Welsh businesses, universities and colleges can now access new opportunities in the growing defence sector through Wales Regional Defence and Security Cluster, which was launched today (9 March 2026).
The cluster brings together organisations, from small businesses to global prime contractors, to strengthen Wales's defence supply chain, develop new technologies, and create skilled, well-paid jobs. Wales's combined defence and aerospace sector directly employs 16,000 people, turnover of £3.7 billion and contributes approximately £1.5 billion in gross value added (GVA) to the Welsh economy.
The launch follows the signing of the Wales Defence Growth Deal Memorandum of Understanding, which allocates £50 million to Wales from a £250 million UK-wide investment in regional defence growth. The UK government has committed to increasing defence spending to 2.6% of GDP by 2027–28, rising to 5% of GDP on national security by 2035, creating significant new opportunities for Welsh businesses.
The cluster will help Welsh companies, particularly smaller businesses, access Ministry of Defence contracts, develop their supply chains, and grow their share of defence spending. Wales currently receives around 3% of total MOD expenditure. The aim is to increase this to 5% or more as overall UK defence spending rises.
The cluster is industry-led, chaired by representatives from Airbus Defence and Space and Thales, and supported by Welsh Government and the MoD. It connects businesses with Wales's eight universities and further education colleges, which carry out world-class research in areas including cyber security, opto-electronics and artificial intelligence.
For further information please select the following link: New group to bring together organisations in Wales’ growing defence sector | GOV.WALES.
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