Telford-based firm Transicon has welcomed the Government’s increased defence spending pledge – but called for major changes around access for SMEs.
The long-awaited Defence Investment Plan has now finally been published – with a further £13.5bn of investment to drive innovation and development of drones and autonomous systems across the sector.
Jennifer Hughes, general manager of Telford-based automation specialist Transicon, which has been actively developing projects with partners in the defence sector supply chain, welcomed the opportunities the plan provides for SME supply chain businesses,
But, she believes the Government must urgently sort out the complicated procurement process for SMEs so that firms are in the best possible position to support the UK in its ambitious plans,
She said historically firms, especially in the West Midlands, face large barriers to defence contracts and that has to change to ensure big opportunities are not missed.
“This is news that many of us who supply the defence sector have been waiting for, for some time,” said Jennifer. “It has taken longer than expected but the Government has now laid out its plans so there is clarity moving forward.
“However, for me there is a big issue around SMEs, and how they can play their part in helping the Government fulfil their ambitious plans. This plan presents huge opportunities and we need to ensure that small businesses have clearer access to the market.
“Currently, contracts in the defence sector are hidden behind complex procurement routes, pre-qualification processes and portals that smaller businesses often do not have the time or resource to keep navigating.
“These are significant barriers of entry for SMEs which need addressing. The increased investment is great, but currently brilliant SMEs face these hurdles to the defence sector and if that continues, then it really is a wasted opportunity for the Government to engage UK businesses at a critical time.”
The defence plan was thrown into turmoil earlier in June when former defence secretary John Healey resigned. Previously the MP had outlined a plan to end the UK’s reliance on the US and overseas supply chain, by committing to domestic manufacturing and ‘buying British’.
For that to happen, Jennifer says steps need to be introduced to prevent talented SMEs from being priced out of the process.
“There needs to be better collaboration by all to build strong UK supply chains with less reliance on overseas suppliers,” said Jennifer. “The defence industry has its own language, their own commercial terms with defence contracting standards and it really is a specialist area of knowledge.
“For SMEs, where we wear a number of hats and don’t have separate commercial departments or legal resources, it makes it almost impossible at times. Following this announcement, we’d urge the Government to work with smaller businesses to help remove some of these barriers and improve access to key defence sector contracts.”
Telford College, which is to train the next generation of defence workers after being named a delivery partner for the East and West Midlands Defence Technical Excellence College, also reacted to the Government’s Defence Investment Plan
Principal and CEO Lawrence Wood said: “Today's multi-billion pound Defence Investment Plan represents a huge opportunity for businesses across the country but particularly those here in Telford and Wrekin and across the Midlands. Defence is already a vital part of our regional economy, and this level of investment will create real, long-term demand for highly skilled workers.
"As an identified delivery partner within the East and West Midlands Defence TEC, Telford College is proud to be playing its part in the defence of the nation by training the next generation of defence workers.
“Whether it's engineering, digital technologies or advanced manufacturing, we are ready to support businesses and individuals to seize the opportunities this investment will create."
