Aerospace Sector Thrives with 300% YoY increase in orders alongside 40% increase in deliveries
- Orders placed in May 2023 is 306% higher than in May 2022 at 146 aircraft orders
- 38% increase in aircraft deliveries in May 2023 is encouraging for the sector amidst supply chain challenges and slightly muted start to the year.
- Current backlog in orders is estimated to be worth more than £205bn to the UK
London (26 June 2023) – The UK’s aerospace sector continues to be buoyant in the midst of supply chain challenges and a muted Q1 outlook, according to the latest aircraft orders and deliveries report compiled by ADS. The 146 aircraft orders placed in May 2023 is a 306% increase on the 2022 figures, as the confidence in the UK aerospace sector continues to grow. Deliveries increased 38% over the same time period.
The current backlog of aircraft orders is 13,406 aircraft, a positive marker for the health of the sector. The potential value add of this backlog to the UK economy could exceed £205 billion, representing several years worth of work.
“The staggering year on year increase in aircraft orders highlights growing confidence in the aerospace sector,” said Aimie Stone, Chief Economist at ADS Group.
“While the sector is not expected to reach post-pandemic levels until 2024, the 38% year on year growth in aircraft deliveries highlights its resilience and is a positive health check in the midst of increased supply chain challenges.”
June saw the Paris Air Show 2023 generate aircraft deals worth a projected value of $155bn. The value of firm aircraft deals to the UK is estimated to be worth up to £13.6bn at published list prices and assumed content of production. The firm aircraft orders will be included in the half year results, next month.
The latest figures published by ADS Group showcase exports from the UK aerospace sector being worth £18.6 billion in 2022. It further highlights that businesses in the UK’s aerospace sector generate £27 billion in turnover, with value add to the UK economy worth £10.9 billion.
ADS Group is the UK trade organisation representing the Aerospace, Defence, Security and Space sectors, with more than 1,200 member businesses.