In recent announcements and interviews, the UK government's message has been clear: the world has changed, and so must the UK's defence strategy. As the sector transforms, so has the world of work around it.
Amid the backdrop of conflicts around the world and talk of increased NATO defence spending, the UK government is unveiling a strategic defence review with wide-ranging measures planned, including new attack submarines, investment in technology, and better housing for armed forces.
Supported by additional government funding, the plan aims to raise defence spending to 2.5% of GDP by 2027-28, with aspirations of reaching 3% in the next parliament. The new UK Defence Investment Plan goes further still, setting out a 50% increase in spend over the next decade. Concerns persist within government and throughout the defence sector on how this transformative shift should take place.
However, any plans are also at risk from a UK STEM (science, technology, engineering, and mathematics) skills shortage that doesn't appear to be resolving itself. This is no longer just an engineering problem. Aerospace, maritime, and defence is transforming from a traditional heavy manufacturing industry into a tech, AI and data driven sector, and the scarcest skills now sit across both engineering and digital.
The UK's defence sector faces a potential setback in comparison to other nations due to a shortage of STEM talent, according to our recent research report, written in collaboration with Defence Online.
The report, titled "Delivering the Defence Workforce of the Future," reveals that 83% of key decision-makers fear technological lag due to a lack of skills, while 77% are concerned about a decline in defence capabilities and 72% worry about economic growth.
Engineering skills are notably scarce, with 48% of defence employers reporting a shortage, alongside deficiencies in cyber & digital (33%) and manufacturing & mechanical (25%) skills. Digital engineering skills are also emerging faster than legacy sourcing models can support, which is why mission critical roles now sit open for months even where budget is not the constraint.
The real cost of an unfilled defence role isn't the vacancy
When mission critical roles sit open, the impact ripples well beyond the vacancy itself. Programmes slip and contractual penalty clauses activate. Growth plans stall, because new opportunities cannot credibly be bid for without access to security cleared, technical talent.
Costs rise through premium one-off hires with no supply chain optimisation behind them, while Statements of Work get misused as a workaround for permanent gaps, creating misclassified spend and compliance exposure. And behind it all, hiring teams are left firefighting an ever-growing supplier list with limited visibility or control. None of this is a talent shortage problem alone. It's a sourcing strategy problem.
Specialist workforce solutions in defence
While 50% of employers are engaging with educational institutions, Guidant Global warns that more immediate and innovative solutions are needed. Nat Jackson, Sales Director at Guidant Global, emphasised the urgency of addressing the STEM skills shortage to safeguard the defence sector's competitiveness, highlighting the need for both short-term and long-term strategies.
"Only 16% of respondents were collaborating with specialised STEM workforce providers," stated Nat. "This suggests there are overlooked opportunities to address immediate skill needs as well as in the long term. Most supply chains were built for tactical, high-volume hiring. They were never built to source the scarce AI, digital and security cleared engineering talent that defence programmes now depend on."
He emphasised the urgency of strategic action on this STEM skills shortage, stating that without prompt intervention, and a deliberate move from tactical hiring to a strategic talent pipeline, the defence sector risks falling behind.
"Guidant Global has demonstrated a commitment to working with partners to future-proof the sector and help employers overcome key people-related challenges," he continues. "This report justifies this commitment; it underscores the importance of balancing long-term solutions with immediate measures to maintain the sector's competitiveness amid global uncertainties.
Precision matters more than volume here. Organisations don't need hundreds of CVs; they need the right people, with the right skills and clearances, at the right time, alongside talent pools of their own so that future hires don't start from zero."
You can download the full research report, produced in collaboration with Defence Online "Delivering the Defence Workforce of the Future” here.
The new approaches to reducing skills shortages in the defence sector with Guidant Global
Trusted with over £230 million spend under management (SUM) in the Aerospace and Defence sector, Guidant Global manages clients' workforces and secures the best talent, from low-skill, high volume roles to niche-skilled engineering, technology, digital and business support roles.
There is no need to compromise or to rip and replace what already works. Our blended approach to defence workforce management keeps the best of your supply chain, building on it for mission critical, security cleared and digital roles, while giving you visibility and control of spend, suppliers and risk at the same time. For more information, get in touch with our team.
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