Executive Summary
After oil, defence is arguably the second largest industry in the world. The
defence industry in the UK has restructured and is poised to play a leading
role within an evolving European-wide reorganisation of defence equipment
suppliers. In 1994/1995, the UK defence equipment budget was £8.82bn.
Although two companies, British Aerospace (BAe) and General Electric Company
(GEC), dominate the UK defence industry, there are over 150 contracting firms
which are paid £5m or more by the Ministry of Defence (MoD) each year.
More than 550 UK defence equipment and service suppliers express a keenness to
meet the requirements of friendly nations around the world. The purpose of the
Defence Export Services Organisation (DESO) is outlined.
The advent of a Labour Administration, should this occur, is not expected to
affect the defence industry adversely. The proposed defence review, matching
commitments to resources, is to be welcomed rather than feared.
Defence-related matters are notoriously `classified' and surrounded by
obscuration in the UK. This report, collated from a wide selection of
unclassified sources, clarifies the detail of recently introduced and future
defence equipment.
The defence equipment budget is forecast to increase to £10.96bn by the
year 2000/2001, of which sea systems will account for 29.5%, land systems for
18.1%, air systems for 37% and other systems for 15.4%.
Sixth Edition 1996
Edited by Kim Potts
ISBN 1-85765-594-X
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