Latest news with #ADSGroup
Ya Biladi
4 days ago
- Business
- Ya Biladi
UK to sign defense agreements with Morocco as Rabat aspires to build local industry
The United Kingdom is planning to invest in Morocco's defense industry, a move announced as UK Foreign Secretary David Lammy voiced London's recent support for Morocco's autonomy plan for the Sahara. While in Rabat on June 2, Lammy and Moroccan Foreign Minister Nasser Bourita signed several agreements to deepen cooperation between the two kingdoms. A joint statement released the same day also announced the upcoming signing of a series of defense sector agreements. Among these is a Memorandum of Understanding (MoU) between the UK defense and security trade association ADS Group—representing the aerospace, defense, security, and space industries in the United Kingdom—and the Moroccan Agency for Investment and Export Development. The agreement aims to strengthen links between the defense industries of both countries, the statement reads. Another MoU will be signed between British multinational BAE Systems, the National Defense Administration of Morocco, and the Moroccan Agency for Investment and Export Development. This agreement focuses on investment and the development of capabilities within the defense sector, the same document stresses. These announcements mark a significant milestone for Morocco, which aspires to develop a local defense industry, offering promising opportunities for major investors in the field. The UK could be one of the first Western countries to formalize such cooperation with Morocco. For a local defense industry Morocco has already signed major players for a local defense industry. In September 2024, Tata Advanced Systems signed a strategic partnership with Morocco's National Defense Administration to establish a plant in Casablanca for the local production of WhAP 8×8 armored combat vehicles. In January 2025, Moroccan authorities also secured a deal with Turkish defense producer Baykar, which announced the creation of a subsidiary named Atlas Defense in Rabat. The facility will design, produce, and maintain unmanned aerial vehicles (UAVs), including models like the Bayraktar TB2 and Akıncı. Morocco has also partnered with Israeli firm BlueBird Aero Systems to establish a drone factory. Although construction began in April 2024, the project has faced delays due to the ongoing conflict in Gaza. Back in 2023, Israel's Elbit Systems announced plans to establish two military equipment factories in Morocco, with one potentially located in Casablanca. Most recently, Brazilian aerospace manufacturer Embraer also pledged to invest in Morocco's aerospace sector, including plans to establish a maintenance, repair, and overhaul (MRO) facility. This initiative aims to enhance Morocco's aerospace infrastructure and support the Royal Air Maroc's fleet expansion. It is worth noting that Morocco laid the groundwork for its defense industry with Law 10.20, published in the Official Bulletin on August 4, 2020. This legal framework establishes the foundation for developing a domestic defense manufacturing sector, providing regulation and oversight for the production, trade, and management of defense and security equipment.
Yahoo
27-05-2025
- Business
- Yahoo
The UK defense industry's biggest problem isn't just cash — it's also companies like Amazon
Like much of the world, the UK is ramping up its defense spending. But defense companies are now competing with an expanding talent-hungry tech sector for scarce skills. "We need a sea of talent," a defense sector insider told BI. "At the moment, it's a puddle." When Calvin Bailey — a member of the UK parliament — was a squadron commander in the country's Royal Air Force, he saw a shift in how his engineering-heavy workforce changed careers. In the early 2010s, people would leave the service "like for like," he told Business Insider — meaning they were leaving the military for complementary roles in the defense and aerospace industry. However, by around 2017, he said, a new sprawl of high-tech companies and major infrastructure projects created a demand for skills that the military had nurtured, such as robotics, advanced engineering, and logistics. Bailey wrote in a recent piece for War on the Rocks that he watched as the military "hemorrhaged" certified aircraft engineers. "I found myself competing with unlikely adversaries: Amazon logistics hubs," he wrote. As the UK attempts to redress the effects of decades of reduced military spending, it's not just a steep price tag that has experts worried. It's a shrunken — and highly competitive — skills pipeline. Bailey still doesn't think the UK is spending enough, he told BI. But even if the country throws money at it, "you haven't got the skills base with which to go and do the work that's required." Paul Oxley, a spokesperson for UK defense trade association ADS Group, told BI that demand for skilled workers now presents the defense industry's "largest barrier for growth." This covers everything from traditional skills like welding and high-end engineering, to growing fields like cybersecurity, digital, and AI capabilities. Oxley said that surveys of ADS members have seen the issue of talent leapfrog energy prices to become the top worry for many companies. These concerns come amid an increased commitment by the UK to defense spending — to 2.5% of GDP — that has defense-related industries looking out for new orders. Big projects are already in the works. Dreadnought-class submarines, the Tempest fighter jet, and Type 26 and 31 frigates are due to come into service in the next decade or so. Yet in March, Kevin Craven, the head of ADS Group, warned lawmakers that skills shortages are "combining to a point where both the defence and aerospace industry cannot fulfil the demand that they have." These warnings also come as the government prepares to publish its latest Defence Industrial Strategy, which a Ministry of Defence spokesperson said will help the UK have the "capability, skills and industrial resilience" for warfighting. Multiple skills initiatives are already underway, they added. The UK's defense sector pays an average of £39,900, Oxley said, which is about $53,000 and around 14% higher than the national average. But even that can't always compete with other sectors, Bailey, the MP, said. Meanwhile, many companies, like Amazon, actively recruit UK veterans as part of a government program pledging to support post-service careers. Amazon declined to comment when approached by BI. Bailey shared that other competing industries include infrastructure projects, such as the recent nationwide rollout of electric smart meters. He told BI those leaving the RAF for such companies "would find an easier job — because it's less regulated and controlled and demanding on their skills — paying equal or more than they would expect on the general market." In addition, security clearances make it hard to hire from abroad — and in any case, the UK's nearest European defense industry neighbors are themselves in a scramble for talent. The expansion of a talent-hungry tech sector compounds a much longer-running skills issue. Andrew Kinniburgh, a spokesperson for manufacturing industry trade body Make UK, told the Defence Select Committee in March that the country is in an "arms race" for engineers. Campaigners say STEM has been neglected from the earliest schooldays up, causing a shortage that has seen all sectors — not just military — competing for talent. That situation wasn't helped by the Apprenticeship Levy, a 2016 attempt to invigorate private sector investment in training. It was so cumbersome that schemes fell by 172,000 across all sectors in its first year, according to HR industry body CIPD. The government now says it's streamlining the process. Industry experts told BI that another reason defense sector workforce skills have atrophied is a long-term lack of investment in the military that began in the 1990s. The defense ministry spokesperson told BI that the current government is addressing the country's security "after years of hollowing out." People like naval architects and high-level engineers take decades to nurture, and when orders dry up, "you have skill fade in these areas quite quickly," said Sam Cranny-Evans, a freelance defense analyst and associate fellow at the Royal United Services Institute. "Once they're gone, they're gone," he told BI. "Standing them up again is really hard." COVID-19 lockdowns haven't helped. Suddenly, people with 10 to 15 years left in their careers decided to accelerate their retirement plans, leaving what Oxley called a "handover cliff edge" and a decadelong knowledge gap. The problem has come to a head before. In the early 2000s, BAE Systems took over a contract to produce the Astute-class submarine, following a 10-year gap since the development of the earlier Vanguard-class sub. Dated skills — among other factors — became a major problem, forcing the UK to bring in General Dynamics Electric Boat, a US company, to help at an eventual cost of about $145 million. The project ran years late, exceeded its budget by hundreds of millions of pounds, and spurred multiple reckonings that still reverberate today. Janet Garner, BAE Systems' future workforce director for submarines, told BI the company is focused on ensuring it has a strong submarine workforce. She highlighted its $33.5-million training center and said early careers programs are "up to record levels." An analysis by Navy Lookout highlighted lessons learned, saying that the next-generation Dreadnought went into production with a much more experienced workforce. But across the industry, there's a long road ahead. Oxley and Bailey say there's a lot more to be done, and that skills need to be addressed at the level of education. Both are calling for schools and colleges to develop applied STEM curricula showcasing the appeal of working in defense. Encouraging a much more flexible career structure, allowing people to "zig-zag" between the military and civilian sectors and making the relationship complementary rather than competitive, is also among the suggestions being made. Tan Dhesi, a lawmaker heading up the UK parliament's Defence Select Committee, declined to comment in detail while the inquiries continue, but said that he had seen "clear and consistent" evidence that the issue needs addressing. "We need a sea of talent," Oxley said. "At the moment, it's a puddle." Read the original article on Business Insider
Business Insider
27-05-2025
- Business
- Business Insider
The UK defense industry's biggest problem isn't just cash — it's also companies like Amazon
Like much of the world, the UK is ramping up its defense spending. But defense companies are now competing with an expanding talent-hungry tech sector for scarce skills. "We need a sea of talent," a defense sector insider told BI. "At the moment, it's a puddle." When Calvin Bailey — a member of the UK parliament — was a squadron commander in the country's Royal Air Force, he saw a shift in how his engineering-heavy workforce changed careers. In the early 2010s, people would leave the service "like for like," he told Business Insider — meaning they were leaving the military for complementary roles in the defense and aerospace industry. However, by around 2017, he said, a new sprawl of high-tech companies and major infrastructure projects created a demand for skills that the military had nurtured, such as robotics, advanced engineering, and logistics. Bailey wrote in a recent piece for War on the Rocks that he watched as the military "hemorrhaged" certified aircraft engineers. "I found myself competing with unlikely adversaries: Amazon logistics hubs," he wrote. As the UK attempts to redress the effects of decades of reduced military spending, it's not just a steep price tag that has experts worried. It's a shrunken — and highly competitive — skills pipeline. Bailey still doesn't think the UK is spending enough, he told BI. But even if the country throws money at it, "you haven't got the skills base with which to go and do the work that's required." A skills shortage in the defense industry Paul Oxley, a spokesperson for UK defense trade association ADS Group, told BI that demand for skilled workers now presents the defense industry's "largest barrier for growth." This covers everything from traditional skills like welding and high-end engineering, to growing fields like cybersecurity, digital, and AI capabilities. Oxley said that surveys of ADS members have seen the issue of talent leapfrog energy prices to become the top worry for many companies. These concerns come amid an increased commitment by the UK to defense spending — to 2.5% of GDP — that has defense-related industries looking out for new orders. Big projects are already in the works. Dreadnought-class submarines, the Tempest fighter jet, and Type 26 and 31 frigates are due to come into service in the next decade or so. Yet in March, Kevin Craven, the head of ADS Group, warned lawmakers that skills shortages are "combining to a point where both the defence and aerospace industry cannot fulfil the demand that they have." These warnings also come as the government prepares to publish its latest Defence Industrial Strategy, which a Ministry of Defence spokesperson said will help the UK have the "capability, skills and industrial resilience" for warfighting. Multiple skills initiatives are already underway, they added. An 'arms race' for skills The UK's defense sector pays an average of £39,900, Oxley said, which is about $53,000 and around 14% higher than the national average. But even that can't always compete with other sectors, Bailey, the MP, said. Meanwhile, many companies, like Amazon, actively recruit UK veterans as part of a government program pledging to support post-service careers. Amazon declined to comment when approached by BI. Bailey shared that other competing industries include infrastructure projects, such as the recent nationwide rollout of electric smart meters. He told BI those leaving the RAF for such companies "would find an easier job — because it's less regulated and controlled and demanding on their skills — paying equal or more than they would expect on the general market." In addition, security clearances make it hard to hire from abroad — and in any case, the UK's nearest European defense industry neighbors are themselves in a scramble for talent. A shortage decades in the making The expansion of a talent-hungry tech sector compounds a much longer-running skills issue. Andrew Kinniburgh, a spokesperson for manufacturing industry trade body Make UK, told the Defence Select Committee in March that the country is in an "arms race" for engineers. Campaigners say STEM has been neglected from the earliest schooldays up, causing a shortage that has seen all sectors — not just military — competing for talent. That situation wasn't helped by the Apprenticeship Levy, a 2016 attempt to invigorate private sector investment in training. It was so cumbersome that schemes fell by 172,000 across all sectors in its first year, according to HR industry body CIPD. The government now says it's streamlining the process. The looming threat of 'skill fade' Industry experts told BI that another reason defense sector workforce skills have atrophied is a long-term lack of investment in the military that began in the 1990s. The defense ministry spokesperson told BI that the current government is addressing the country's security "after years of hollowing out." People like naval architects and high-level engineers take decades to nurture, and when orders dry up, "you have skill fade in these areas quite quickly," said Sam Cranny-Evans, a freelance defense analyst and associate fellow at the Royal United Services Institute. "Once they're gone, they're gone," he told BI. "Standing them up again is really hard." COVID-19 lockdowns haven't helped. Suddenly, people with 10 to 15 years left in their careers decided to accelerate their retirement plans, leaving what Oxley called a "handover cliff edge" and a decadelong knowledge gap. The problem has come to a head before. In the early 2000s, BAE Systems took over a contract to produce the Astute-class submarine, following a 10-year gap since the development of the earlier Vanguard-class sub. Dated skills — among other factors — became a major problem, forcing the UK to bring in General Dynamics Electric Boat, a US company, to help at an eventual cost of about $145 million. The project ran years late, exceeded its budget by hundreds of millions of pounds, and spurred multiple reckonings that still reverberate today. Janet Garner, BAE Systems' future workforce director for submarines, told BI the company is focused on ensuring it has a strong submarine workforce. She highlighted its $33.5-million training center and said early careers programs are "up to record levels." An analysis by Navy Lookout highlighted lessons learned, saying that the next-generation Dreadnought went into production with a much more experienced workforce. But across the industry, there's a long road ahead. A 'puddle' of talent Oxley and Bailey say there's a lot more to be done, and that skills need to be addressed at the level of education. Both are calling for schools and colleges to develop applied STEM curricula showcasing the appeal of working in defense. Encouraging a much more flexible career structure, allowing people to "zig-zag" between the military and civilian sectors and making the relationship complementary rather than competitive, is also among the suggestions being made. Tan Dhesi, a lawmaker heading up the UK parliament's Defence Select Committee, declined to comment in detail while the inquiries continue, but said that he had seen "clear and consistent" evidence that the issue needs addressing. "We need a sea of talent," Oxley said. "At the moment, it's a puddle."
Telegraph
26-02-2025
- Business
- Telegraph
Defence industry warns Starmer spending boost is not enough for ‘wartime'
Defence industry bosses have warned the Prime Minister that his spending boost is not enough for 'wartime'. Sir Keir Starmer told Parliament on Wednesday that the Ministry of Defence's budget would rise from 2.3 per cent to 2.5 per cent of gross domestic product (GDP) by 2027, speeding up existing plans to increase defence spending. Kevin Craven, chief executive of ADS Group, the defence trade association, welcomed the pledge but warned that it stopped short of meeting levels required for 'wartime' production. It comes amid warnings war in Europe could break out in the next few years, fuelled by Russia's invasion of Ukraine and fears that Chinese military posturing against Taiwan could bubble over into a full-blown invasion. 'At a peacetime rate' Explaining that Western countries' military stockpiles had largely been sent to Ukraine over the past two years, Mr Craven said: 'The rate at which we're replenishing those stockpiles has been at a peacetime rate. So I would expect that rate to go up. 'Not to a wartime rate, because we're not at war. But, again, there's more certainty now, and therefore those orders to rebuild those stockpiles will start happening at a faster rate.' He said: 'It will not bring an instantaneous surge in capability and capacity,' referring to the £6 billion spending increase. 'We're in a pre-war phase where the threat levels are higher and people can conceive of a conflict in the next three to five years,' Mr Craven continued, adding: 'You've got to open the taps a little bit to be able to plan and deliver a surge when it's necessary.' Britain spent £53.9 billion on defence last year, according to the House of Commons Library. This year that will rise to £56.9 billion. Other defence sources, speaking on condition of anonymity, suggested the industry was waiting for the Government's promised strategic defence review (SDR) – expected to be published before June – before expanding its ability to build tanks, ships and missiles. 'It's a welcome announcement but we're waiting for the SDR,' said one insider. Another said the spending increase lacked the detail necessary for companies to invest in renewed arms production, saying: 'If you decide you want A, B and C, [only] then can you set up extra production lines.' Mr Craven's comments were echoed by Professor Trevor Taylor, of the Rusi defence think tank, who said the industry would greet Sir Keir's spending pledge with 'relief' but warned that further rises would be needed. 'We have to make sure that spending generates capability that deters Russia. We don't want to be thinking ahead to a war: we want to be thinking ahead to deterring a war,' said Prof Taylor. He added: 'We are getting towards the amount that we might need for deterrence, but probably we're not there yet at 2.5 per cent or even 3.' Promises of increased defence spending will be welcomed by arms company bosses. Charles Woodburn, chief executive of BAE Systems, is expected to attend an event in Washington with the Prime Minister on Wednesday night as the latter prepares to meet Donald Trump. American foreign policy under Mr Trump has provoked alarm in European capitals over recent weeks, with his warm embrace of Russia forcing members of the Nato alliance – including Britain – to re-assess their defence spending priorities. British defence spending peaked at 11 per cent of GDP in 1953, falling to an all-time low of 1.9 per cent in 2018. Today it has risen to 2.26 per cent, with the Government saying it will hit 3 per cent by 2034. Nato has a non-binding target for each of its members to spend 2 per cent of GDP on defence.
Yahoo
26-02-2025
- Business
- Yahoo
Defence industry warns Starmer spending boost is not enough for ‘wartime'
Defence industry bosses have warned the Prime Minister that his spending boost is not enough for 'wartime'. Sir Keir Starmer told Parliament on Wednesday that the Ministry of Defence's budget would rise from 2.3 per cent to 2.5 per cent of gross domestic product (GDP) by 2027, speeding up existing plans to increase defence spending. Kevin Craven, chief executive of defence trade association ADS Group, welcomed the pledge but warned that it stopped short of meeting levels required for 'wartime' production. It comes amid warnings war in Europe could break out in the next few years, fuelled by Russia's ongoing invasion of Ukraine and fears that Chinese military posturing against Taiwan could bubble over into a full-blown invasion. Explaining that Western countries' military stockpiles have largely been sent to Ukraine over the past two years, Mr Craven said: 'The rate at which we're replenishing those stockpiles has been at a peacetime rate. So I would expect that rate to go up. 'Not to a wartime rate, because we're not at war. But, again, there's more certainty now, and therefore those orders to rebuild those stockpiles will start happening at a faster rate.' He said: 'It will not bring an instantaneous surge in capability and capacity,' referring to the £6 billion spending increase. 'We're in a pre-war phase where the threat levels are higher and people can conceive of a conflict in the next three to five years,' Mr Craven continued, adding: 'You've got to open the taps a little bit to be able to plan and deliver a surge when it's necessary.' Britain spent £53.9 billion on defence last year, according to the House of Commons Library. This year that will rise to £56.9 billion. Other defence sources, speaking on condition of anonymity, suggested the industry is waiting for the Government's promised Strategic Defence Review (SDR) – expected to be published before June – before expanding their abilities to build tanks, ships and missiles. 'It's a welcome announcement but we're waiting for the SDR,' said one insider. Another said the spending increase was 'welcome' but lacked the detail necessary for companies to invest in renewed arms production, saying: 'If you decide you want A, B and C, [only] then can you set up extra production lines.' Mr Craven's comments were echoed by Professor Trevor Taylor, of the Rusi defence think-tank, who said the industry would greet Sir Keir's spending pledge with 'relief' but warned that further rises would be needed. 'We have to make sure that spending generates capability that deters Russia. We don't want to be thinking ahead to a war: we want to be thinking ahead to deterring a war,' said Prof Taylor. He added: 'We are getting towards the amount that we might need for deterrence, but probably we're not there yet at 2.5 per cent or even 3.' Promises of increased defence spending will be welcomed by arms company bosses. Charles Woodburn, chief executive of BAE Systems, is expected to attend a Washington DC event with the Prime Minister on Wednesday night as the latter prepares to meet Donald Trump. American foreign policy under Mr Trump has provoked alarm in European capitals over recent weeks, with his warm embrace of Russia forcing members of the Nato alliance – including Britain – to re-assess their defence spending priorities. British defence spending peaked at 11 per cent of GDP in 1953, falling to an all-time low of 1.9 per cent in 2018. Today it has risen to 2.26 per cent, with the Government saying it will hit 3 per cent by 2034. Nato has a non-binding target for each of its members to spend 2 per cent of GDP on defence. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
