Jeremy Berwick
Expert in Aerospace, Defence and Security, PA Consulting
The defence industry must evolve to become more agile and resilient if it’s to meet the operational needs of the next decade in an increasingly complex and turbulent world.
Companies in the UK defence sector are operating in an increasingly complex, financially constrained, and uncertain geopolitical landscape.
Macro and micro defence challenges
When it comes to addressing challenges, the industry must consider both the macro picture and the micro picture, says Jeremy Berwick, expert in aerospace, defence and security at PA Consulting, the global innovation consultancy.
“On the macro side, there are challenges that our defence industry clients have very little control over, such as the war in Ukraine,” he notes. “Another example would be when there’s a lack of funding certainty from government, which means that any capital investment that defence companies make comes with more risks attached.”
Importance of agility and resilience
The micro picture, on the other hand, includes challenges which the industry can control. Responding to these effectively requires agility and resilience, says Berwick. Take the issue of organisations closing their skills gaps by developing and retaining the best people. “The defence industry has a workforce that is ageing and retiring,” he explains. “So, the sector must be made relevant and exciting to attract a younger generation.”
On this, Berwick advocates alternate approaches to attracting talent to the defence industry such as taking an aptitude-based approach to recruitment — which prioritises problem-solving, collaboration, cultural fit and soft skills over formal technical expertise and qualifications. To attract and retain talent, firms should also make their work environments more modernised, with collaborative ways of working, flatter team structures, proactive coaching and mentoring.
Technology is a critical enabler
for people and higher productivity.
Efficiencies through better use of technology
Plus, ways of working need to modernise to increase industrial throughput. “Technology is a critical enabler for people and higher productivity,” says Berwick. “It gives workers the space to be truly productive and fulfil their roles in a more meaningful way.”
Increased adoption of digital tools, including artificial intelligence and data analytics, is becoming crucial for advancing engineering and manufacturing processes. “Digital tooling isn’t yet fully integrated across every aspect of most companies,” notes Berwick. “However, there’s reason for optimism, particularly within engineering.”
For instance, ‘digital threads’ can create a seamless data flow across a product’s lifecycle, from design to deployment. They let companies use virtual simulations to reduce costly rework, speed up testing and accelerate production. Expanding digital threads to include all areas — like support and training — boosts productivity, streamlines workflows and improves teamwork.
Importing expertise from other sectors
Berwick highlights the potential for the defence industry to draw valuable insights from other sectors. “The automotive industry, for example, has long been regarded as a benchmark of manufacturing operational excellence,” he says. “As automotive manufacturing becomes increasingly automated and software-driven — requiring fewer hands-on personnel — there is a unique opportunity to bring this deep operational expertise into the defence industry. Using techniques from automotive engine manufacturing, for instance, could significantly reduce build times and improve efficiency in defence production.”
With greater collaboration, the aerospace, defence and security industries can build a safer future. “However, this requires fundamental building blocks to be in place,” says Berwick. “There has to be clarity of defence priorities, policy and funding; a long-term demand signal; and a clear set of commercial incentives on both sides of government and industry.”
While these challenges will not be solved overnight, Berwick is optimistic about the industry’s future and PA Consulting’s role in accelerating its transformation. “From using digital threads and advanced manufacturing techniques to attracting and retaining top talent, there are huge opportunities for the defence industry to innovate and achieve tangible results.”
