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Aerospace

UK Aerospace production falls 3.8% in Q2

ADS announced today that global aircraft deliveries reached 716 by the end of July, with several factors contributing to a slower production rate than originally forecast, which now stands 93 behind the pace set in 2018.

While single-aisle aircraft deliveries remain slow, widebodies set a new July record, taking the overall value to UK industry of aircraft deliveries for 2019 to date to £17 billion.

ADS has revised down its forecast for 2019 global aircraft deliveries from 1,789 to 1,489 following the release of Q2 figures last month.

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Office for National Statistics (ONS) Index of Production data for Q2 2019, published in August, showed UK Aerospace manufacturing, repair and maintenance declined 3.8% in the three months to June. Aerospace manufacturing experienced little to no change over the first six months of 2019, excluding a spike in March associated with stockpiling, following a 4.5 per cent annual decline in 2018.

The aerospace sector spent an estimated £600 million preparing for Brexit before 29th March this year, a figure that is expected to rise as new preparations are made for the UK leaving the European Union (EU) without a deal in October.

ADS Chief Executive Paul Everitt (above) said: “Aircraft production has slowed this year in the face of headwinds both in the UK as fears of a No Deal Brexit loom larger for manufacturers, and from international factors.

“Companies across our £36 billion aerospace sector are now faced with the task of preparing for a disorderly Brexit for a second time this year. No Deal remains the worst outcome for industry, with many small businesses particularly vulnerable.

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“A No Deal Brexit will cause significant short-term disruption and leave UK aerospace at a competitive disadvantage.

"The Government must make securing a good deal its top priority, as transport disruption, border delays and a cashflow crisis threaten too many businesses if the country leaves the EU without a deal.”

 

 

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