Amey’s Defence Services spends big with local SMEs

• Amey’s Defence Services spent just under £340m with small businesses across the UK according to newly released financial data
• The data shows that over 60% of Amey’s Defence Services total spend in 2018/19 was with small businesses
• Stats show firm has almost doubled the 33% target set by Government for amount companies should spend with SMEs
• The figures showcase the central role that SMEs play in the supply chain of one of Britain’s largest defence services companies

Amey Defence Services, part of Amey, the leading infrastructure provider and consultancy, spent almost £340m – 61.4% of its total spend – with small businesses across the UK last year. The new data means that the firm has almost doubled the 33% target set by Government for the amount companies should spend with SMEs.

The data has been published as part of an Amey-wide drive towards greater transparency across the business and to further the company’s commitment to giving small and local businesses a central role in the defence supply chain.

Amey’s decision to publish its spend data represents a landmark development for the public services sector, which has undergone a series of reforms over the last two years as part of the publication of the Cabinet Office Outsourcing Playbook – a key objective of which is to embed greater transparency across the UK’s public services.

The Outsourcing Playbook includes a commitment to encourage greater SME participation in public services, by encouraging strategic suppliers like Amey to procure from SMEs, and by encouraging SMEs to transact directly with government where possible. Currently government is targeting a 33% annual spend with SMEs. The MOD has announced its own commitment that 25% of its procurement spend should go to SMEs either directly or indirectly through the supply chain by 2022.

Speaking about the figures, Managing Director for Amey’s Defence Services business, Tim Redfern, said,

“As one of the largest defence services companies in the UK we sit at the heart of the UK’s Armed Forces Community, supporting them in their vital work. This data makes clear that absolutely central role that small and medium sized companies play in our supply chain. Last year 61.4% of our total spend was with SMEs in communities across the country. These companies help us to do vital work, and we are proud to support them.

“Our willingness to share our spend data reflects our commitment to transparency and to reforming the way public services are delivered in the UK. Amey’s Defence Services sit at the heart of the UK’s Armed Forces community, providing and maintaining critical infrastructure and facilities, from runways to barracks, to supporting services families nationwide. The geographical reach of our contracts and the nature of the work we undertake makes us well placed to support SMEs. We look forward to supporting government with its SME strategy by continuing to source services and products from SMEs where we can and by making Amey an easier business for SMEs to transact with overall.”

Amey has a turnover of £2.2bn and a supply chain spend of £1.7bn, of which 47% goes to SMEs. Amey has worked with the MOD for over 17 years and is one of the UK’s largest defence service companies. To find out more about its defence business and to access Amey’s spend data, please visit www.amey.co.uk/defence