The UK government has published a major policy document setting out the full economic and industrial scale of the country’s Defence Nuclear Enterprise (DNE), signalling significant long-term opportunities for businesses across the supply chain.
Titled A National Endeavour, the publication confirms that the DNE currently supports over 47,000 jobs across the UK – a figure expected to rise to 65,000 by 2030 – and is backed by a supply chain of more than 6,000 UK-based companies. Total spend through UK suppliers is projected to exceed £100bn over the next decade.
A Clear Demand Signal for Industry
The document is notable for the certainty it offers to industry. The government’s so-called “triple lock” – guaranteeing the build of four Dreadnought submarines, the maintenance of the UK’s nuclear deterrent, and delivery of all future upgrades – provides a long-term pipeline that procurement professionals and supply chain businesses can plan against.
Direct DNE spend with industry partners reached over £9bn in FY24/25 alone, with more than £6bn committed over this Parliament to deliver continuous submarine production, targeting a build rate of one submarine every 18 months.
Where the Opportunities Lie
For supply chain businesses, the publication identifies several key areas of demand:
Submarine construction and through-life support. BAE Systems in Barrow remains the UK’s sole submarine build site, with 13,500 personnel and ongoing programmes including the Dreadnought Class and the future SSN-AUKUS attack submarine. Babcock’s Devonport Royal Dockyard handles deep maintenance, refuelling and through-life support for 8,000 personnel, while Rosyth continues submarine dismantling operations.
Nuclear propulsion. Rolls-Royce Submarines in Derby is the primary site for reactor core construction and development, employing 4,000 people. A new Glasgow base is also supporting next-generation propulsion technology.
Warhead capability. AWE’s sites employ 9,000 people across the design, manufacture, maintenance and disposal of nuclear warheads. A new Future Materials Campus at Aldermaston is among the major infrastructure investments under way.
Forgings and specialist manufacturing. Sheffield Forgemasters is receiving £425m in additional Ministry of Defence investment – bringing total MoD investment to £1.3bn – to increase capacity and productivity. A new 13,000-tonne heavy forge and 30,000sq m machine hall are planned, securing over 700 jobs and creating new supplier opportunities in specialist steels and castings.
AUKUS Adds an Export Dimension
The trilateral AUKUS agreement materially expands the opportunity set for UK companies. Australia has committed £2.4bn over 10 years into the UK’s submarine industrial base, and the programme is expected to generate billions of pounds in exports through increased demand from Australian orders. A recent supply chain conference hosted by the Australian High Commission brought hundreds of organisations together to help identify routes into the programme.
Skills: The Critical Constraint
The publication is candid about workforce being the key challenge to delivering this ambition. In 2024/25, 778 graduates and 1,675 apprentices joined defence nuclear organisations – increases of 27% and 20% respectively – but the government has set a target of 22,000 apprenticeships and 9,000 graduate roles by 2034/35.
Regional Skills Hubs are now active in the South West, Midlands, North West and Scotland, and dedicated nuclear skills academies have been established by BAE Systems (Barrow), Babcock (Plymouth) and Rolls-Royce (Derby). The DNE’s wage premium of 20% above comparable roles reflects both the specialist nature of the work and the competition for talent.
For businesses considering entry into the sector, workforce capability – alongside nuclear qualification – remains the principal barrier and the most important investment to make early.
Getting Into the Supply Chain
The government has acknowledged that entry barriers into the defence nuclear supply chain remain a challenge, particularly around nuclear qualification requirements. The Submarine Enterprise Supplier Development Programme is actively supporting companies to improve performance and achieve the standards needed to access contracts.
Businesses seeking to engage are encouraged to monitor supply chain conferences – several have been held in recent months across the UK – and to engage with the relevant Regional Skills Hub and prime contractors directly.
The full publication is available at gov.uk.
