With billions of pounds flowing through the defence sector, a growing regional defence network and renewed investment in British manufacturing, the West Midlands has an opportunity to strengthen its position within one of the country’s most strategically important industries. But can its smaller manufacturers turn that opportunity into meaningful business?
For generations, the West Midlands has been synonymous with British manufacturing.
From the automotive production lines of Coventry to the engineering workshops of the Black Country, the region has developed an industrial ecosystem built around precision manufacturing, advanced materials and technical expertise.
Those capabilities could prove increasingly valuable as the UK seeks to strengthen its domestic defence industry.
But while major defence contractors attract headlines and government investment, an important question is emerging: can the region’s smaller manufacturers secure a meaningful share of the opportunities being created?
A region already contributing billions
The West Midlands already plays an important role in Britain’s defence and security economy.
According to the West Midlands Combined Authority, the sector supports approximately 23,500 jobs across the region, with annual Ministry of Defence industry expenditure of around £1.7 billion.
In May 2026, the region launched its Regional Defence and Security Cluster, bringing together businesses, universities, government organisations and the Armed Forces to strengthen collaboration and support innovation.
The initiative reflects growing recognition that defence manufacturing extends far beyond major contractors.
Modern defence programmes rely on extensive supply chains involving engineering, electronics, advanced materials, software, logistics and specialist professional services.
Many of these capabilities already exist across the West Midlands.
From manufacturing expertise to defence contracts
The Black Country has a long history of precision machining, metalworking and fabrication, while Coventry and Warwickshire possess extensive expertise in automotive engineering and advanced manufacturing.
These capabilities are highly relevant to defence, but possessing the technical expertise does not automatically translate into securing contracts.
Defence procurement can involve demanding quality standards, security requirements, complex purchasing processes and lengthy supplier approval procedures.
For smaller businesses, understanding how to enter the market can be as challenging as delivering the work itself.
Many opportunities also sit within the supply chains of major defence contractors rather than through direct Ministry of Defence contracts.
Bridging the gap between capable regional manufacturers and defence procurement opportunities will be critical if the West Midlands is to capitalise on increased investment.
Connecting businesses with opportunities
Initiatives such as the Defence Procurement Conference are helping address this challenge by bringing together businesses, procurement specialists, defence organisations and industry leaders.
The 2026 conference attracted 1,500+ attendees from across the supply chain, demonstrating the level of interest in defence procurement and supply-chain opportunities.
The event returns to Edgbaston Stadium in Birmingham on 16 and 17 June 2027, with a two-day programme focused on helping businesses enter, navigate and grow within the defence sector.
Day one, Getting In & Moving Up, will explore opportunities for businesses looking to access defence supply chains, while day two, Winning, Growing & Innovating, will focus on securing contracts, scaling operations and developing new capabilities.
For SMEs unfamiliar with defence procurement, opportunities to engage directly with industry representatives, understand supplier requirements and develop commercial relationships could prove particularly valuable.
However, conferences and networking initiatives are only part of the solution. Turning those connections into contracts requires sustained engagement, investment and the ability to meet demanding procurement standards.
Investment is creating new possibilities
Recent developments demonstrate the continuing importance of domestic defence manufacturing.
In October 2026, Rheinmetall UK began production at its new gun hall in Telford, returning large-calibre weapon manufacturing to British soil after approximately two decades.
The facility supports around 100 highly skilled jobs and produces components for 120mm and 155mm weapon systems.
Although Telford sits outside the West Midlands Combined Authority area, it forms part of the wider regional industrial economy.
Investment of this kind could create opportunities for businesses providing specialist components, machinery, maintenance, logistics and technical services.
However, the economic benefits will depend on whether regional suppliers can successfully compete for the work.
The skills challenge
Expanding defence manufacturing will also require a skilled workforce.
Precision engineers, machinists, welders, electronics specialists and software developers are already important across manufacturing, automotive, aerospace and energy.
Growing defence demand could intensify competition for these skills.
Employers, colleges and universities will therefore need to consider whether existing training provision, apprenticeships and workforce development programmes can support future industry requirements.
For smaller manufacturers, investing in specialist skills before securing contracts can represent a significant commercial risk.
Turning potential into prosperity
The West Midlands has many of the foundations needed to become a leading centre for British defence manufacturing.
Its industrial heritage, established engineering businesses, research institutions and growing defence networks provide genuine advantages.
But becoming a national powerhouse requires more than investment announcements and ambitious strategies.
Businesses must be able to identify opportunities, meet procurement requirements and establish relationships with the organisations awarding contracts.
Regional initiatives, including the Defence Procurement Conference, can help connect businesses with the wider industry, but long-term success will ultimately be measured in contracts secured, jobs created and investment retained.
The West Midlands already has the manufacturing capability. The challenge now is turning that capability into commercial opportunity.
