🎧Aerospace delivers decade of ‘staggering’ growth

ADS Group’s latest annual report shows bullish growth across the aerospace, defence, security and space sectors, with aerospace, in particular, continuing to rebound strongly from the pandemic. These industries contributed £38.2bn in gross value add (GVA) to the UK economy, a sizeable increase from £37bn the previous year and almost 20% of total manufacturing GVA. Turnover rose to £88.4bn, up from £82bn, and exports to £38.7bn, compared to £36bn. Direct employment also experienced a sizeable uptick, reaching 427,500 jobs, up from 417,000.

As uplifting as these year-on-year increases are, the true scale of expansion becomes more apparent when viewed over a somewhat longer period. For the first time, the 2024 report includes ADS’ analysis of how the UK aerospace, defence, security and space sectors have performed over the past decade.

Between 2013 and 2023, these industries delivered ‘truly staggering’ growth, as described by one spokesperson: GVA increased by 50%, turnover by 40%, exports by 32% and employment by 29%. That the past decade has been marked by frequent disruption, downturns and delays makes this more remarkable.

Aimie Stone, Chief Economist at ADS, says this success is due to aerospace, defence, security and space is reliant on a highly skilled workforce, a strong culture of innovation and the rapid development and adoption of new technologies and techniques.

WORLD-LEADING R&D

The Aerospace Technology Institute (ATI), for example, plays a pivotal role in advancing the UK’s global reputation for innovation. Celebrating its 10th anniversary in 2024, the strategic partnership between industry and government has a particular focus on cleaner and greener air travel. 

Since its creation, the ATI programme has allocated £3.6bn of joint government-industry funding to more than 400 aerospace R&D projects across the UK. Notable successes include the Rolls-Royce UltraFan demonstrator engine, which reportedly boasts a 10% efficiency improvement over the Trent XWB, the world’s most efficient engine in service today.

Another key initiative is the Airbus-led Wing of Tomorrow programme, which is developing the next generation of carbon composite aircraft wings. A new Wing Technology Development Centre (WTDC) recently opened in Bristol and is now working in parallel with Filton’s existing Aerospace Integrated Research and Technology Centre (AIRTeC), which opened in 2021.

Other research facilities that have benefited from substantial ATI investment include the Osney lab in Oxford, the new Whittle Lab in Cambridge and the National Centre for Combustion and Aerothermal Technology in Loughborough.

Alongside supporting global OEMs, the ATI is also helping nurture the UK’s thriving ecosystem of SMEs, such as ZeroAvia, developing hydrogen-electric engines for zero-emission flight. Reflecting on the 10-year milestone, Val Miftakhov, Founder and CEO of ZeroAvia, says the ATI’s impact on advancing zero-emission hydrogen engines within the industry is of ‘huge importance.’

He says this will not only help deliver “a clean future for flight” but predicts it will bolster the UK’s ability to “capture more exports as the world becomes reliant on cleaner propulsion technologies.”

SOARING EXPORT GROWTH

Strong export performances underpin growth, generating nearly half of the combined turnover. The security sector has seen tremendous export growth of 228% since 2013, demonstrating the growing global demand for the UK’s cutting-edge security technologies and solutions.

Geopolitical tensions and proliferating international security challenges have also heightened demand for advanced military equipment and cybersecurity measures. The UK has established itself as a leading developer of high-tech defence systems, whether on land, sea, beneath the waves or in the air – manned, partially unmanned or fully autonomous. This strategic positioning has led to a substantial 28% year-on-year increase in defence exports.

ADS’ Aimie Stone expects defence exports to continue to grow, driven by the UK’s continued strengthening relations with the EU, collaborative efforts with NATO allies and participation in major international programmes such as AUKUS and the Global Combat Air Programme (GCAP).

Rising passenger demand for long-haul travel and renewed interest from airlines in updating their fleets with more fuel-efficient and technologically advanced aircraft have seen record-breaking global orders for widebody aircraft – up 169% in 2023 compared to 2022. This trend will bring significant benefits to the UK, says Stone, as almost 20% of the value content of widebody aircraft comes from the UK, with engines and wings representing the largest share.

One company reaping the benefit is Arrowsmith Engineering, whose overseas sales have rocketed by nearly 400% following the pandemic and now account for a third of its £8.3m turnover. Precision components manufactured at its Coventry factory are shipped to customers in Brazil, China, France, Germany, Singapore and Spain for use in aerospace engines, landing gears and airframes.

Shortly after receiving its second King’s Award for International Trade earlier this year, Arrowsmith Engineering announced a string of new contract wins, resulting in the largest order book in its 57-year history. According to Jason Aldridge, Managing Director, investments in new technology and robotics, along with the creation of 10 new jobs, have provided the capacity and capability to win work against much larger rivals.

The company recently expanded its capacity further with the delivery of two additional dual spindle Lynx 21000ISLYA/B CNC machines from Mills. This follows the success of its installed 5-axis DVF5000 and 4-axis DNM4500 cobot systems.

A LONG-TERM VISION

Another transformative opportunity for the UK lies in the rapidly expanding global space economy, where the country has already established itself as a world leader across multiple domains. Bolstered by technological innovations and strategic investments – both public and private, the UK is poised to unlock new capabilities and skills in launch capabilities, satellite communications, surveillance and reconnaissance, position, navigation and timing (PNT), in-orbit services and manufacturing, among others.  

Ensuring space exploration and operations are sustainable is a key focus, as it is across aerospace, defence and security. Efforts are underway to develop cleaner propulsion technologies for satellite launches and to tackle the escalating challenge of space debris.

ClearSpace, for instance, intends to do just that through its CLEAR Mission, funded under the UK Space Agency’s national debris removal programme. The company plans to deploy its novel robotic capture system to safely remove two obsolete, washing-machine-sized UK satellites from orbit. By leveraging advanced technologies to mitigate the risks posed by space debris to satellites and crewed space stations, ClearSpace aims to ensure cleaner, safer and more sustainable space orbits.

Space and sustainability are central themes for Farnborough International Airshow (FIA) 2024, alongside innovation, defence, skills and future flight. FIA provides a crucial platform to showcase the UK’s aerospace, defence, security and space capabilities to a global audience, and holds tremendous political importance. Even more so this year.

FIA 2024 is scheduled just two weeks after a general election, which could bring a change of government. This shift brings new uncertainty at a critical time. Recent government commitments indicate a growing intent to develop a new generation of aircraft, defence systems and space technologies, supporting thousands of high-skilled jobs nationwide.

The UK has untold opportunities to develop and expand its existing strengths, from additive manufacturing and lightweighting to decarbonisation and the use of quantum computers for threat mapping. Given the political instability the country has experienced of late, it’s imperative that the party in power acknowledges the international attention FIA receives and harnesses it to send a clear signal to industry and the global community that the UK takes these opportunities seriously.

Uncertainty and ambiguity often spook markets, notes ADS’ Aimie Stone, adding that while the UK may not match other nations in funding levels, it can surpass them with a clear, robust and long-term strategy. Reflecting on the past 10 years, the UK aerospace, defence, security and space sectors have made remarkable progress. Looking ahead to the next decade and beyond, the stage is set for the UK to build on these achievements. And the time to start is now.