Defence investment risks falling short without SME access, warns Scottish engineering leader

While these commitments are commendable, they could fall short if SMEs like ours are not given a chance to participate. We have the skills, infrastructure and readiness to contribute right away — but we lack the access needed to do so.

The government’s strategy, including plans for up to 12 new nuclear-powered attack submarines and a significant increase in munitions production, is a crucial step toward rebuilding the UK’s industrial base. But unless the entire supply chain is involved from the beginning, the opportunity to strengthen our sovereign capabilities at pace may be missed.

Right now, the procurement process is still dominated by a select group of Tier One contractors. SMEs are often brought in too late — if at all. That has to change if we’re serious about resilience.

Gerry Hughes, Managing Director, KRG Specialist Engineering

At KRG, based in Scotland, we manufacture precision-engineered components for defence clients across the UK. We are ready to do more. But to do so, the government must take four essential steps:

• Early Engagement: Bring SMEs in at the design and planning stage, not just manufacturing.
• Simplified Procurement: Cut the red tape that delays or blocks smaller firms from qualifying.
• Pipeline Visibility: Give suppliers a clear view of future demand so we can plan and invest.
• Regional Equity: Ensure spending reaches across the UK, including Scotland’s advanced engineering sector.

We don’t need more reviews or consultations — we need access to live programmes. SMEs cannot support the UK’s defence ambitions from the sidelines; we need to be directly involved.

This is a once-in-a-generation opportunity to strengthen the UK’s defence capabilities and industrial base. The opportunity is real. Let’s make sure the access is too.