A new report from Make UK Defence has highlighted the ongoing challenges small and medium businesses face when entering the UK defence supply chain, despite growing opportunities driven by increased government investment.
The UK defence sector is in a period of growth. With increased focus on strengthening domestic supply chains, SMEs are expected to play a greater role. However, in practice, gaining access to a market built on long-term partnerships and trust remains a significant challenge.
The report by Make UK Defence seeks to change this. In collaboration with The Business and Commercial division of Lloyds Bank, ‘A Practical Guide to Working in Defence: Support for SMEs in manufacturing’ is designed to give businesses practical guidance on how to navigate the sector and access emerging opportunities.
The supplier assurance barrier
A key finding from the report is that SMEs and mid-tier manufacturers have historically found defence difficult to access. This is often not due to a lack of technical capability, but rather the complexity of regulatory and compliance requirements. Supplier assurance is a good example of this. Assurance must cover a range of areas to a high level of detail, including quality management, cyber security, financial stability and ethical business practices. Meeting these requirements can be resource-intensive, particularly for SMEs with limited internal capacity.
Supplier assurance platforms
Simplifying entry into the defence sector is not about lowering standards, but about enabling businesses to meet them more efficiently.
For example, collaborative supplier assurance platforms, such as JOSCAR [PH2] from Hellios, are designed to streamline supplier assurance by standardising how businesses share compliance information. As highlighted in the Make UK Defence report, platforms like JOSCAR can help reduce duplication and improve efficiency in meeting assurance requirements.
This is particularly valuable for resource-limited SMEs seeking to engage more effectively with defence buyers.
These platforms provide a centralised view of supplier information across key compliance areas, helping buyers assess risk more consistently across a complex, highly regulated sector.
“The barrier for most SMEs isn’t capability, it’s complexity. Legacy compliance and supplier assurance processes are slowing down some of our most agile businesses at precisely the moment UK defence needs to move faster. The Make UK Defence report rightly points to standardisation and collaboration as the way forward. If we’re serious about UK growth, and serious about defence, we have to make it genuinely possible for SMEs to play their part, quickly, and at scale,” says Paul Huggett, UK Managing Director, Hellios Information.
SMEs first step: A practical first step into defence
Registering with an existing supplier assurance platform increases visibility to buyers and indicates a willingness to do business within the sector. As such, aligning with these frameworks can represent a practical first step in the defence market. As the report outlines, these approaches help businesses build confidence, demonstrate capability and begin developing the long-term relationships that underpin the defence sector.
These platforms – and the environment of collaboration on which they are built – offer greater clarity on what is required to succeed, with SMEs able to strengthen their own policies and controls in line with what larger organisations require. The report highlights that collaborative approaches across industry are helping to improve access and transparency within defence supply chains.
The Make UK Defence and Lloyds report itself reflects a broader effort across industry to create a more joined-up and accessible defence ecosystem.
A growing opportunity for SMEs
As the report highlights, the UK government is keen to support SMEs to play a greater role in strengthening the UK’s defence capability. While entering the sector requires a shift in approach, particularly around compliance and long-term planning, the report makes clear that with the right preparation, guidance and support, SMEs are well positioned to access new opportunities and contribute to a more resilient defence supply chain.
Read other recent UK Manufacturing news: https://uk-manufacturing-online.co.uk/category/news/
