Emma Little Pengelly: ​Northern Ireland firms are vital to the UK defence sector – now is the time to realise our full potential

It is an unfortunate reality that we live at a time of great global instability, with hostile actors active in cyber-attacks, hybrid warfare and military conflicts in many regions across the globe.

We are living through the most dangerous period since the cold war, and national governments need to respond by building and investing in defence.

That is why the launch of the £50m Northern Ireland Defence Growth Deal is so significant. This is one of five UK Defence Growth Deals, backed by a UK-wide £250m fund.

Northern Ireland’s aerospace, defence, security and space sectors are built on a legacy that spans more than a century.

From the pioneering aircraft production of Shorts to today’s globally competitive aerostructures and interiors capabilities, this heritage of innovation continues to underpin critical UK capability and position the region as a strategic contributor to national defence and industrial strength.

That legacy is matched by strong recent performance. Sector turnover has more than doubled over the past decade, rising from £1 billion in 2013 to £2.2 billion in 2023, surpassing their ambitious £2 billion target.

This sustained growth reflects not only resilience, but a clear signal of our competitiveness and its capacity to play a larger role in both UK and global defence markets.

The economic impact is substantial. Employing over 9,000 people, these sectors provide highly skilled, well paid jobs. This is a cornerstone of regional prosperity, supporting communities while reinforcing a pipeline of technical expertise critical to future growth. That is why I have sought to promote our capabilities when supporting the work of the sector, meeting dignitaries from elsewhere in the world or when representing Northern Ireland at the Farnborough International Airshow.

Northern Ireland is home to a cluster of globally-competitive firms, including Boeing, Airbus, Thales, Collins Aerospace, Moyola Precision and Denroy Plastics, supported by an extensive supply chain of high-performing SMEs.

We are internationally recognised for our aerospace excellence – one in three aircraft seats used worldwide is manufactured here – and it is home to the award-winning Airbus A220 all-composite wing.

A defining strength lies in our deeply embedded, world-class supply chain, which feeds into major civil and defence programmes across global markets.

At the same time, defence activity continues to accelerate, with production expanding in response to major UK contracts. This blend of civil aerospace excellence and growing defence capability highlights a uniquely balanced and adaptable industrial base.

Despite these strengths, there remains untapped potential. Ministry of Defence expenditure per head in Northern Ireland remains among the lowest across UK regions.

In this context, the UK government’s commitment through the Defence Growth Deal is both timely and significant. It sends a strong signal to industry and investors, affirming confidence in Northern Ireland’s capabilities and its role in delivering UK defence objectives.

The Northern Ireland Defence Growth Deal must now act as the vehicle to translate this intent into tangible outcomes. By strengthening local supply chains, accelerating innovation, and investing in skills, it can position regional firms to compete more effectively as procurement reform gathers pace.

The growth deal is underpinned by collaboration between government, industry, academia and skills bodies, and the next phase will focus on translating this shared ambition into clear, deliverable propositions.

Ongoing engagement with Ministry of Defence, the Northern Ireland Office, the Department for Business and Trade and the ADS Group has also ensured structured and meaningful industry input. This has led to the development of formal recommendations to the Northern Ireland Office, Invest NI and the Ministry of Defence, helping to shape the deal in a way that reflects both market opportunity and industry expertise.

Alongside its aerospace and defence strengths, Northern Ireland has also emerged as a globally-recognised cybersecurity hub.

With a cluster of over 120 firms, the region has developed a strong ecosystem that supports advanced research and industrial collaboration adding a critical dimension to the broader defence and security landscape.

Taken together, these strengths - heritage, performance, industrial capability and partnership - position Northern Ireland as a vital and growing contributor to the UK’s defence, aerospace and security future.

The opportunity now is to fully realise that potential through coordinated investment, strategic alignment and sustained collaboration.

Emma Little-Pengelly, deputy first minister