Our experience in the aerospace and defence industries has been built up over many years by serving the needs of our clients within these sectors. Many of our clients within these industries are manufacturers, but we also have clients from ancillary industries that supply these sectors and are concerned about the impact of the coronavirus pandemic and the long term prosperity of these sectors.
The UK’s aerospace sector is world-leading, generating well-paid jobs, high-tech exports and sustainable growth. In 2019 the industry boasted exports of £31.8bn with 90 per cent of domestic aerospace production being exported, including engines, helicopters, wings, structures, and aircraft systems.
However, in 2020, many businesses within the aerospace sector saw unprecedented falls in demand due to restrictions on travel caused by the Coronavirus pandemic. Civil aircraft fleets other than transport aircraft have largely been grounded by operators as a result. The pandemic continues to impact the industry’s people, finances and supply chains and recovery is likely to be gradual as governments ease travel restrictions.
The UK defence industry is the second largest defence exporter in the world and delivers the vital equipment and services our armed forces and security services need to safeguard national security.
The sector has been more protected throughout 2020 due to budgeted government spending, but environmental pressures, skills shortages and technological innovation all remain high on the agenda with cyber threats a particular concern to the industry.
What does the future hold for the aerospace and defence industries?
The unprecedented drop in demand seen during 2020, particularly within the commercial aerospace industry, means that the focus for many will be on reducing costs, restructuring and strategic changes to supply chains. Consolidation within the industry, in the short term, is inevitable.
Meanwhile, the defence sector is expected to remain comparatively stable, with government continuing to use defence spending as part of its fiscal response to Coronavirus and Brexit.
Despite recent challenges, growth prospects still remain for the aerospace & defence industry, many of which will focus on technological developments relating to sustainability. Businesses within the industries continue to explore fuel efficiency, electric propulsion systems and hydrogen powered aircraft, and these technological advancements will no doubt be supported by government, with the Net Zero by 2050 target in mind.
We organise a variety of aerospace and defence industry events including seminars and round table discussions. These events are regularly run in partnership with ADS Group, and focus on topical challenges that businesses within the industries are facing. Our clients are invited to these events, therefore gaining access to a forum where we encourage and facilitate the sharing of ideas to combat sector specific issues.
Our aerospace and defence team
We have a national team dedicated to the aerospace and defence industry which enables us to understand the challenges that businesses within the industry are facing. In recent times, our clients have been hugely impacted by a combination of Coronavirus and Brexit. In the longer term, we anticipate the industry will increasingly focus on sustainability, lowering emissions and the government’s Net Zero by 2050 target.
Our relationship with the Aerospace Defence and Security Group enables us to focus on what’s challenging businesses within these sectors, whether it’s the ongoing issues brought about by Coronavirus, the continued disruption caused by Brexit or the role that government can play in securing future prosperity.