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PwC ranks UK top in Europe and fourth globally for A&D manufacturing attractiveness

A new PwC report that assesses the attractiveness of aerospace and defence (A&D) manufacturing investments by nations has ranked the UK, with revenues of US$46 billion, within the top four globally.


Courtesy PwC

The 2019 Aerospace Manufacturing Attractiveness report assesses a range of aspects such as cost, economy, infrastructure, labour, industry and tax policy. It ranked the US in top spot, closely followed by Canada, Singapore and the UK with Germany and the Netherlands following closely behind at 7th and 8th respectively.

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Crucially this analysis takes into consideration geopolitical risks, such as Brexit, with the UK judged to remain a strong investment competitor as a result of its robust A&D industry.

Roland Sonnenberg, head of UK aerospace and defence at PwC, commented: “We’ve seen a lot of speculation that uncertainty over Brexit terms and the potential disruption to global supply chains may impact the ability to attract global investment and meet production timetables. But this analysis shows that the UK continues to be a strong competitor when it comes to investment and expansion opportunities.

“The launch of a new Future Flight Challenge initiative at the end of last year, which saw the government commit up to £125 million to develop new technologies such as drones and urban air vehicles has gone some way to stabilising the UK’s 2019 ranking, especially as industry is expected to more than match this investment.

“The UK has a real depth of talent and capability in the sector, which remains well positioned to support the economy as we continue to make a strong and vital contribution across global markets.”

The report also highlights an announcement in July 2018 by the UK Defence Minister, in which the government has pledged to invest £2 billion over the next six years in the next generation fighter jet, the ‘Tempest’, along with the intention to seek international partners to provide additional funding.

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According to the report, the global Aerospace and Defense (A&D) industry delivered record levels of operating revenue and operating profit in 2018, both increasing by 9% over the prior year. It also notes that commercial aerospace is forecasted to continue to grow at roughly twice the rate of global GDP for the foreseeable future.

To access the full report: www.pwc.co.uk/aerospacemanufacturing 


 

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