UK aerospace sector adds £11bn to economy, report finds

The UK’s aerospace sector has added £11bn to the economy over the past decade, new figures reveal. The figures, released ahead of next month’s Farnborough International Airshow, show the sector’s value has increased by 16% compared with 2013.

The Aerospace Sector Outlook 2024 report by ADS – the UK’s industry association for aerospace, defence, security and space – highlights 104,000 direct jobs in the sector, including 6,000 apprenticeships. The majority of positions (88%) are based outside London and the South East, and the median average salary in the sector is now £48,700 – 39% higher than the UK average.

The UK aerospace sector is expected to have a turnover of £30.5 billion in 2023, of which 36% will be generated by military activities and 64% by the civil aerospace sector.

The figures form part of a wider report published by ADS Group which shows that the aerospace, defence, security and space sectors will add £38.2bn to the UK economy by 2023, a 50% increase over the past 10 years.

Turnover for businesses in these sectors rose by 40% to a combined £88.4bn last year, according to the trade association.

Aimie Stone, Chief Economist at ADS Group, said: “The latest data reflects the continued vitality, resilience and economic determination that our sectors continue to deliver to the UK. Despite the global pandemic weighing on manufacturing output, an ongoing critical skills gap and demand outstripping capacity, we continue to see strong long-term growth rates continuing into 2024.”

Employment in the aerospace, defence, security and space sector has increased by a third (29%) compared to 2013 figures and will employ 427,500 people in 2023. 23,000 of these will be traineeships.

Kevin Craven, CEO of ADS Group, added: “ADS’s businesses are at the heart of UK advanced manufacturing and innovative digital services. Our true value extends beyond our economic footprint, supporting British society, families and our way of life.”

He added: “Our industries drive UK prosperity and innovation, serving as a hub for advanced manufacturing and driving our decarbonisation agenda.”