UK Aerospace Industry Bouncing Back as Orders Come In

The aerospace industry is bouncing back according to a report by A|D|S - the Aerospace, Defense and Security trade organization - published today.

The report shows that revenues for the UK aerospace industry swelled 5.4 percent in 2009 to a combined £22.2 billion.

It comes after last month's encouraging Farnborough Air Show, which was the second most successful show ever for new aircraft orders. The largest single order at Farnborough was from General Electric's leasing company for 60 aircraft from the Airbus A320 family at $4.9 billion.

Graham Chisnall, Managing Director, Commercial Aerospace and Operations at A|D|S, said: "The aerospace sector in the UK is in a strong position. It is number one in Europe and second only to the U.S. globally, employing over 100,000 people across the country and with a turnover in 2009 of £22.2 billion. The strong orders at Farnborough and the optimism of the industry around the Airshow reflects the fact that, despite pressures on the defense budget, the industry is on the up, especially in the UK, buoyed by the recovery of the civil sector.

"This position of British success has been achieved through a combination of factors such as a strong UK presence by major multinational companies, the agility of the sector that in large part is delivered by innovative small and medium sized businesses in the global aerospace supply chain, farsighted historical investment in technology by both industry and Government alongside strong performance in export markets. This recipe for success must continue so that we can maintain the benefits this provides for our economy and to enable the current Government to deliver on its priorities around jobs, rebalancing the economy and increasing UK exports."

The main findings of the report by A|D|S are:

* Aerospace is bouncing back after a tough period following the global recession.

* The UK industry remained resilient and revenues rose by 5.4 percent in 2009 to £22.2 billion.

* A strong performance at the 2010 Farnborough International Airshow (19 – 25 July) saw $47 billion (£31 billion) of orders placed. This was down on the record performance of $88.7 billion of 2008 but up on the previous record of $46 billion from 2006.

* Boeing (29 percent) and Airbus (26 percent) represented the majority of this $47 billion figure.

* The largest single order at Farnborough was from General Electric's leasing company for 60 aircraft from the Airbus A320 family at $4.9 billion.

* Embraer and Sukhoi also had a successful Farnborough 2010.

* The contrast between civil and defense aerospace reflects global circumstances with the civil side recovering at a time when defense budgets are under pressure.

* Growth in both sectors is significant in emerging economies such as the Middle East, India, Brazil and China as also reflected in the 2010 A|D|S aerospace survey.

SOURCE: A|D|S