Associate feature: From satellites to shipyards: realising the opportunity in Scotland’s industrial base

From spaceports to shipyards, cyber centres to composites, Scotland’s aerospace, defence, security and space sectors form the bedrock of Scotland’s sophisticated industrial base. Generating over £9 billion in annual turnover, Scotland is a hub of innovation, delivering 37,000 well-paid, highly-skilled jobs across the country. However, while ADS’ four sectors already punch well above their weight, without the right policy support from government, their full potential is yet to be realised.

Already, Scotland has defined itself as a global leader across all four industries. In space, Glasgow manufactures more small satellites than anywhere in Europe, while Edinburgh is prized to be a space data capital. Coupled with emerging vertical launch capability, we could soon see Scotland deliver end-to-end capability from design and manufacturing through to launch.

It is in defence that Scotland has a particularly rich history. Scottish-based capabilities are a cornerstone of the NATO alliance, with key bases playing a leading role in countering Russian aggression in the High North. Shipbuilding, high-end electronics, armoured vehicles and other capabilities make further vital contributions to national security.

Less well known, but equally important is Scotland’s aerospace sector, anchored in Prestwick and home to one of the UK’s largest hubs for Maintenance, Repair and Overhaul (MRO), aerostructures and design. And further, with significant expertise across the energy industry, Scotland is well placed to lead our own sectors’ transition to net zero, offering significant potential in sustainable aviation fuels and green hydrogen production.

Yet, while there is no denying that industry has all the right ingredients for significant further success, there remain critical barriers to growth, denting industry confidence and Scotland’s attractiveness as a place to do business – a recurring theme we regularly hear from our 160+ Scottish members.

While our sectors have bucked the national trend and delivered significant economic growth and productivity gains over the last decade, Scottish Government policy has not kept pace with evolving global instability. An ongoing presumption against public investment in munitions does not reflect the world we now live in, and risks leaving Scottish industry behind as allies step up to their responsibilities in the face of Russian aggression. Future success cannot be taken for granted and government and industry must work together to meet generational challenges.

Global threats aside, other key roadblocks need to be urgently addressed to secure Scotland’s advantage. While Scotland has scored some notable successes in relation to Foreign Direct Investment – which continues to eclipse that seen by the rest of the UK outside of London – it is also true that the Scottish economy has grown more slowly than the rest of the UK over the last decade. Anaemic statistics overall underline an urgent need for the next Scottish Government to better leverage our sectors’ proven growth-enabling potential.

The most urgent priority, however, must be addressing the skills crisis. Despite industry employing over 1,800 apprentices in Scotland, current pathways are not keeping pace with the demand for digital, engineering and advanced manufacturing talent. The appetite is there to make Scotland an engineering powerhouse, but the number of apprenticeship starts remains lower than it was pre-Covid while the complexity of the skills landscape acts as a barrier in and of itself.  

Scotland’s advanced manufacturing sector is at a vital juncture. With the right strategic investments and government support, it has the potential to drive national economic growth and prosperity, deliver thousands of jobs to every region and secure Scotland’s global reputation for engineering excellence. By committing to a plan that puts industry and skills first – Scotland can cement its proud history of innovation while accommodating and thriving in the challenges of the future.

This article is sponsored by ADS Group. 

www.adsgroup.org.uk