I4S video: ADS report highlights value security sector realises for UK economy
ADS is the trade organisation advancing the cause of the UK Aerospace, Defence, Security and Space industries with Farnborough International Limited as a wholly-owned subsidiary. This latest report complements the long-running ADS aerospace survey and the recently produced ADS defence survey, and is the first step in presenting the performance of the security sector as represented by ADS.
Key findings of the report – the complete publication can be accessed by clicking our dedicated link to the ADS PDF at the foot of this page – are as follows:
- security employs around 51,000 people directly in the high-tech and service-oriented end of the sector
- domestic security sales were worth GB pound 1.8 billion (81%) of the total GB pound 2.23 billion
- export sales totalled GB pound 430 million, with Asia, North America and Europe accounting for GB pound 154.4 million, GB pound 115.3 million and GB pound 73.3 million respectively
- sales of security equipment and products totalled GB pound 222.97 million (12%) of ADS member sales in the UK
- cyber security sales in the UK accounted for GB pound 248.7 million (14%) – the UK domestic market was the largest purchaser (at 69% of the total) followed by North America (29%)
- total cyber security sales in 2010 (including exports) were GB pound 361 million
- 91% ( GB pound 105 million) of sales to the US were for cyber security (the order intake for security in the North American market reached GB pound 250 million in 2010)
- R&D intensity (the measurement of investment in R&D in relation to sales) was 2.2% in 2010, which compares well against the UK’s 1,000 leading companies at which R&D intensity stood at 1.7% in 2010
- total self funded R&D investment from ADS security members in 2010 amounted to GB pound 50 million
Value – and potential – of an emerging sector
As the first ADS survey of its kind, it highlights the value and potential for this emerging sector, providing a snapshot of ADS members’ operations in this sector and greater depth to the understanding of broader security market figures.
This survey is designed to be the foundation set of figures for the high-tech and service-oriented ends of the sector from which more comprehensive studies can be built to reflect the performance of the security industry in its totality.
In turn, this will give wider understanding to ADS members, stakeholders and other interested observers of the variety and importance of the security market both in the UK and on the international stage.
Speaking about the report, Derek Marshall (managing director of policy, public relations and Government affairs at ADS), said: “Security is a Cinderella sector within UK manufacturing, and it’s long overdue she had her time at the ball. With Government and the Opposition seeking to support and rebalance the economy towards high end manufacturing and high value jobs with strong export potential, they should look to security which provides all this and helps to ensure that national security objectives are met.”
Marshall continued: “We have strong domestic demand but there’s still room for improvement in making the national security market work more efficiently. The Government’s forthcoming White Paper on Technology, Equipment and Support for UK Defence and Security should accept industry’s recommendation that a senior official ought to be appointed to deliver greater coherence in the UK’s security market. This would help to deliver the greater co-ordination that’s needed to make UK security industry offerings more attractive to overseas buyers.”
Looking towards the emerging markets
The ADS spokesperson also feels the domestic market is a starting point from which the security industry can build on its strong export success in the US.
“Now, we must look to the emerging markets and opportunities in other markets like Asia and South America. The Government has made it clear that this is where British industry should look to in these troubled times, and the security industry is keen to work hand-in-hand with the coalition to bring this about.”
In conclusion, Marshall added: “This survey shows that Government and industry have a superb opportunity to work together and even more closely on promoting UK security systems and services capabilities around the world.”
ADS also encompasses the British Aviation Group (BAG), and was formed from the merger of the Association of Police and Public Security Suppliers (APPSS), the Defence Manufacturers Association (DMA) and the Society of British Aerospace Companies (SBAC) in October 2009.
*ADS and its members are active contributors to the work of the UK Security and Resilience Industry Suppliers’ Community (RISC) which acts as the UK Government’s principal channel of communication with the security industry.
For more information about RISC and the policy recommendations it submitted in the context of the Government’s consultation paper on Equipment, Support and Technology for UK Defence and Security (ESTUDS), visit: http://www.riscuk.org/about
I4S video: ADS report highlights value security sector realises for UK economy
ADS is the trade organisation advancing the cause of the UK Aerospace, Defence, Security and Space industries with Farnborough International […]
IFSEC Insider
IFSEC Insider | Security and Fire News and Resources