Politics Home | Lockheed Martin’s investment in space in the UK will bring coveted jobs and economic growth

Lockheed Martin may have its roots in the US, but it has long maintained a deep commitment to the UK. The company has supported the UK since the Second World War and continues to invest, share expertise and make commitments to strengthen the country’s economic growth and national security. 

Bringing technology to space and economic benefit to the UK 

The space operating environment has changed enormously in recent years, making it imperative that new satellites can survive in what is now considered a contested domain. Lockheed Martin has unmatched experience developing and fielding space-based technologies needed to operate effectively and successfully in this domain, and this knowledge will play a vital role in helping counter the ever-increasing threats from sophisticated adversaries. 

A number of projects across the UK are already about to benefit from Lockheed Martin’s exceptional experience, knowledge and expertise, which, as well as benefiting national security, will also bring a whole host of economic opportunities. 

Lockheed Martin is looking at opportunities for investment of what could be more than £100m in the North East space sector. Combined with broader satellite manufacturing activity, this is expected to deliver about £1.2bn* in GVA (gross value added) over 20 years and support roughly 500 high-skill jobs a year for the region. 

With other space-related activities, this could generate approximately £3.7bn* in total GVA for the UK and around 2,000 jobs. It would create access to a $15bn set of global programmes and export markets for British workers and businesses, build resilience in UK sovereign supply chains and skills base, and facilitate the entry of market-adjacent companies into space and defence. 

That £100m North East investment includes the possible creation of an £85m satellite manufacturing facility in County Durham, based on a newly developed phase of the NETPark estate. This leading UK science park at Sedgefield near Durham is already home to a number of fast-growing businesses within the sector, and the creation of phase three of the park would see the building of a space manufacturing facility by Lockheed Martin. 

Lockheed Martin’s investment also includes £15m on NESST – the North East Space Skills and Technology Centre – at Northumbria University. This £50m initiative between Lockheed Martin, Northumbria University and the UK Space Agency will provide a unique facility bringing together world-class academics and businesses, and create a pipeline for talent and world-leading research and space technology. Building on Northumbria’s established expertise in optical satellite communications, space weather and space-based energy, NESST will enable the UK to be at the forefront of research and innovation in these critical fields. 

Investing in the future workforce. Today. 

Recognising the need to upskill people from the earliest age, Lockheed Martin’s plans include an educational programme covering primary schools to T-level placements and A-level internships, through to apprenticeships and degrees to develop a pipeline of talented space employees.   

Companies with transferable products and services will be able to tap into a planned accelerator programme designed to help them enter the space market. Plans also include creating an innovation fund to encourage entrepreneurship and support the next wave of breakthrough space technologies. 

Lockheed Martin has continued to demonstrate its confidence in the UK space sector, which has, in turn, accelerated the growth of the North East space cluster. Putting the North East at the forefront of space industry growth in the UK helps address the years of under-investment in the region by both the defence and space sectors. 

The North East Combined Authority (NECA) and other local organisations in the area recognise the importance of these facilities – not just for the economic growth of the region but also for the contribution they will make to the future defence of the country. 

Director of Economic Growth and Innovation at NECA, Phil Witcherley, recognises the important role Lockheed Martin is playing in the future economic growth of the region. “The presence of a prime like Lockheed Martin in the North East is fundamental to the ambition of our Local Growth Plan and our intention to invest in space and security to drive regional growth,” he said. 

“Lockheed Martin investments, including in the North East Space Skills and Technology Centre, are already acting as a catalyst for further private investment in the region.  

“Although defence spending patterns have changed over time, the North East has maintained a strong record of delivering high-value space and defence capability and having a skilled workforce that continues to support national needs.” 

He added that the proposed Lockheed Martin Assembly Integration & Test facility at NETPark in County Durham “will reinforce economic growth and accelerate skills uptake for the wider space ecosystem.” 

“Establishing satellite manufacturing here represents a strategic opportunity to reposition our defence profile, placing the region at the forefront of future space delivery while strengthening UK capabilities,” he said. 

Paul Livingston, Chief Executive UK & Nato at Lockheed Martin, believes that the value the company can bring – and is bringing – to the country is incalculable. 

“The addition of Lockheed Martin as a UK space prime contractor would address many of the challenges that the space sector has,” he said. 

“A declining share of the global space market; limited diversity in the supply base; concentration in the South East of the country; and access to the US space market are issues which would be addressed. 

“I’ll also emphasise that Lockheed Martin as a prime contractor will provide access to Space Control and Security technology and expertise that the MOD and other parts of government will need to deliver space effects.”  

Although the North East is a prime focus for Lockheed Martin, it is by no means the only part of the UK that is benefiting. 

Lockheed Martin is investing in a Software Integration Lab at its Havant facility, which will design and develop sovereign ground segment software products for UK and international export markets. These products are focused on Mission Planning, Command and Control, satellite networking, ground network planning and intelligent AI initiatives to ensure current and future satellite utility is maximised in this war-fighting domain.  

“The ability to command, control and manoeuvre satellite assets using the latest in cutting-edge technology in a coordinated and timely manner will be vital to the war fighter and military planning,” continued Livingston. 

“This investment will ensure the UK is central to the next generation of ground software products in this growing market.” 

*Data from independent economic impact assessment carried out on behalf of Lockheed Martin