Page 18 - Five Forces of Americanisation Richard Hooke 04072025 final post SDR1

The UK Defence Industry in the 21 Century
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The Five Forces of Americanisation

Implications for UK contractors
In 2005, much was uncertain but one issue was clear: the need to “maximise the value of the domestic
national market”. A number of attributes were cited: a clear view of potential business beyond the
order book; a baseline of steady business; source of development funding; insight into future military
requirements and operations; early warning of changes in military doctrine and the security
environment; credibility in export markets; channels to export markets through domestic
collaboration. These attributes were removed or destroyed by UK Defence Reform and so the US
market became of paramount interest instead.

A new relationship with government is now required and the mutual benefits are significant. That said,
the evidence of recurring reviews and reports suggest that this will be difficult to achieve. Developing
or maintaining a presence in certain targeted markets in an enlarged and enlarging EU as well as in
the US, is important, teaming with those well-placed both politically and technologically, even though
the partner of choice may not be a conventional defence contractor. Controlling or maintaining access
to that technology is critical. So three main issues for UK contractors are prominent:

1. Financing and locating the business
Maximising both financial and non-financial benefits of the home market … or markets.
2. Selecting the right partners and programmes
Maintaining a dialogue with government on foreign policy initiatives and participating in
developing and delivering export opportunities
3. Integrating, protecting and exploiting Intellectual Property
Maximising the value of Intellectual Property

Issues for the UK Government
The connected nature of defence, trade and diplomacy has become clear. This connection has been
reinforced by the use of Coercive Dealmaking, now seemingly in concert with military force, as a form
of power projection. This suggests that the UK government must act with consistency and with the
right professional or functional specialist support across departments. It seems unlikely, culture
change or not, that the MoD will be able to deliver One Defence alone
For the UK government, three challenges stand out :

1. Controlling Intellectual Property (“IP”)
i. Eliminating the cost and inefficiencies of US International Traffic in Arms Regulations (“ITAR”).
ii. Confirming an effective oversight regime to control and deploy as necessary the UK defence
and security technology/IP base
2. Sustaining an effective Defence Industrial Base (DIB)
i. Foresight and prevention – sustaining effective oversight and being proactive in taking steps
to anticipate, avoid or even exploit the opportunities for change provoked by potential
corporate failure
ii. Maintaining routine, informal and informed UK leadership dialogue at Cabinet and UK listed
company Chair and Chief Executive level
The current environment would provoke a full agenda, with the following issues to the fore,
for example:
▪ Governance and performance, including preserving national security and/or
competitiveness, eg: the use of proxy boards and/or special security agreements for
foreign firms operating in the UK

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07/07/2025 Richard Hooke 2025