ADS Group: UK aerospace sector “remains healthy” despite 71% drop in orders
Reflecting on the aircraft orders placed in the first six months of 2024, the ADS Group believes that the sector remains “healthy” despite a total “down significantly” on H1 2023; with this year’s slower deliveries continuing to be impacted by supply chain challenges.
283 aircraft were ordered in the first half of this year, down from the “record-high” order book for the same period of last year, reveals the trade association for the UK’s aerospace, defence, security and space sectors. This equates to a fall of 71%, while deliveries were also down by 14% in the same period. However, with the exception of 2023, aircraft orders in the first half of 2023 still remain at their highest level since 2018.
“2023 was a record-breaking year for aircraft orders and deliveries, and the first half of 2024 has only fallen slightly behind 2023 delivery rates,” explained Aimie Stone, chief economist at ADS. However, she revealed that analysis of the last decade’s data indicates “long-term resilience within the UK aerospace industry, as well as increasing productivity levels”.
The 14% fall in delivery relates is attributable to ongoing global supply chain constraints, highlighted ADS, with Stone continuing: “Intelligent support from Government to tackle issues in the supply chain, cash flow and capacity constraints has the potential to turbo-charge more long-term growth in this sector, providing significant benefits to the economy for the future”.
The total 15,668 global aircraft order backlog us worth up to £247 billion for the UK economy and while overall orders may be down, the backlog’s total value to the UK is 8.3% higher than the same point in 2023, “reflecting general sector confidence”. ADS’ Aerospace Sector Outlook also highlights the £10.9 billion of economic contribution of UK aerospace in 2023, something that has increased 16% since 2013.
