£453M Radar Contract Secures 1,300 UK Defence Manufacturing Jobs Across Edinburgh, Lancashire and Luton

The UK Ministry of Defence has awarded a £453.5 million contract to manufacture advanced radar systems for Royal Air Force Typhoon fighter jets, securing 1,300 highly skilled manufacturing jobs across three regions over the next decade.

The contract, announced by Defence Secretary John Healey during a visit to Leonardo UK’s Edinburgh facility in January 2026, marks the transition from development to full production of the European Common Radar System (ECRS) Mk2, described by industry experts as the most advanced combat radar ever developed in Europe.

What the Contract Delivers

The contract brings together three major UK defence manufacturers: BAE Systems, Leonardo UK, and Parker Meggitt. Together, they will produce 40 production-standard ECRS Mk2 active electronically scanned array (AESA) radars for RAF Tranche 3 Typhoons. This comprises 38 new systems plus modifications to two existing test systems.

Deliveries are planned to begin later this decade, with Initial Operating Capability expected by 2030. The radar systems will ensure the Typhoon remains operationally effective until at least the 2040s, fulfilling the Strategic Defence Review’s commitment to maintain the aircraft as the backbone of UK combat air capability.

Regional Job Distribution

The contract creates and sustains manufacturing employment across three distinct UK locations:

Edinburgh (300 jobs): Leonardo UK’s Radar and Advanced Targeting Systems centre of excellence will lead the design and manufacture of radar hardware. The Edinburgh site employs nearly 3,000 people, with more than half working in highly skilled professions including hardware, software, electronics, and systems engineering.

Lancashire (120 jobs): BAE Systems’ Warton and Samlesbury sites will handle system integration and aircraft modification. These Lancashire facilities collectively employ 12,000 people, with 6,000 directly working on the Typhoon programme. The sites have already completed extensive flight testing of the ECRS Mk2 prototype.

Luton (100 jobs): Leonardo’s Electronic Warfare Centre of Excellence will contribute specialist electronic warfare capabilities, a critical differentiator for the ECRS Mk2 system.

Technical Capabilities That Set This Radar Apart

The ECRS Mk2 represents a fundamental shift in what airborne radar can achieve. Unlike traditional fire control radars focused solely on tracking, the Mk2 integrates surveillance, electronic warfare, and electronic attack into a single multi-function system.

Key capabilities include:

Simultaneous multi-mission operation: The AESA technology allows the radar to detect, identify, and track multiple targets in the air and on the ground whilst simultaneously conducting electronic attack missions. There is no physical movement of the antenna; beams are steered electronically for near-instantaneous response.

Unmatched frequency coverage: According to Iain Scott, Leonardo UK’s Vice President of Capability and Chief Technology Officer, the ECRS Mk2 “will be the most wideband in terms of RF frequencies that will operate over in the world, much wider than any US system.” This wide frequency coverage enables passive detection capabilities critical for operating in contested environments.

High-powered jamming: The system can suppress enemy air defence systems independently, reducing reliance on dedicated jamming aircraft. This is particularly relevant for Suppression of Enemy Air Defences (SEAD) missions where aircraft face sophisticated surface-to-air missile batteries.

Gallium Nitride technology: The radar incorporates advanced GaN components that provide significantly greater power and efficiency compared to previous Gallium Arsenide systems.

The Broader Supply Chain Impact

Whilst the headline figures focus on the three prime contractor locations, the contract’s economic ripple extends far wider. Leonardo UK alone works with over 71 UK-based suppliers on the ECRS Mk2 programme.

The full Typhoon programme supports more than 20,000 jobs across 330 UK companies and contributes £1.4 billion to the economy annually. This latest radar contract represents one element of a broader upgrade ecosystem that sustains a substantial manufacturing base.

The contract announcement coincided with a separate £205 million engineering support contract awarded to QinetiQ, sustaining up to 250 additional UK jobs. Combined, this single week saw over £650 million committed to Typhoon-related manufacturing and engineering work.

Context: Defence as an Engine for Growth

The radar contract arrives at a pivotal moment for UK defence manufacturing. The government’s Defence Industrial Strategy, published in September 2025, explicitly positions defence as “an engine for growth” with a £75 billion commitment that places SMEs at the centre of procurement strategy.

Regional Defence Growth Deals worth £250 million have been announced for Scotland, Wales, Northern Ireland, Plymouth, and South Yorkshire. The Edinburgh radar contract exemplifies how these strategic investments translate into tangible manufacturing employment.

The UK has committed to increasing defence spending from 2.3% of GDP to 2.5% by 2027, with aspirations to reach 3% in the following parliament. The 2025 Spending Review projects defence expenditure rising from £62.2 billion in 2025/26 to £73.5 billion in 2028/29.

Scottish Secretary Douglas Alexander emphasised the contract’s regional significance: “This £453 million contract award to build state-of-the-art radar systems for Typhoon fighter jets shows just how vital Scottish expertise is to the UK’s national security and why Scotland is globally recognised as a centre of defence excellence.”

Export Potential and Future Opportunities

Whilst the RAF is currently the only confirmed customer for ECRS Mk2, the contract positions UK manufacturers for potential export wins.

Mark Hamilton, Managing Director of Leonardo Electronics UK, noted: “We hope ECRS Mk2 will see wider adoption by other Typhoon export users given its advanced capabilities against current and future threats.”

Several factors support export optimism:

Turkey deal momentum: In October 2025, the UK secured an £8 billion contract with Turkey for 20 Typhoons, described by the government as “the biggest fighter jet exports deal in a generation.” This establishes a potential pathway for radar upgrade sales.

Saudi Arabia opportunity: The Kingdom operates the largest Typhoon fleet outside Europe and has previously expressed interest in capability upgrades. Italy is also considered a likely customer due to Leonardo’s involvement in the radar’s development.

European defence spending surge: The EU’s SAFE (Security Action for Europe) fund represents €150 billion in potential defence investment. Whilst UK access remains subject to ongoing negotiations, successful deployment of ECRS Mk2 demonstrates sovereign manufacturing capability that strengthens the UK’s negotiating position.

What This Means for UK Manufacturers

For manufacturers beyond the aerospace sector, this contract illustrates several trends worth monitoring:

Long-term programme visibility: The radar contract provides a decade of secured work, enabling manufacturers to invest in skills, facilities, and equipment with greater confidence. This contrasts with shorter-cycle commercial contracts that make capital investment decisions harder to justify.

Regional cluster development: Edinburgh, Lancashire, and Luton have each developed distinct specialisations within the defence electronics ecosystem. This clustering effect creates deeper local supply chains and talent pools that benefit adjacent industries.

Advanced manufacturing crossover: Technologies developed for defence applications frequently transfer to commercial sectors. AESA radar principles, for instance, have applications in automotive, communications, and weather monitoring systems. Manufacturers with defence exposure gain early access to emerging capabilities.

Apprenticeship pipelines: The contract announcement specifically highlighted the 900 apprentices, graduates, and industrial placement students employed by Leonardo across Scotland and the UK. BAE Systems’ Lancashire sites plan to recruit 510 trainees in 2026 alone (221 apprentices, 66 undergraduates, and 223 graduates).

Looking Ahead: From Typhoon to GCAP

The ECRS Mk2 contract also serves a bridging function. BAE Systems has been explicit that maintaining Typhoon production and upgrade work keeps critical manufacturing skills and facilities operational ahead of the Global Combat Air Programme (GCAP), the UK-Japan-Italy sixth-generation fighter jet project.

Richard Hamilton, BAE Systems Managing Director for Europe and International, stated: “The continued investment in Typhoon capability is crucial and ensures we’re able to maximise the UK’s investment in the aircraft and accelerate combat air technologies critical for defence capabilities.”

For manufacturers positioning themselves in defence supply chains, understanding how current programmes feed into future platforms is essential. The radar expertise developed through ECRS Mk2 will directly inform sensor development for next-generation combat aircraft.

Practical Implications for Operations Directors

The £453 million radar contract offers several actionable insights for manufacturing leaders:

Review defence supply chain opportunities: With over 71 UK suppliers supporting Leonardo’s radar work alone, opportunities exist beyond prime contractor status. Defence Equipment and Support (DE&S) actively encourages SME participation, and the new Defence Joint Industry Council includes SME representation for the first time.

Assess your regional positioning: If you operate in Scotland, Lancashire, or the South East (Luton corridor), consider whether your capabilities align with defence cluster needs. Defence Growth Deals aim to expand supply chains in designated regions.

Evaluate workforce development: The contract’s explicit focus on apprenticeships and skilled employment reflects a sector-wide push to address skills shortages. Manufacturers with strong training programmes become more attractive as supply chain partners.

Track procurement reform: The government has committed to streamlining defence procurement and improving SME access. Reforms include faster approval processes (cutting timelines from 18 months to 3 months for some contracts) and increased transparency in requirements.

Conclusion

The £453.5 million ECRS Mk2 radar contract is more than a defence procurement headline. It represents a strategic investment in UK sovereign manufacturing capability, regional employment, and high-value engineering skills.

With 1,300 jobs secured across Edinburgh, Lancashire, and Luton, plus extensive supply chain benefits reaching 71+ UK suppliers, the contract demonstrates how defence investment translates into manufacturing employment and economic growth.

For UK manufacturers, the message is clear: defence remains a significant growth sector with long-term programme visibility, strong apprenticeship pipelines, and genuine technology transfer potential. Whether you are already in defence supply chains or considering entry, understanding these dynamics will be increasingly important as UK defence spending rises through the rest of the decade.