The market environment
Military spending globally is at record levels, having risen to $1.74 trillion in 2017. In the UK, the MoD spend for 2017/2018 was £36.6 billion, with an additional £1 billion promised in the 2018 Autumn budget. The committed spend over the next 10 years is almost £180 billion, £44 billion of which is on submarines, principally Dreadnought and £19 billion on ships, including the Type 26 Frigate.
CSC has long-term contracts to supply bespoke products and services for the key submarine build programmes and for surface vessels such as the Type 26 Frigate. Its status as the leading global supplier of high pressure gas storage solutions to NATO member states and NATO-friendly nations remains stronger than ever, underpinned by the growing importance of Chesterfield Integrity Management (CSC IM), which is the principle provider of inspection and testing services to the MoD for ongoing cylinder performance and safety management on the Astute, Vanguard and Trafalgar classes of nuclear submarines.
CSC IM’s five year strategy to develop a long-term defence sector order book through its German office continues to secure contracts with a growing number of navies around the world.
The current defence spend is being driven by the need to update aging warcraft and pressure from the US for NATO allies to increase defence spending.