Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Accepted
Building defence industrial skills capacity faces challenges due to high global demand.
Conclusion
The MoD recognises that building capacity, including the industrial skills base, will take time, and that for industry to invest in this it must have confidence that the MoD’s demand will continue.46 For example, the MoD estimates that over the next 10 years industry probably needs an extra 10,000 or so apprentices, graduate engineers and other staff to deliver the MoD’s defence nuclear programme.47 The MoD is working with industry through the Defence Suppliers Forum to try to get more apprenticeships created, and with the higher education sector to attract more people with science, technology, engineering and mathematical qualifications into the defence industry.48 The MoD is also seeking to encourage industry to train enough skilled tradespeople, such as master welders, who then go on to teach the apprentices.49 However, the MoD said that the defence industry has struggled to attract suitable candidates because the skilled people it requires, such as engineers, are in high demand globally.50
Government Response Summary
The government agrees with the implied recommendation to build industrial capacity and skills, committing to provide a clearer signal to industry on future demand through the new Integrated Procurement Model and improved visibility of the acquisition pipeline by Spring 2025.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2025 4.2 The department agrees with the need to provide a clearer signal to industry on future demand. Greater transparency of the future pipeline is an important element of the new Integrated Procurement Model, building on earlier commitments in the Defence and Security Industrial Strategy (DSIS) and Defence Command Paper Refresh. 4.3 Since publication of the DSIS, the Defence Capability Framework, the Acquisition Pipeline, a number of sector specific strategies and most recently the Science and Technology Collaboration and Engagement Strategy all mark significant progress on this commitment and allow industry to plan ahead. 4.4 Under the Integrated Procurement Model, the department is continuing to improve visibility of long-term planning processes to inform industry’s future plans and investment. The department is forming a new alliance with industry, moving beyond the traditional customer-supplier relationship, developing long-term strategic alignment that not only delivers the capabilities required now, but binds the department and industry into a joint endeavour that can sustain the nation in times of conflict. 4.5 The department is also bringing industry into the fold much sooner, from the conception and development of ideas through to the final stages of delivery and are involving industry at all levels earlier in the military capability development processes. The department is working to ensure there is a collaborative technical environment, operating at secret levels of classification, to share information with industry in a much more dynamic way. 4.6 The department continues to publish the Acquisition Pipeline twice yearly, in April and October.