20
Oct 2026
20th Oct 2026
Rising global defence expenditure and record order books among the world’s largest aerospace contractors are creating significant opportunities for British manufacturers, according to Birmingham-based precision engineering specialist Rowan Precision. The latest financial results from US aerospace and defence groups Northrop Grumman and RTX point to sustained demand for military aircraft, missile systems and naval programmes, with both companies raising their 2026 profit forecasts as orders continue to grow.
RTX reported a record order backlog of $340 billion, an increase of 36% year-on-year, while Northrop Grumman’s backlog reached $109.6 billion at the end of September. Both companies recorded 14% sales growth across key defence divisions, reflecting increased production activity and procurement commitments. For the UK’s precision engineering sector, the figures offer an indication of the manufacturing capacity that will be required to support major defence programmes over the coming years.
Glenn Aston, Chief Financial Officer at Rowan Precision, believes British manufacturers are well placed to benefit from the investment cycle, particularly those with established aerospace credentials and advanced CNC machining capabilities.
“The scale of the order books being reported by the major defence contractors is remarkable, and it tells us a great deal about where the industry is heading,” said Aston. “These programmes represent years of manufacturing activity, with thousands of specialist components required across aircraft, propulsion systems, electronics and supporting equipment. There is a substantial opportunity for British engineering businesses to participate in that demand.”
The expansion of global defence procurement comes as governments across Europe and NATO increase their focus on military readiness, equipment modernisation and domestic industrial capacity. For manufacturers supplying complex machined components, the resulting investment is expected to generate opportunities across established aerospace programmes and emerging defence technologies.
Northrop Grumman reported increased activity on the B-21 Raider strategic bomber and F-35 fighter aircraft programmes, while RTX recorded higher demand for Patriot air defence systems, Standard Missiles and Tomahawk cruise missiles. Such programmes depend upon extensive international manufacturing networks, incorporating specialist suppliers capable of producing components to demanding dimensional, material and quality specifications.
Rowan Precision, which has manufactured precision turned and milled components for more than 40 years, sees particular potential for UK businesses with the technical expertise and quality management systems required by safety-critical industries. The company’s Birmingham manufacturing facility operates advanced sliding head CNC machining and multi-axis fixed head mill-turn equipment, supported by internationally recognised AS9100, ISO 9001 and ISO 13485 accreditations.
Aston believes the strength of Britain’s established engineering supply chain provides a valuable foundation for further growth.
“The UK has an exceptional heritage in aerospace and defence manufacturing, supported by a network of highly capable specialist engineering businesses. “Companies such as Rowan Precision have invested over many years in sophisticated machinery, quality systems and skilled engineers. That experience is particularly relevant when customers are looking for reliable production partners capable of delivering complex components consistently and at scale.”
The increasing volume of defence orders is also placing greater emphasis on manufacturing capacity, production efficiency and supply chain resilience. For precision engineering companies, the opportunity extends across component production, manufacturing process development and the long-term support requirements associated with military equipment.
Aston believes continued investment in CNC technology and engineering skills will be essential to securing a greater share of international defence manufacturing activity.
“Manufacturing capability takes time to develop. Advanced CNC equipment is a significant investment, and the engineering knowledge required to operate it effectively is built through experience and training. “We have always taken a long-term view of our business, investing in the technology and people that allow us to support customers with increasingly sophisticated requirements.”
“As defence programmes expand, there is a real opportunity for the UK to strengthen its position as a trusted manufacturing partner. British engineering businesses have the expertise to make an important contribution.”
The latest results from Northrop Grumman and RTX suggest that defence manufacturing demand will remain substantial well beyond the current financial year, with existing order books supporting production schedules extending into the next decade. For Rowan Precision, the wider aerospace and defence market represents an opportunity to build upon its established manufacturing capabilities while supporting the development of Britain’s specialist engineering supply chain.
Aston concluded:
“These are encouraging figures for anyone involved in precision manufacturing. The global aerospace and defence industry is committing significant resources to future production, and the UK has a great deal to offer. “Our priority is to continue developing Rowan Precision’s capabilities, strengthening our relationships with customers and ensuring we’re well positioned to support the next generation of engineering programmes.
“There is every reason for British manufacturers to approach this period with confidence and ambition.”
Rowan Precision manufactures precision CNC machined components and turned parts from its Birmingham facility, serving customers across aerospace, medical, automotive, electronics and other specialist engineering industries.