The Chancellor's commitment of an additional £2.2 billion for defence spending represents a substantial opportunity for the West Midlands manufacturing base.

That was the message from the corporate team at FBC Manby Bowdler, which works closely with manufacturers across the region.

Partner James Sage said the West Midlands had long been a powerhouse of defence manufacturing, supporting thousands of skilled jobs and contributing significantly to our national security.

“This increased investment should provide much-needed certainty for both prime contractors and the vital SMEs that form the backbone of the supply chain.

“However, the broader economic context, including projected lower growth forecasts and the anticipated £5 billion in public spending cuts, creates a complex operating environment for manufacturers.

“Our clients are looking for clarity on how the government's 'securonomics' approach will translate into tangible support for investment in skills, technology, and innovation within the sector.”

James said that many engineering businesses in the Black Country, who may have been focused on automotive work, could now be looking for diversification opportunities.

“While this could be a real driver for growth among SMEs, there is still a need to address pressing issues of energy costs, access to finance, and support for R&D if we're to maintain our competitive edge globally.

“At FBC Manby Bowdler, we're working closely with our manufacturing clients to help them navigate these challenging economic conditions while positioning themselves to capitalise on the opportunities this increased defence spending will bring to the Midlands industrial base."

https://www.fbcmb.co.uk/