver UK economic benefits equivalent to the value of their contracts, creating opportunities for British businesses to enter international supply chains.
The Ministry of Defence reports that its investment supported 274,000 UK industry jobs last year, with £34.1 billion directed towards UK-based businesses. The new measures will apply to selected procurements from April 2027.
Rowan Precision has manufactured precision turned and milled components for more than 40 years, supplying customers across aerospace, medical, automotive, electronics and specialist engineering sectors.
Its Birmingham facility operates advanced sliding head CNC machining and multi-axis fixed head mill-turn equipment, supported by AS9100, ISO 9001 and ISO 13485 certifications.
Harrison-Thomas believes the capabilities developed by established British engineering companies provide a strong foundation for supporting future defence programmes.
“Precision manufacturing is built on experience, technical knowledge and continued investment. At Rowan Precision, we have spent decades developing our machining capabilities and the skills of our workforce to meet increasingly complex customer requirements.
“As defence procurement places greater emphasis on British suppliers, there is an opportunity for companies with established aerospace credentials to demonstrate what they can deliver.”
Investment in Skills and Manufacturing Capacity
With defence programmes supporting production schedules extending well into the next decade, Rowan Precision believes sustained investment in advanced manufacturing equipment and engineering skills will be essential.
Glenn Aston, Chief Financial Officer at Rowan Precision, said the financial commitments being made across the international defence sector demonstrate the scale of the opportunity.
“The order books being reported by major defence contractors represent years of manufacturing activity. For British engineering businesses, this is an opportunity to invest with confidence, develop new customer relationships and strengthen our position within international supply chains.”
“Advanced CNC machinery, quality systems and skilled engineers all require significant long-term investment. Government procurement policies that recognise and support British manufacturing capability can help create the conditions for that investment.”
Harrison-Thomas concluded: “British engineering has an enormous amount to offer the global defence industry. We have the technical expertise, manufacturing experience and commitment to quality that these programmes demand.”
“The focus now should be on ensuring that British manufacturers are given every opportunity to participate, supporting skilled employment, investment and the continued development of our domestic engineering supply chain.”