2 minute read - 1st July 2024
Aerospace sector confidence strong as eyes turn to Farnborough Airshow for new orders
The latest monthly figures released by ADS Group, the trade association for aerospace, defence, security and space organisations, show continued confidence as the sector heads for the Farnborough International Airshow (FIA), which takes place between 22nd and 26th July.
Ahead of the biannual airshow, ADS said 79% fewer aircraft orders were placed in May 2024 than in May 2023, so year-to-date orders are now 14% behind the same point last year. This contrasts with orders in the first four months of the year, which were tracking 16% above the same period in 2023, highlighting the expection of announcing new orders at FIA.
Figures from the trade association show that confidence in the sector remains strong, with a healthy order backlog of 15,694 – 17% ahead of the equivalent period in 2023.
Sector confidence remains strong in the aerospace sectors as it gears up for the Farnborough International Airshow / Picture: Farnborough International
Greater international travel has increased demand for wide-body aircraft, with ADS figures noting a 118% increase in May 2024, compared to May 2023. The 24 wide-body aircraft orders in May 2024 further fuel a wide-body backlog of 2,294. The 7 single-aisle aircraft ordered in May 2024 represents a 95% decline when compared to May 2023.
Aimie Stone, chief economist at ADS, said: “While these numbers may seem concerning at a first glance, detail and context reveal that the continued confidence within our sector remains justified. Farnborough International Airshow is the single biggest and most prestigious event for the aerospace sector, and its role as a place for big business to be done and announced is well understood amongst companies. This means we anticipate falling order rates, in an otherwise buoyant sector, are simply a reflection of the sector’s collective desire to make their orders at this flagship event.”
The latest order figures are released ahead of Farnborough International Airshow alongside ADS’ Aerospace Sector Outlook, showcasing a value add of £10.9bn to the UK economy, an increase of 16% compared to 2013 figures. The figures highlight 104,000 direct jobs in the aerospace sector, with a median salary of £48.7k – 39% higher than UK average, with the vast majority (88%) located outside of London and the Southeast.
You can read the article and reports on Zenoot here: Aerospace, defence, security and space sectors worth £38.2bn to the UK economy
