1 minute read - 26th June 2023
Aerospace sector sees significant increase in orders
The UK’s aerospace sector is continuing to show its resilience in the midst of supply chain challenges and following a muted Q1 outlook, according to the latest aircraft orders and deliveries report compiled by ADS. The 146 aircraft orders placed in May 2023 is a 306% increase on the 2022 figures, as ADS says confidence in the UK aerospace sector continues to grow. Deliveries increased 38% over the same time period.
The current backlog of aircraft orders is 13,406 aircraft, a positive marker for the health of the sector. The potential value add of this backlog to the UK economy could exceed £205bn, representing several years worth of work.
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The aerospace sector recovery continues with a 306% YoY order increase in May this year compared to May 2022 / Picture: Getty/iStock
Aimie Stone, chief economist at ADS Group, said: “The staggering year-on-year increase in aircraft orders highlights growing confidence in the aerospace sector. While the sector is not expected to reach post-pandemic levels until 2024, the 38% year-on-year growth in aircraft deliveries highlights its resilience and is a positive health check in the midst of increased supply chain challenges.”
In addition to the May figures, the Paris Air Show 2023 generated aircraft deals worth a projected value of $155bn. The value of firm aircraft deals to the UK is estimated to be worth up to £13.6bn at published list prices and assumed content of production.
The latest figures published by ADS Group showcase exports from the UK aerospace sector being worth £18.6bn in 2022. ADS added that it highlights that businesses in the UK’s aerospace sector generate £27bn in turnover, with value add to the UK economy worth £10.9bn.