- Rising global demand could generate almost £500bn in orders for the UK
- UK’s long term strategy attracting inward investment driving growth of high value activity-
A report released today at the start of the Paris International Airshow 2013 highlights the significant opportunity for the UK civil aerospace industry as passenger air traffic increases driving huge demand for new aircraft. With UK industry currently accounting for 17 per cent of the global market, projections show this increased demand could translate into orders worth £474bn between now and 2031.
The study, commissioned by aerospace defence trade organisation ADS and conducted by KPMG’s Aerospace team highlights the significant investment UK industry has seen, including most recently a joint industry and Government £2bn investment to establish an Aerospace Technology Institute (ATI). The ATI will support the development of the technologies of tomorrow, focused on the UK’s world leading capabilities in aerodynamics, propulsion, aerostructures and advanced systems.
Paul Everitt, chief executive of aerospace trade organisation ADS Group commented: “The UK aerospace industry is strong and prospects for the future are promising. The formation of the Aerospace Growth Partnership and the resulting long-term investment is a strong signal that both Government and industry are focused on to maximising the opportunity from rapid global growth. Now, the priority is to deliver on that commitment to support businesses throughout the supply chain, increase innovation and invest in skills to help ensure the sector’s long-term global competitiveness.”
The aerospace industry – a summary
The UK currently has a 17% global market share and is second only to the US globally
The UK exports 75% of what it produces, generating almost £12bn in revenues
There is an expected global demand for 27,000 new passenger aircraft and 40,000 rotorcraft between now and 2031
The Aerospace Technology Institute could secure up to 115,000 jobs in the sector
High growth economies account for 45-60% of this new demand which is estimated to be worth $4.5tn
The UK civil aerospace sector is made up of over 3,000 companies and around 230,000 direct and indirect employees. Its extensive yet integrated supply chain and world leading skills make it an attractive market for inward investment. Advanced manufacturing techniques and a focus on driving innovative solutions to customer requirements is igniting an appetite among some companies to on-shire high value activity back to the UK. This in turn will further strengthen the UK industry, strengthening supply chains, building more high level skills and ultimately increasing the contribution of the sector to the economy.
Sarah Owen-Vandersluis, Director, KPMG Aerospace and Defense Strategy commented: ‘As one of the most dynamic sectors in the UK, civil aerospace is well positioned for strong future growth in the UK and overseas. Building from a position of strength, the UK Civil aerospace sector and the government have joined to develop a framework to support a long term industrial strategy. This makes the UK highly attractive for inward investment, whether it be through R&D, a proven supply chain or favourable tax environment. This is critical in an increasingly global supply chain.”
ADS Group is hosting the UK Pavilion at the Paris International Airshow in Hall 2B. 70 UK companies will be exhibiting within the UK Pavilion.
For more information and photos please contact
ADS Press Office
Tel: +44 (0) 7827 309 732
KPMG Press Office
Tel: +44 (0) 7584 884734
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Notes to Editors:
ADS is the premier trade organisation for all companies operating in the UK Aerospace, Defence, Security and Space sectors. Farnborough International Limited (FIL) which runs the Farnborough International Airshow, is a wholly owned subsidiary. For more information see www.adsgroup.org.uk
‘The Future of Civil Aerospace: A study on the outlook for the UK civil aerospace manufacturing sector’ was commissioned by aerospace trade organisation, ADS, and conducted by KPMG. In compiling the report, KMPG spoke to 19 stakeholders, including prime contractors, SMEs and Government departments.
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services