Industrial Strategy
The Defence Industrial Strategy (DIS) sets out the anticipated order book (which includes two aircraft carriers, a number of Type 45 destroyers, and Astute-class submarines). It outlines what it considers to be the Key Capabilities which have need to be retained within the UK for strategic reasons; and discusses what will have to be defined and refined within the reconstituted Maritime Industrial Strategy, including the size and structure of the supplying industry.
Those key capabilities which are deemed essential to retain within the UK are:
- Maritime systems engineering - the ability to design, manage, support and upgrade complex surface warships;
- Shipbuilding and integration - minimum ability to build and integrate complex warships;
- Nuclear submarines - total life cycle, including Nuclear Steam Raising Plant;
- Maritime Combat systems - develop and integrate into platforms;
- Maritime Support - maintain and upgrade existing Royal Navy fleet;
- Maritime systems and technologies - research, development and integration.
The DIS specified what capabilities are needed; the revised Maritime Industrial Strategy will, in consultation with industry, define how that is to be achieved.
The DIS also refers to a Core Work Load, which is the minimum level of business considered sufficient to support a viable industry, allowing it to invest and train. This is generally assumed to be a larger volume of work than offered by the Key Capabilities.
At the same time, DIS leaves little doubt that MoD is not satisfied with the current performance of the UK naval shipbuilding industry, referring to weaknesses in delivery times and prices against contract and inadequate means of measuring progress.
DIS also makes clear that the industry needs to restructure and reduce in size to reflect longer-term demand patterns of one surface ship every one to two years and one submarine every two years, with longer times between classes.
BERR will be playing a full part in the evolution and implementation of the Maritime Industrial Strategy.
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