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BIS Report: UK aerospace Supply Chain Study

The Department for Business, Innovation and Skills has released a report on a commissioned study to assess the opportunities and barriers in the UK aerospace supply chain.

In 2015, the UK aerospace industry employed 116,000 people and generated a revenue of nearly £29bn. Gross value added grew on average by 4% between 2009 and 2015, compared with 2% for the manufacturing industry as a whole, and 1% for the whole economy.

A forecasted demand of 33,000 new aircraft is required to meet the growing global aviation traffic demand by 2034 (worth over $5 trillion).

To ensure the UK has a major stake in future aircraft programmes, the aerospace supply chain must continue to offer high quality products to be globally competitive.

 

The outputs from the study identified the following:

·      Overall, the UK aerospace sector is growing, but it is not keeping pace with global growth;

·      There is a shortage of manufacturing and advanced technology skills in the UK;

·      New aircraft programmes and technologies can be a major opportunity, but the UK is not well positioned to access this opportunity;

·      A lack of advanced manufacturing and lean supply chain management is leading to lack of global competitiveness;

·      Lower-tier companies may lack the management structure and processes required to achieve growth;

·      Prime contractors and lower tier suppliers have different views on the barriers to growth in the global market;

·      Strong support for early-stage product development is available, but less so for late-stage development.

Download the full study here.

 

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