3 minute read - 26th June 2024
Aerospace, defence, security and space sectors worth £38.2bn to the UK economy
The latest figures published by ADS Group reveal that the aerospace, defence, security and space sectors added £38.2bn in value to the UK economy in 2023, a growth of 50% in the last 10 years. According to the trade association, figures highlight a 40% growth in turnover for businesses in these sectors, reaching a combined £88.4bn in 2023. With almost half of industry turnover generated through exports, ADS figures also highlight a 32% growth in exports.
Employment across aerospace, defence, security and space is up a third (29%) on 2013 figures, reading 427,500 in 2023. Of these jobs, 23,000 are apprenticeships, with two thirds of jobs located outside of London and the South East.
Ahead of the Farnborough International Airshow (taking place 22-26 July), ADS has also published its 2024 Aerospace Sector Outlook, showcasing an expected future value add of £10.9bn to the UK economy, an increase of 16% compared to 2013 data. The figures highlight 104,000 direct jobs in the aerospace sector, with a median salary of £48,700 – 39% higher than UK average, with the vast majority (88%) located outside of London and the Southeast. ADS also said productivity per worker now totals £104,800.
The aerospace, defence, security and space sectors are worth £38.2bn to the UK, an increase of 50% in the last 10 years, according to a new report by ADS | Picture: Getty/iStock/Ricky Deacon
The UK’s defence sector has continued to remain agile considering an increasingly challenging geopolitical environment, as highlighted by the publication of the 2024 Defence Outlook from ADS. The sector generates 164,000 jobs in the UK, with that number having grown 16% between 2013 and 2023. The average salary in the sector is £39,000, 14% higher than the UK average.
Kevin Craven, CEO of ADS Group, said: “ADS sectors are at the heart of UK advanced manufacturing and innovative digital services. Our true value extends beyond our economic footprint, underpinning UK society, families and our way of life. Our latest publication highlights a 50% increase in the value add they have contributed to the UK over the last ten years. Providing 427,500 jobs throughout the UK – an increase of one third on 2013 figures – our industries deliver on UK prosperity and innovation, providing a hub for advanced manufacturing, and driving our decarbonization agenda.”
The defence sector added £12bn to the UK economy in 2023, up 36% in the last decade and currently employs 164,000 people | Picture: Getty/iStock/Brian Smith
Aimie Stone, chief economist at ADS Group, added: “The latest figures reflect the continued buoyancy, resilience and economic resolve that our sectors continue to deliver to the UK. Despite a global pandemic stalling manufacturing productivity, an ongoing critical skills gap, and demand outstripping capacity, we are still seeing strong long-term growth indicators as we continue through 2024. With average productivity of £89,300 per worker, over 400,000 jobs created and exports worth almost £39bn, the immense value of these sectors for the UK economy is simply undeniable.”
You can download the full reports below:
