Statement by the Ian Godden, Chief Executive of SBAC

06:12 GMT, August 31, 2009 As the opening statement for the Editorial Focus “UK Defence Industry Exports” at defpro.com, on the occasion of the DSEi conference and exhibition, we are pleased to present an exclusive statement of Ian Godden, Chief Executive of the Society of British Aerospace Companies (SBAC).


Ian Godden:

Over recent years the UK has achieved a 20 per cent global share of defence exports, culminating in 2007 where it was the number one exporter ahead of the US, commanding a 33 per cent market share - £10 billion of which was attributed to new business. Not so bad for a country that only boasts 1 per cent of the world’s population. Such a position is no anomaly, for the UK has historically been strong in both defence and its capability to produce innovative equipment for the home and overseas markets.

The main reason for success of course is the UK’s continued ability to design, manufacture and service competitive and high performing equipment and the generations of investment in Research and Technology, sponsored by Government support in previous decades. But an equally important part is due to the openness of the UK government which, with its open competition for defence contracts, has encouraged industry not to become complacent and rely upon the surety of domestic contracts. As a result, the UK defence industry has honed further its ability to create bespoke equipment in direct competition with the international market. It is therefore no surprise to note that in proportion to the US and other European states, a greater proportion of the UK defence industry’s turnover comes from international exports rather than sales to the Government.

A direct result of the UK’s openness has been the creation of an attractive environment for the global industry in which to invest and set up. This goes some way to explaining why, according to Deloitte, 19 out of the top 20 defence companies have decided to have a presence in the UK. Whether through setting up new and innovative sites, such as PFW Aerospace in Nuneaton, or the acquisition of traditional UK companies, like Finmeccanica with AgustaWestland, the UK has managed to attract some of the world’s leading companies to its shores, all of which have contributed in some way to the nation’s export success.

Another contributing factor to the export success of the UK markets must be the size and diversity of the supply chains. With more small and medium sized enterprises (SMEs) in defence than France, Germany. Spain, Italy and Norway combined, the opportunities and the increasingly global nature of the defence industry, UK expertise and skills in advanced manufacturing have never been in more demand. Maintaining lean and efficient supply chains is a clear must for a successful advanced manufacturing industry, and through the Supply Chains for the 21st Century initiative which was set up in 2006 by industry and the Society of British Aerospace Companies (SBAC), the UK is striding forward with a modernisation programme that is already attracting interest from nations such as Canada and Australia.

Success on such a vast scale in the export market, particularly in defence, in part can only be achieved with the support of a competent governmental body which extols the benefits of buying British based goods. UK Trade and Investment Defence & Security Organisation (UKTI DSO), which was formerly known as DESO, provides this admirable service for companies ranging from the primes to the some of the smallest companies, through a variety of methods such as trade missions and shows.

The two main UK defence trade associations, SBAC and the Defence Manufacturers Association (DMA), soon to be merged to create a stronger body representing UK’s aerospace, defence and security industries, also play a large part in this process of overseas promotion in close coordination with UKTI DSO. Both organisations have dedicated services provided for its members such as inward and outward missions as well as the usual business to business and trade exhibition events, like DSEi. Frequently these are carried out in conjunction with UKTI DSO, but also much of the time they are directed by their members’ interest, such as the recent establishment of an advanced engineering office in Bangalore, India to compliment the Delhi representatives already on the ground. This office is designed to act as a one stop shop for both UK and Indian industry, and will aid in the fostering of closer relations between these two nations’ industrial sectors. The newly merged association has proven track records in the majority of the world’s leading and rising defence markets, as in addition to Europe, collectively the DMA and SBAC have close ties with the USA, Canada, Japan, India, Middle East, Malaysia and Mexico.

Combining the experience and range of both the SBAC and DMA will give UK plc greater global coverage, which will aid the members in reaching their potential in the export markets. Add to this the world’s largest airshow in Farnborough (run by Farnborough International, a wholly owned subsidiary), the support of UKTI DSO and a favourable business development market, and assuming that future Governments support this highly attractive, world competitive UK industry, one can see that the UK is ready to maintain and expand on its position as the number one exporter of defence equipment in Europe.


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Ian Godden, Chief Executive of SBAC, is an experienced businessman who has worked in the USA and Europe as an engineer, management consultant and entrepreneur. For the last 20 years he has been heavily involved in the international aviation, aerospace and defence industry on a wide range of strategic affairs, having consulted for many of the major US and European corporations.
Mr Godden has held leadership roles in strategy consulting, including UK Managing Partner of Booz Allen and Hamilton and a member of its worldwide aerospace and defence practice. He was also UK Managing Partner of Roland Berger, the Munich-based European Strategy Consultancy, and a Senior Adviser to the Parthenon Group, the Boston-based strategy consultancy.
During the 1990s Mr Godden worked for the UK, US, South African, Dutch and German Governments on various aspects of their defence policies. Additionally in his career to date he has held a number of non-executive board positions the most recent being with Havelock Europa Plc, E2V Technology Plc and Glenmore Energy Inc.