General Atomics

Workforce challenges hold back aerospace and defence firms, but only one in five prioritises action

New PwC research reveals a gap between workforce pressures and strategic priorities, as UK employers face persistent vacancies and rising demand for technical skills.

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Workforce challenges are constraining aerospace and defence companies’ ability to deliver, yet only one in five executives place workforce capability and productivity among their top three strategic actions, according to PwC.

The consultancy’s 2026 Global Aerospace and Defence Sector Outlook, based on responses from 375 senior executives worldwide, found that about half identified workforce capability and productivity as a top barrier to delivery.

That mismatch comes as respondents plan to increase production or delivery capacity by an average of 28% over five years, raising questions about whether workforce investment is keeping pace with growth ambitions.

The finding does not mean the remaining companies are taking no action. However, PwC argues that workforce issues are not receiving the strategic emphasis needed to address them fully.

UK employers face persistent skills shortages

Although PwC’s findings are global, UK evidence illustrates the scale of the challenge.

ADS reported this year that 66% of aerospace employers were experiencing persistent workforce and skills shortages that held back growth. Across aerospace, defence, security and space, it identified an average of 10,000 unfilled technical vacancies annually.

The trade association’s There’s Aerospace For You recruitment campaign, backed by companies including Airbus, GKN Aerospace, Rolls-Royce and Safran, aims to widen the pool of potential recruits. Polling for the campaign found that 59% of the public had never received information about aerospace careers.

Pressure is also set to increase in defence. A Skills England assessment updated in October projects demand for around 82,000 workers across 14 priority occupations by 2035, comprising approximately 53,000 additional positions and 29,000 replacements for people leaving the workforce.

These are indicative workforce requirements, rather than a forecast of unfilled jobs. Nevertheless, attracting those people will involve competition: 12 of the 14 occupations are also priorities for other sectors, including advanced manufacturing, clean energy and digital technology.

Recruitment alone will not close the gap

PwC argues that companies must improve the productivity of existing employees alongside recruiting engineers, technicians, machinists and skilled tradespeople.

Technology is already part of the response. Respondents facing significant skills barriers were 2.1 times as likely as other companies to invest in physical AI, including autonomous inspection, robotics and automated manufacturing.

AI also brings additional skills requirements. Skills England identifies a need for defence staff who can scrutinise AI outputs, protect sensitive data and oversee adoption, alongside specialists capable of developing the systems themselves.

PwC says that the response starts with connecting workforce decisions to production plans. Hiring and productivity investment should be aligned with capacity requirements, rather than treated as a downstream HR exercise.

For companies promising higher output, that means planning how people will deliver it alongside investment in factories, equipment and technology.

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