industry information > communications > publications and information > UK aerospace industry survey 2007 > UK aerospace in 2006 - a message from the SBAC President

SBAC's UK Aerospace Industry Survey is the most comprehensive analysis of companies supplying the civil air transport, aerospace defence and space sectors. This year's results show that the aerospace industry is enjoying a sustained period of growth and UK based companies are successfully winning business in an increasingly competitive global marketplace.

The survey shows aerospace is a UK success story and remains the largest aerospace industry outside the USA. In 2006 it directly employed 124,000 people, had a turnover of £19.81 billion and saw new orders increase by nearly 6 per cent to £26.2 billion.

UK aerospace manufacturing is globally competitive and exports 63 per cent of its total sales. UK companies also have a significant presence overseas, employing 48,780 people and generating sales of £7.9 billion.

More importantly aerospace is a growth business with demand for freight and passenger travel increasing year on year and increasingly sophisticated demands from the converging defence and security sectors.

It is estimated that demand for new aircraft will exceed 22,000 units up to 2025, of these more than 68 per cent will be single aisle aircraft. These are the workhorses of international aviation fleets and the key products in fast growing markets like Brazil, Russia, India and China.

Aerospace manufacturing provides high value and highly skilled jobs. The latest data shows that 34 per cent of all employees in the sector hold a university degree or equivalent and is forecast to increase to 40 per cent by 2010.

Average salaries in the sector are £35,168, 44 per cent higher than the UK average and 31 per cent above the manufacturing average. The industry is committed to improved training and skills development and employs 2,593 apprentices.

Research, development and new technology are incredibly important for long-term competitiveness in the aerospace industry. The sector is one of the most R&D intensive sectors in the UK economy and invested £2.5 billion in 2006, including £260 million in early stage research and technology acquisition.

The UK aerospace industry recognises its environmental responsibilities and is committed to helping to deliver a more sustainable aviation sector. In 2006 aerospace manufacturers, alongside its partner airlines, airports and air navigation service providers published a Sustainable Aviation progress report. This highlighted the wide range of activities being undertaken to reduce the sector's impact on the environment.

Despite the continued strength of the UK aerospace industry we cannot afford to be complacent. The industry is now entering a critical period in its development. Increasing globalisation and intense cost pressures are bringing significant change. At home the Ministry of Defence is implementing its Defence Industrial Strategy, bringing the concepts of through life capability management and partnering to industry and the sector itself starting to explore the possibilities for more co-operation in the security and resilience markets.

If the UK is to remain and prosper as a location for these activities and the intellectual property associated with them, it is essential that Government and industry work together to provide the right environment for industrial success. SBAC is fully committed to playing its part in sustaining a globally competitive UK aerospace industry.

Chris Geoghegan
President SBAC & Chief Operating Officer BAE Systems