New group to bring together organisations in Wales’ defence sector

Welsh businesses, universities and colleges can now access opportunities in the growing defence sector through Wales Regional Defence and Security Cluster, launched today (9 March).

The cluster brings together organisations including small businesses and global prime contractors to strengthen Wales’s defence supply chain, develop new technologies, and create skilled, well-paid jobs.

Wales’ combined defence and aerospace sector directly employs 16,000 people, has a turnover of £3.7 billion and contributes approximately £1.5 billion in gross value added (GVA) to the Welsh economy.

The launch follows the signing of the Wales Defence Growth Deal Memorandum of Understanding, which allocates £50 million to Wales from a £250 million UK-wide investment in regional defence growth.

The Wales Defence Growth Deal focuses on autonomous capabilities, drawing on existing Welsh strengths in opto-electronics, cyber security and semiconductors.

The UK government has committed to increasing defence spending to 2.6% of GDP by 2027–28, rising to 5% of GDP on national security by 2035 — creating significant new opportunities for Welsh businesses.

The cluster aims to support Welsh companies, particularly smaller businesses, to access Ministry of Defence contracts, develop their supply chains, and grow their share of defence spending.

Wales currently receives around 3% of total MOD expenditure. The aim is to increase this to 5% or more as overall UK defence spending rises.

The cluster is industry-led, chaired by representatives from Airbus Defence and Space and Thales, and supported by Welsh Government and the MoD.

It is part of the MoD’s strategy to develop regional defence clusters across the UK, following the triple helix model connecting business, academia and government.

It connects businesses with Wales’s eight universities and further education colleges, which carry out world-class research in areas including cyber security, opto-electronics and artificial intelligence.

Rebecca Evans, Cabinet Secretary for Economy, said: “Wales is already home to eight of the world’s top ten global defence companies. As defence spending increases across the UK, this cluster will bring businesses, universities and government together to create good jobs, strong supply chains and lasting economic growth.”

Secretary of State for Wales Jo Stevens said: “In an increasingly uncertain world Wales’s vital role in the defence of the United Kingdom is becoming ever more important.

“With the signing of the Defence Growth Deal and the establishment of the Defence and Security Cluster we are ensuring that Wales is best placed to contribute to the UK’s national security, as well as our economic growth.”

Minister for Defence Readiness and Industry, Luke Pollard MP said: “Wales is central to the defence of the UK. This cluster will help see Welsh businesses of all sizes lead the way in the technologies that will define our security for decades to come.

“By making defence an engine for growth, we are creating skilled opportunities while securing our future together.”

Universities Wales said: “We welcome the launch of the Wales Defence and Security Cluster, which represents a major step forward in strengthening Wales’ contribution to the UK’s defence and security landscape.

“By bringing together universities, industry, SMEs, and government, the cluster will accelerate innovation, improve market access, and support national resilience at a time when defence and security challenges are rapidly evolving.

“The formation of this cluster recognises the strengths Wales already offers – from advanced engineering and digital capability to world‑leading research excellence – and highlights the pivotal role universities play in generating the research, skills and innovation that underpin technological development.

“Following the recent announcement of the £50 million Wales Defence Growth Deal, the cluster will provide Welsh universities with a vital bridge between cutting‑edge research and real‑world defence and security needs.”