The UK defence sector, and the shipbuilding industry in particular, is dominated by a relatively small number of major companies. This is partly as a result of significant rationalisation and consolidation over the years, the highly specialised nature of its work and its limited customer base. In 2021/22, 42 per cent of total MOD procurement expenditure was with top ten suppliers.102 The MOD acknowledges this and has a Defence SME Action Plan, with a target that 25 per cent of the department’...

The UK defence sector, and the shipbuilding industry in particular, is dominated by a relatively small number of major companies. This is partly as a result of significant rationalisation and consolidation over the years, the highly specialised nature of its work and its limited customer base. In 2021/22, 42 per cent of total MOD procurement expenditure was with top ten suppliers.102 The MOD acknowledges this and has a Defence SME Action Plan, with a target that 25 per cent of the department’s procurement spend will go directly and indirectly to SMEs in 2022.103 Vice Admiral Paul Marshall, Director General for Ships at Defence Equipment & Sup Type: conclusion | Number: 65 | Response status: not_addressed Government response: The MOD published the SME Action Plan in 2022 which outlines the commitments being made to increasing and supporting opportunities for Small and Medium Enterprises (SMEs). It recognises that SMEs are at the heart of the vibrant and flexible UK defence industry, s