The Half-Year Aerospace Update: An Overview of the UK Aerospace Market
The UK aerospace market remains an export masterpiece. Although no civil aircraft manufacturing exists in the UK, the contribution to the global civil aviation sector remains significant. We've taken a look at 2024 so far with our half-year update, assessing the contribution to the UK economy and the latest news in this cutting-edge sector.
The Recent Picture
June marked the release of the ADS Group (UK trade association for Aerospace, Defence, and Security) report on the aerospace sector's 2023 numbers. The report highlighted the sector as an extremely positive asset to the UK, a hub of advanced manufacturing and innovation in this space, and a massive economic contributor. 
2023 showed a £10.9 billion contribution to the UK economy within the sector, employing over 104,000 individuals directly and over 6,000 apprentices, enabling the development of long-term skill sets within the industry. Over the last 10 years, the sector has seen a 16% growth, and productivity (measured on a per-worker basis) has grown by 25% in the same period.
Despite the challenges presented by the COVID-19 pandemic, employment continues to bounce back, and the aerospace sector boasts salaries 39% higher than the UK average. Since 2011, the value of aerospace exports has grown year on year and accounts for 11.7% of the total export of manufactured goods in the UK.
The Big Players and Ones to Watch
Despite civil aircraft being manufactured outside of the UK, due to the supply chain and defence sector, the UK is home to a number of domestic organisations, the top five most prominent/largest being:
- BAE Systems - A British multinational aerospace, defence, and security PLC based in the UK. It's the largest defence contractor in Europe.
- Cobham - A group of dynamic businesses covering critical applications primarily in aviation and SATCOM. Best known for in-flight refuelling technology. Recently, divisions have been sold to Thales and Eaton.
- GKN - A British multinational covering both aerospace and automotive. Its technology is on over 100,000 flights per day and is focused on the development and manufacture of composites, aerostructures, engine systems, and transparencies primarily.
- QinetiQ - A defence technology company headquartered in Farnborough. Its aerospace involvement spreads from countermeasures, flight training, and air traffic management to much more.
- Rolls-Royce - A British PLC specialising in aerospace and defence, trading since 1904. A household name for aviation and the second-largest manufacturer of aircraft engines in the world.
The UK isn't just home to domestic aerospace businesses; many international entities have chosen the UK to be home to parts of their organisations, capitalising on industry expertise and overall practices. Some of these household names include:
- Parker Meggitt - A previously British PLC until acquired in 2022 by Parker Hannifin. Multiple locations across the UK.
- Airbus - A European multinational aerospace corporation, primarily in the design and manufacture of commercial aircraft and helicopters. Multiple locations across the UK.
- Leonardo - An Italian aerospace, defence, and security business. Eight locations across the UK.
- GE Aviation - A General Electric company specialising in aviation, primarily aircraft engines. Primary sites in the UK are Gloucester and Cheltenham.
- Lockheed Martin - An American aerospace and defence manufacturer, opening in the UK for nearly 80 years.
Important News in 2024
2024 has seen a number of important and exciting announcements for the sector, both from the government and the industry itself.
This year marks the 10th anniversary of the ATI (Aerospace Technology Institute), which has included £3.6 billion in funding for aerospace R&D projects, supporting thousands of jobs and helping to make the UK a world leader in the industry.
Rolls-Royce announced an upgrade to what is considered the most successful aircraft engine of all time, the Trent family. "This is about making a world-class engine family even better and better", said Ewen McDonald, Chief Customer Officer.
Airbus announced plans to create further jobs in the UK, hiring 400 staff at their Welsh plant. The factory currently makes wings for Airbus and has been promised as the site to assemble helicopters as part of a bid to the MoD.
Spirit AeroSystems, an American business with a significant site in Prestwick, has been acquired by Boeing. They have announced the commitment to supplying Boeing from Prestwick, but details are pending for the overall site plans and relationships with Airbus.
What's to Come
2024 looks to be an exciting year for aerospace. With a significant backlog in aircraft orders, the UK maintains a strong position in both expertise and operational capability to supply the sector. The airshow returns to Farnborough (July 22-26), where the leading companies and innovators will exhibit and showcase what's to come.
We're also expecting a government update on the Jet Zero Strategy (net zero aviation by 2050) after the last July 2023 update and hope to see developments in both hydrogen capability and further emission technologies to aid this goal.
The aerospace sector continues to be a passion for the UK and Owen Daniels, a sector we are proud to support in our commitment to the STEM industries. We're excited to see the incoming developments and further strengthen the UK's capability through our expertise.
