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Aerospace

ADS sees healthy UK aerospace sector in first half of 2024

The latest figures from ADS, trade association for the UK’s aerospace, defence, security and space sectors, has found commercial aircraft orders fell 71% in the first half of 2024 compared with the first half of 2023, while deliveries fell by 14% in the same period.

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Other than 2023, aircraft orders in the first half of 2024 remain at their highest level since 2018.

The latest order figures were released ahead of the start of the Farnborough International Airshow (FIA) today, the aerospace sector’s flagship event which looks set to feature several key order announcements.   

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The 14% fall in delivery rates is a reflection of supply-chain, regulatory and capacity challenges facing the sector.

Aircraft order backlog worth £247 billion to UK economy over 10 years, as sector delivers nearly £11 billion in value add

The 15,668 global aircraft order backlog is worth up to £247 billion for the UK economy and is 8.3% higher than the same point in 2023, reflecting general sector confidence.

ADS’ Aerospace Sector Outlook showcases the £10.9 billion of economic contribution of UK aerospace in 2023, a figure that has increased 16% since 2013.

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Productivity within the aerospace sector has risen 25% since 2013, with the sector’s c104,000 jobs providing an average of £104,800 output per worker. Eighty-eight per cent of those jobs are located outside of London and the South East and the median average salary of aerospace sector jobs is 39% higher than UK average at £48,700.

Aimie Stone, Chief Economist at ADS said: “Despite notable challenges, the UK aerospace sector is thriving only a few short years since a pandemic that grounded almost all areas of the civil aerospace sector.

“Twenty-twenty three was a record-breaking year for aircraft orders and deliveries and the first half of 2024 has only fallen slightly behind 2023 delivery rates. The data for the sector in the last decade shows long-term resilience within the UK aerospace industry, as well as increasing productivity levels in this dynamic, innovative sector.

“Intelligent support from Government to tackle issues in the supply chain, cash flow and capacity constraints has the potential to turbo-charge more long-term growth in this sector, providing significant benefits to the economy for the future.

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