Engineering specialist BEP Surface Technologies is seeing a new wave of defence-related enquiries and RFQs for specialist grinding and hard chrome plating, highlighting vulnerabilities in the UK engineering supply chain as the government increases defence spending with SMEs.
Andrew McClusky (pictured), managing director of BEP Surface Technologies, says: “We’re seeing a marked increase in defence enquiries. Defence manufacturers need specialist capabilities, but the supplier base they have relied upon has reduced. Capacity cannot simply be recreated when demand suddenly increases.”
BEP’s experience echoes research it conducted earlier this year, which found that the number of independent electroplating businesses in the UK had fallen from 80 in 2015 to 67 in 2025 – a decline of more than 16%. At least seven of those remaining were already insolvent or winding down when the research was conducted.
“When we published that research, our concern was that the UK was steadily losing specialist surface engineering capacity,” explains McClusky. “The enquiries we’re now receiving from defence reinforce why that matters. Grinding, plating and other specialist processes may sit several tiers down a supply chain, but they can be critical to manufacturing, refurbishing and maintaining high-value components.”
McClusky believes increased defence expenditure represents a significant opportunity for British SMEs, but warns that scaling capacity will require investment in machinery and skills.
“For an SME, increasing capacity requires considerable investment before the work is delivered. You need equipment, people and technical expertise, but also confidence in the long-term pipeline to justify that investment. Greater visibility of future defence demand would allow businesses to make those decisions earlier.”
The MOD’s SME Action Plan, published in July 2026, aims to improve SME access to defence opportunities and increase supply-chain resilience. For 2027/28, the MOD is targeting £2bn in direct SME spend and £5.5bn indirectly through its supply chain.
“The opportunity for British manufacturing is significant,” concludes McClusky. “Success should be measured not simply by how much defence expenditure reaches SMEs, but by whether it leaves Britain with more engineering capability, skilled people and stronger domestic supply chains.”
More information www.bep-st.com
