The value of the aerospace, defence, security and space sectors to the UK is growing

According to the trade association, the figures show a 40 per cent increase in turnover for businesses in these sectors, reaching a combined £88.4bn in 2023.

Given that almost half of the industry’s turnover comes from exports, the ADS data points to a 32 per cent increase in exports to a total of £38.7bn in 2023 (compared to 2013).

Employment in the aerospace, defence, security and space sector has increased by a third (29%) since 2013 and will reach 427,500 jobs in 2023. Of these, 23,000 will be apprenticeships, with two thirds of the jobs being based outside London and the South East.

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

“Our latest publication highlights the 50% increase in value they have added to the UK over the last ten years. Supporting 427,500 jobs across the UK – a third increase on 2013 figures – our industries are driving UK prosperity and innovation, providing a centre for advanced manufacturing and driving our decarbonisation agenda.”

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.

“With average productivity of £89,300 per worker, over 400,000 jobs created and exports worth almost £39 billion, the enormous value of these sectors to the UK economy is simply undeniable.”

Ahead of the Farnborough International Airshow, ADS has also released its aerospace sector forecasts for 2024, which predict the sector will add £10.9 billion to the UK economy, a 16% increase on 2013 figures.

The figures show 104,000 direct jobs in the aerospace sector, with an average salary of £48,700 – 39 per cent higher than the UK average, with the vast majority (88 per cent) based outside London and the South East.

Stone commented: “Despite the ongoing long-term and short-term impacts of the Covid-19 pandemic, it continues to add huge value to the UK economy. Productivity per employee now stands at £104.8k and those employed are paid an average of £48.7k – 39% more than the UK average.”

The UK defence sector has remained agile despite an increasingly challenging geopolitical environment, highlighted in the 2024 Defence Outlook published by ADS.

The sector accounts for 164,000 jobs in the UK, a number that has increased by 16% between 2013 and 2023. The average salary in the sector is £39,900, 14% higher than the UK average.

Kevin Craven, Chief Executive of ADS, said: “The true value of our defence sector – providing security, safety and prosperity across the UK – cannot be measured.”