The U.K Defence Industry Essay Example | Topics and Well Written Essays - 2500 words

The U.K Defence Industry - Essay Example Defence exports of the nation are worth almost  £5 billion on an average every year (The Telegraph, 2014). In the recent years however the share of government spending upon defence equipments have fell from 10% to 5%. The nation has had 21% share in the defence export market on a global scale from the year 2005 to 2010 (The Telegraph, 2014).The presence of a well developed export market has facilitated the creation of 65,000 jobs in the nation (Brauer and Dunne, 2004). The defence industry of the U.K successfully contributes  £12 billion value addition to the nation’s economy (The Telegraph, 2014). The major challenges faced by the industry are to work in alliance with the government, to assist reformation of the procurement processes, to encourage authorities to spend more on research and reform and to further develop the export capabilities. The Ministry Of Defence of the U.K is seen to follow an open competition policy (Neuman, 2006). The figure below shows some of the largest firms of the U.K in the defence industry in terms of revenue. Companies such as Rolls-Royce, Smiths Group Plc and BAE Systems rely on exports for their growth. Many such U.K based defence companies are looking towards selling their products in the emerging markets of the world which provide a greater opportunity for earning profits than the developed nations. The current paper analyses the general business and completion of three important defence firms of the U.K, namely Rolls-Royce, Smiths Group Plc and BAE Systems (Global Security, 2014). Rolls-Royce is the 16th largest contractor of defence equipments in the world (Neuman, 2006). The company is one of the pioneers in providing defence goods and services and caters to fulfilling the defence equipments and parts needs of many nations of the world.