Wales has a big role to play as global investment in aerospace and defence increases
As seen in Wales Business Insider Vol.22 No.4 Aug/Sept 2026
Prepared for take-off
On a flat area of coastal land in the south of Gwynedd, you will occasionally see a rocket or balloon shoot up into the heavens. This is Snowdonia Space Centre, near Llanbedr – Wales's gateway to the stars. The centre provides rocket engine test facilities, mission control, a space laboratory with thermal vacuum chamber, and a structural test frame. It is popular with universities offering space engineering courses.
On the same site is Snowdonia Aerospace Centre, which provides testing facilities for drones and electric aircraft. This has attracted increasing interest in recent years due to the rise in popularity of drones and new aviation technology.
Jeremy Howitt, technical director of the aerospace centre, says: “In aerospace, the next two years will be very much focused on supporting the Defence Growth Deal for Wales and helping to position Wales as the sovereign hub for autonomous systems testing, training, trials and evaluation. Regarding space, we are continuing to develop the near-space testing capabilities at the space centre and are looking forward to hosting novel trials developing next-generation winged-launch, controlled recovery and microgravity testing vehicles. Wales perhaps doesn’t instantly jump to mind when talking about aerospace and defence, but these are areas of rapid growth for the country. There are so many Welsh companies making incredible contributions.”
Welsh expertise includes advanced materials; earth observation; launch; optics and photonics; and communications.
“We have the ideal environment suited for aerospace operations, advanced optical tracking and telemetry – as well as 7,100 square kilometres of segregated airspace,” says Howitt. Near the road from Caerphilly to Nantgarw, GE Aerospace runs one of Europe’s largest maintenance, repair and overhaul centres for commercial aircraft engines. A team of about 1,450 work on the CFM56 engine, which powers aircraft including the Airbus A320 and Boeing 737; and the GE90, for the Boeing 777. The site is also expected to support the GE9X engine – the thrust behind the new Boeing 777X.
In recent years, GE has changed the way it works through its Flight Deck lean operating model.
Steve Edwards, site leader and managing director of GE Aerospace Wales, says:
“This approach helps teams set clear daily priorities, identify and escalate issues quickly, solve problems more effectively, and improve flow across the site to reduce bottlenecks and improve responsiveness. At the same time, the business is continuing to evolve through the use of more advanced digital tools and technologies, including AI [artificial intelligence]-enabled capabilities in selected operational areas. We see these tools as a way to support skilled teams, improve consistency and strengthen performance, rather than replace human expertise. The opportunity is about combining the expertise of highly skilled people with the benefits of new technology. Used in the right way, that can help strengthen safety, quality, delivery and productivity, while also supporting the next generation of aerospace talent. One of Wales’s greatest strengths is the breadth of its aerospace ecosystem. It brings together major manufacturers, supply chain businesses, public sector partners, colleges and training providers.”
Across the industry, Edwards sees growing interest in hybrid electric technologies, open-fan architectures and alternative fuels, alongside the increasing use of advanced digital tools in operations.
“One of Wales’s greatest strengths is the breadth of its aerospace ecosystem,” he says. “It brings together major manufacturers, supply chain businesses, public sector partners, colleges and training providers, all of which contribute to a strong and well-connected industrial base.”
The country also has a deep pool of skills, experience and engineering heritage, which creates opportunities for businesses to grow and for people building careers in the sector. GE taps into this through its relationship with Coleg y Cymoedd and the apprenticeship programme.
Newport company Metrology Engineering Services (MES) provides services to the aerospace industry including laser scanning, reverse engineering, damage assessment and structural reporting. It has also secured work in sectors including rail, marine, energy, infrastructure and construction. MES’s activities have enabled the company to capture a lot of data. Chief executive Stephen Beasley says this could lead MES to secure asset management work.
“We are talking to a number of clients on how we can leverage the data,” he says.
Beasley, who also works as an ambassador for industry group Aerospace Wales, adds: “Fully backed by the Welsh Government, Wales is very well-positioned to continue its innovative and agile approach to industry and business. Wales has a rich tapestry of airfields, test facilities and key strategic military sites all within its borders. The companies that grow around these sites have become centres of excellence.”
Defence businesses from Wales will meet their international peers in September at Defence Security Resilience Cymru, a supply chain gathering at ICC Wales, near Newport. The event is expected to attract more than 2,000 guests and 60 exhibitors.
Founder Phil Jones says: “Wales has world-class manufacturers, a highly skilled workforce, leading research institutions and expertise in areas such as aviation, cybersecurity, advanced manufacturing and compound semiconductors. These strengths make Wales an important contributor to UK defence capability and innovation.” Aerospace and defence employs 16,000 people at about 285 companies in Wales including Airbus and GE, according to CBI Wales director Russell Greenslade.
He says: “Wales combines a proud industrial and military heritage with cutting-edge capability in advanced manufacturing, maintenance, engineering and emerging technology such as cybersecurity. Aerospace and defence have a key part to play in the CBI’s ambition for Wales to become one of Europe’s most competitive and sustainable small economies by 2035.”
Greenslade reckons a Welsh industrial strategy, aligned with the UK’s Modern Industrial Strategy, would bring together decisions on skills, innovation, infrastructure, energy and access to finance around a clear set of long-term priorities. He adds: “All the ingredients are present – innovation, talent, natural assets and social solidarity. “The task is to bring them together under a single purpose: to build a better Wales through partnership between business and the [Welsh] and UK governments.” Jones says: “Strengthening links between Welsh businesses and major defence contractors will help unlock further growth, create high-value jobs and attract additional investment into the sector.”
Aerospace Wales and some individuals within the Welsh Government work hard to support the country’s aerospace and defence sectors, according to Beasley.
“We are looking forward to hosting trials developing next-generation winged-launch, controlled recovery and microgravity testing vehicles,” says Howitt. “Further funding is critical to ensuring more companies brought into the ecosystem grow and thrive.”
Partnership will be key, says Edwards: “Continued collaboration across industry, government, education and the wider supply chain can help Wales build on its existing strengths and connect more closely with the rest of the UK and globally.
“There is also value in ensuring strong alignment between devolved and UK-wide priorities so that investment, skills development and industrial strategy work together to support long-term growth in the sector.” Howitt adds: “The Welsh aerospace sector is already making great strides in terms of capabilities and R&D. By 2030, the UK space sector has set a target of achieving a 10 per cent share of the predicted £400bn per annum space market. If Wales can reach a 5 per cent share of this, it would equate to £2bn per year. Wales has the talent, the infrastructure and the innovation. The right investment and nurturing will enable this.”
Is the aerospace and defence market growing,
shrinking or staying about the same?
■ Russell Greenslade, CBI Wales: “We live in a precarious world where our peace and security is being tested. Enhancing our national security is vital. However, growth in the aerospace and defence markets should not be taken for granted. Businesses need long-term certainty, reforms to procurement and contracting, improvements to the global competitiveness of UK defence firms through export support and contracting, and the mobilising of public sector investment to unlock financing models. New finance can help ensure a resilient defence supply chain.”
■ Peter Dickinson, Spectrum Technologies: “The world has become a much more volatile place in the last few years. This requires all companies to be agile and responsive and to prepare for changes in the geopolitical landscape and global economies. However, an advantage of the aerospace
sector is its resilience to short-term shocks. Our company is in a sound financial position,
being debt free, and has developed plans to manage any future shocks that may occur.”
■ Phil Jones, Defence Security Resilience Cymru: “The market is growing strongly, driven by increased defence spending, geopolitical uncertainty, and demand for emerging technologies such as cyber- security, AI, autonomous systems and advanced manufacturing. Let’s not forget the supporting services that can benefit and contribute, for example cleaning companies, catering companies, security and consultancy.”
■ Stephen Beasley, Metrology Engineering Services: “We only see growth in this sector. The pace and size of new orders is increasingly outweighing the capability of skillsets to deliver. Technology and smart forward-thinking companies with niche skillsets will be in demand.”
■ Steve Edwards, GE Aerospace Wales: “From the perspective of the Wales site,
which is focused on the commercial aerospace market, we see strong long-term demand. Airlines continue to require maintenance and service support, and there remains a significant pipeline of engine work still to come into the global overhaul network. More broadly, across aerospace and defence, demand is being shaped by the long-term need for fleet support, operational readiness, efficiency and technology development.”
■ Jeremy Howitt, Snowdonia Aerospace Centre: “Aerospace and defence capabilities are becoming more important than ever as defence forces rely on ever-more advanced technology. There is a requirement to develop home-grown technology, rather than depending on other nations.