buglerbilly
13-07-10, 02:30 PM
(Source: ADS; issued July 13, 2010)
A|D|S, the UK’s AeroSpace, Defence and Security trade organisation today (Tuesday) published the findings of its 2010 aerospace industry survey. The report examines the performance of the UK-based sector covering both civil and defence aerospace during 2009.
As in previous years, when the survey was run by A|D|S predecessor organization SBAC, the results provide a definitive picture of the overall UK-based aerospace sector and are used by Government and analysts alike.
Ian Godden, Chairman of A|D|S, said:
“Last year was tough for the whole aerospace industry given the wider context of the global downturn but these results demonstrate the resilience of the UK-based part of the sector. Overall this is an extraordinary performance during a world-wide recession with an increase in revenues, a rise in productivity and stability within our 100,000-strong highly-skilled workforce.
“The UK aerospace sector remains number one in Europe and second only to the US globally. Our industry consists of over 2,600 high-value manufacturers and service providers, large and small with a nationwide footprint. It is still very competitive worldwide, illustrated by the fact that two thirds of our revenues come from exports and our productivity continues to improve at a consistent long-term annual rate of six per cent. We are boosting the UK economy at a time of great need and there is further potential for growth in our sector, assuming we receive bold and high level support from the UK Government. This support will be crucial to compete with other powerful nations who are ambitious to take a growing share in this attractive growth market.
“However, this current UK success and the strength to ride out the worst of the recession are based on long-term, sustained investment in the past especially in R&D and workforce development. A decline in such investment over the past two years in our surveys is a cause for concern, especially in the context of further cuts anticipated in defence. Although the downwards trend in R&D spending is somewhat expected in the short term during a recession, the industry will have to reverse this now that the economy is showing signs of picking up.”
Headline survey findings are as follows:
* Revenue up 5.4 per cent to £22.2 billion, with defence accounting for 52 per cent of this figure or £11.6 billion and exports responsible for 70 per cent of overall turnover.
* Workforce levels steady at just over 100,000.
* Orders down 10.4 per cent, but at a lower level of decline than in 2008, at £32.2 billion.
* Research and development spending down 7.4 per cent to £1.74 billion reflecting a global trend during the downturn.
* Exports to the ‘rest of the world’ and the EU grew by 20 and 10 per cent respectively.
* Aerospace defence exports grew by 15 per cent to £6.68 billion.
* Overall sales to the US, mainly in defence, fell by 20 per cent.
* Productivity per employee up 6.2 per cent.
* Improving global predictions of new aircraft sales were reflected in a 27 per cent rise in systems and frames sales at £14 billion.
* Encouragingly, the number of young people studying industry-related subjects rose by 6 per cent. This is crucial for the long-term health of the sector given the UK industry employee’s average age is 54.
BACKGROUND NOTES:
1. The 2010 A|D|S annual survey can be found at http://tinyurl.com/adssurvey2010.
2. The 2009 survey can be found at
http://www.sbac.co.uk/community/cms/content/preview/news_item_view.asp?i=19665.
A|D|S is the trade organisation advancing UK AeroSpace, Defence and Security industries with Farnborough International Limited as a wholly-owned subsidiary. A|D|S also encompasses the British Aviation Group (BAG). It is formed from the merger of the Association of Police and Public Security Suppliers (APPSS), the Defence Manufacturers Association (DMA) and the Society of British Aerospace Companies (SBAC).
-ends-
A|D|S, the UK’s AeroSpace, Defence and Security trade organisation today (Tuesday) published the findings of its 2010 aerospace industry survey. The report examines the performance of the UK-based sector covering both civil and defence aerospace during 2009.
As in previous years, when the survey was run by A|D|S predecessor organization SBAC, the results provide a definitive picture of the overall UK-based aerospace sector and are used by Government and analysts alike.
Ian Godden, Chairman of A|D|S, said:
“Last year was tough for the whole aerospace industry given the wider context of the global downturn but these results demonstrate the resilience of the UK-based part of the sector. Overall this is an extraordinary performance during a world-wide recession with an increase in revenues, a rise in productivity and stability within our 100,000-strong highly-skilled workforce.
“The UK aerospace sector remains number one in Europe and second only to the US globally. Our industry consists of over 2,600 high-value manufacturers and service providers, large and small with a nationwide footprint. It is still very competitive worldwide, illustrated by the fact that two thirds of our revenues come from exports and our productivity continues to improve at a consistent long-term annual rate of six per cent. We are boosting the UK economy at a time of great need and there is further potential for growth in our sector, assuming we receive bold and high level support from the UK Government. This support will be crucial to compete with other powerful nations who are ambitious to take a growing share in this attractive growth market.
“However, this current UK success and the strength to ride out the worst of the recession are based on long-term, sustained investment in the past especially in R&D and workforce development. A decline in such investment over the past two years in our surveys is a cause for concern, especially in the context of further cuts anticipated in defence. Although the downwards trend in R&D spending is somewhat expected in the short term during a recession, the industry will have to reverse this now that the economy is showing signs of picking up.”
Headline survey findings are as follows:
* Revenue up 5.4 per cent to £22.2 billion, with defence accounting for 52 per cent of this figure or £11.6 billion and exports responsible for 70 per cent of overall turnover.
* Workforce levels steady at just over 100,000.
* Orders down 10.4 per cent, but at a lower level of decline than in 2008, at £32.2 billion.
* Research and development spending down 7.4 per cent to £1.74 billion reflecting a global trend during the downturn.
* Exports to the ‘rest of the world’ and the EU grew by 20 and 10 per cent respectively.
* Aerospace defence exports grew by 15 per cent to £6.68 billion.
* Overall sales to the US, mainly in defence, fell by 20 per cent.
* Productivity per employee up 6.2 per cent.
* Improving global predictions of new aircraft sales were reflected in a 27 per cent rise in systems and frames sales at £14 billion.
* Encouragingly, the number of young people studying industry-related subjects rose by 6 per cent. This is crucial for the long-term health of the sector given the UK industry employee’s average age is 54.
BACKGROUND NOTES:
1. The 2010 A|D|S annual survey can be found at http://tinyurl.com/adssurvey2010.
2. The 2009 survey can be found at
http://www.sbac.co.uk/community/cms/content/preview/news_item_view.asp?i=19665.
A|D|S is the trade organisation advancing UK AeroSpace, Defence and Security industries with Farnborough International Limited as a wholly-owned subsidiary. A|D|S also encompasses the British Aviation Group (BAG). It is formed from the merger of the Association of Police and Public Security Suppliers (APPSS), the Defence Manufacturers Association (DMA) and the Society of British Aerospace Companies (SBAC).
-ends-