1st April 2016 • Steve Northbrooke
With the execution of all of the deals at last year's Paris airshow, the UK economy stands to benefit by £5.5 billion. Currently, the UK Aerospace sector is the largest in Europe, employing around 109,000 people. It holds a 17% global market share in Aerospace industry revenues, making it the second largest in the world. With an annual turnover of around £29.2 billion, UK Aerospace and Defence is most assuredly a big deal, and it’s only getting bigger.
Significant commercial growth is expected in the sector in the near future, driven by increased production rates and a continuous rise of passenger travel demand. Production rates are anticipated to be driven by the replacement of older aircraft with next generation craft – tipped to be fuel efficient. Global Aerospace and Defence industry heavyweight Deloitte were expected to grow by 3% in 2015, whilst Airbus Group (which conducts ALL its design and testing at its engineering facility in Bristol) has just announced 146 firm orders and commitments as a result of the Airshow. This includes deals for 95 jets – so it’s likely that there will be an increase in activity in the Bristol facility.
The UK Aerospace, Defence, Security and Space industry provides 109,000 jobs directly, and supports a further 120,000 indirect jobs. It also provides around 3,300 apprenticeships – that’s a grand total of 559,000 opportunities for employment.
If that wasn’t enough, it’s estimated that more than 29,000 large civil airliners, 5,800 regional aircraft, 40,000 helicopters and 24,000 business jets will be required worldwide by 2032. This means a potential market share of $600bn for the UK – which specialises in the development and manufacture of some of the hardest, most technically complicated parts of a modern aircraft.
With a predicted growth rate of 6.8% over the next few years, the Aerospace industry could potentially bring in £4.7 billion in exports annually – purely as a result of air traffic growth in Asia. This air traffic growth will also add 20,000 high value jobs to the sector.