ADS reacts to Chancellor’s Autumn Statement

ADS has reacted to the Chancellor's Autumn Statement

focusing upon the separate issues of: planned national infrastructure projects including airports; skills and education; and support for mid-caps – the companies that have expanded beyond the definition of SME. On the Government's commitment to national infrastructure projects including airports, ADS' managing director aerospace and operations, Graham Chisnall (pictured) said: “A commitment to including airport growth in the planned national infrastructure projects is welcome not only for the aviation sector but the wider business community. However this analysis must go ahead as soon as possible, and involve the industry it will directly affect. It also needs to address the very real concern of providing a working airport structure for the South East. Airport capacity in this region is already over-stretched and we need to be working on a solution now. “With current aircraft such as the Airbus A380 burning only 3litres of fuel per 100 passenger kilometres, and future aircraft like Bombardier's new CSeries covering the same distances with more efficiency than a Smart car, it is clear that industry is able to deliver environmentally acceptable solutions. In addition, UK aerospace is a world leading sector that has a 17% global market share, and is contributing significantly to the overall UK economy.” On the Government's proposed Education and Skills agenda, Chisnall added: “The Government is right to see the UK education system as a nation's foundation for economic growth. Recognising science graduates as key to achieving this demonstrates the Government's awareness of the importance an advanced manufacturing sector can have. “Aerospace which has grown by value consistently during the recession, is an export driven sector with nearly 70% of all sales destined for overseas markets, and is worth £29 billion per year to the country. The success and the contribution aerospace makes to the economy rest on the talents of our young people leaving school and university into its apprenticeship and graduate schemes. “The aerospace, defence and security industries in recent years have been facing a real shortage of school leavers with the appropriate skill set. Getting this balance right is crucial to the long term success of these wealth creating sectors in the UK. With a vibrant apprenticeship culture and an average salary of nearly 50% higher than the national average these sectors are immensely attractive areas for our young people to work in. Therefore industry welcomes Government initiatives in this area, and looks forward to contributing towards these policies' success.” On the Government's planned support for mid-cap companies and SMEs, Chisnall said: “It is encouraging news to see that the Government is recognising the value of the mid cap companies in the UK and their great capacity for growth. Aerospace in the UK still retains a full supply chain, from global Primes to medium and small companies. However, with a level of employment currently estimated at more than that of primes or the SME community put together, the importance to the UK economy of industrial  mid caps has largely been ignored to date. The promise of direct Government loans for these companies and support on the route to export, which will generate new jobs and wealth, is to be applauded and encouraged. “The SME community is the bedrock upon which our advanced manufacturing sectors are built. Ensuring that these companies are able to access the right level of support helps to create a stable supply chain and industry sectors at large. ADS will watch the development of these initiatives with interest.” www.adsgroup.org.uk

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