A|D|S survey highlights robust figures despite downturn

As in previous years, when the survey was run by A|D|S predecessor organisation SBAC, the results provide a definitive picture of the overall UK-based aerospace sector and are used by Government and analysts alike.

“Last year was tough for the whole aerospace industry given the wider context of the global downturn but these results demonstrate the resilience of the UK-based part of the sector,” stated Ian Godden, chairman of A|D|S.

“Overall this is an extraordinary performance during a worldwide recession with an increase in revenues, a rise in productivity and stability within our 100,000-strong highly-skilled workforce.

“The UK aerospace sector remains number one in Europe and second only to the US globally. Our industry consists of over 2,600 high-value manufacturers and service providers, large and small with a nationwide footprint. It is still very competitive worldwide, illustrated by the fact that two thirds of our revenues come from exports and our productivity continues to improve at a consistent long-term annual rate of 6%. We are boosting the UK economy at a time of great need and there is further potential for growth in our sector, assuming we receive bold and high level support from the UK Government. This support will be crucial to compete with other powerful nations who are ambitious to take a growing share in this attractive growth market.

“However, this current UK success and the strength to ride out the worst of the recession are based on long-term, sustained investment in the past especially in R&D and workforce development. A decline in such investment over the past two years in our surveys is a cause for concern, especially in the context of further cuts anticipated in defence. Although the downwards trend in R&D spending is somewhat expected in the short-term during a recession, the industry will have to reverse this now that the economy is showing signs of picking up.”

Headline survey findings are as follows:

• Revenue up 5.4% to £22.2 billion, with defence accounting for 52% of this figure or £11.6 billion and exports responsible for 70% of overall turnover
• Workforce levels steady at just over 100,000 • Orders down 10.4%, but at a lower level of decline than in 2008, at £32.2 billion • Research and development spending down 7.4% to £1.74 billion reflecting a global trend during the downturn • Exports to the ‘rest of the world' and the EU grew by 20 and 10% respectively • Aerospace defence exports grew by 15% to £6.68 billion • Overall sales to the US, mainly in defence, fell by 20% • Productivity per employee up 6.2% • Improving global predictions of new aircraft sales were reflected in a 27% rise in systems and frames sales at £14 billion • Encouragingly, the number of young people studying industry-related subjects rose by 6%. This is crucial for the long-term health of the sector given the UK industry employee's average age is 54

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