Today we launch the UK Aerospace Outlook 2023 offering our annual guide to the sector.
The UK’s aerospace sector is a hub for advanced manufacturing, generating well-paid jobs across the country and driving decarbonisation through innovation. It directly employs 108,000 people in the UK and supports 5.2k apprentices across the sector. Business turnover is now £27bn which is an indicator of improvements and recovery in the sector. Exports account for a healthy proportion of the turnover, totalling £18.6bn.
The aerospace outlook reflects on ambitions for the sector in terms on new technologies, new export markets and a return to output growth in line with the opportunities provided by rate ramp up. Productivity is 56 per cent higher than the economy average, delivering strategic advantage for the UK. The sector is host to sites nationwide, with 90 per cent of the 108,000 jobs in the sector located outside of London and the South East.
Aimie Stone, ADS Chief Economist
Global production ramp up
The growing demand for aircraft is driving new and continued business for the aerospace supply chain at a pace that is creating some challenges for industry. The ongoing cost of doing business and widespread labour shortages across all skill levels are pressures which remain a critical strategic priority.
At Farnborough Airshow 2022, the Aerospace Growth Partnership (AGP) launched Destination Net Zero, a strategy for the UK to develop its supply chain ambitions through Supply Chain Solutions (SCS), be a world leader in sustainable technology and tackle current and future skills needs.
Innovation driving decarbonisation and new opportunities
The transition to net zero and the need to develop clean aerospace technologies continues to be a focus of innovation and research within the sector. Exciting new developments, including revolutions in propulsion, airframe design and efficiency improvements are among the focus of the next generation of aerospace technology. Advancements in battery technology and propulsion systems are unlocking new flight markets and enabling novel use cases for future flight such as urban and regional air mobility. This new sector has already seen more than 10k orders placed globally by 2023, with entry to service expected in the next few years.
View full publication for the ADS Aerospace Outlook 2023 below:
