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Aerospace Defence

UK aerospace & defence Connector business on the up

In Q3 2024, whilst Interconnect Technologies Suppliers Association (ITSA) members reported a significant slowdown in business - with revenues down 4% year-on-year and orders down 10% year-on-year - the aerospace & defence sector was up 16%.



Image courtesy ITSA

In Q2 ITSA's view was that 2024 could be a bit tougher than previous years but it is looking to be worse than that and book-to-bill remains negative at 0.96:1

Distribution is a specific concern as it has dropped 16% and it is thought that this is likely the result of de-stocking in anticipation of a possible further market slowdown.

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DSEI 2025

Market sectors continue to perform variably, with some areas outperforming:

  • Mil/Aero (aerospace & defence sector) up 16% (this major sector represents 20% of members total sales)
  • Broadcast up 69%
  • Medical up 42%
  • Communication up 39%
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Outlook for 2025
Next year is looking like one of caution with most members expecting flat revenues and any growth expected to be low single-digit.

However, the current level of new enquiries seems to be high and some key projects are rolling into 2025, so this may make next year a little more positive.
    
According to the latest Make UK Manufacturing Outlook Survey, although optimism is up, the output balance is down, for the first time in four years, nevertheless some 60% of companies are optimistic about 2025.

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