22
Feb 2026
15th Feb 2026
With UK defence and national security spending set to rise to 5% of GDP by 2035 — including a core 3.5% defence budget — the government has signalled the most significant long-term commitment to the sector in decades. Framed within the Modern Industrial Strategy as both a national security imperative and a driver of economic growth, the announcement presents a substantial opportunity for manufacturers across the country.
For Birmingham-based precision engineering specialist Rowan Precision, the direction of travel is clear.
The defence industry already supports more than 272,000 UK jobs, with a further 50,000 forecast by 2035. Exports reached a 40-year high of £20bn in 2025, while £1.4bn in foreign direct investment has flowed into the sector since 2024. Yet despite around 12,000 SMEs already operating in defence, only 4% of Ministry of Defence contracts are currently awarded directly to smaller firms — a gap the government is seeking to close with a new SME support hub and a target of £7.5bn annually flowing to SMEs by 2028.
Rowan Precision believes it is well placed to play a larger role.
The company operates to AS9100 aerospace quality management standards — a benchmark certification that aligns closely with the rigorous traceability, risk management and documentation requirements demanded within defence supply chains. Combined with its advanced multi-axis CNC machining capability and experience in producing high-precision components for safety-critical applications, the business sees strong capability overlap.
“AS9100 accreditation reflects disciplined processes, accountability and continuous improvement,” said CFO Glenn Aston. “Those principles are fundamental in defence manufacturing, where quality, reliability and compliance are non-negotiable.”
The defence opportunity extends well beyond headline platforms such as aircraft and naval systems. Modern procurement spans digital systems, secure infrastructure, maintenance support, advanced materials and reshored supply chain components. For a precision engineering SME, that breadth presents multiple potential entry points.
Technical Sales Manager Neil Williams believes many manufacturers underestimate how transferable their capabilities can be.
“In reality, the supply chain requires highly specialised machined components, complex assemblies and precision-engineered parts manufactured to tight tolerances — exactly the kind of work we deliver every day.”
Rowan Precision’s investment in high-spec CNC mill-turn centres, inspection technology and skilled machinists has been driven by aerospace demand, but the same infrastructure is directly relevant to defence requirements. The business also benefits from its West Midlands location — a region already synonymous with advanced manufacturing and engineering heritage.
“With 70% of defence industry jobs located outside London and the South East, there is a genuine regional growth opportunity,” Aston added. “For manufacturers in the Midlands – it could translate into long-term, high-value contracts that strengthen local supply chains.”
However, both leaders acknowledge that entering or expanding within defence requires preparation. Security compliance, capital investment, accreditation maintenance and procurement literacy all demand strategic planning.
“This market requires investment, collaboration and a lear understanding of where your capabilities align with defence needs. But for businesses willing to engage early and build the right partnerships, the opportunity is significant” explains Aston
As government policy increasingly links defence spending with industrial resilience and regional prosperity, Rowan Precision is watching developments closely. For Aston, the rise in defence investment represents more than an economic statistic.
“Defence is becoming a cornerstone of the UK’s growth strategy,” he said. “For manufacturers with the right certifications, technical depth and quality culture, this is a moment to step forward. If we position ourselves correctly, we can contribute to national security while strengthening British manufacturing for the long term.”