EY: Defence sector faces supply and workforce challenges
The lingering effects of the Covid pandemic have left supply chains in a state of disarray, posing significant challenges, especially within the defence and engineering sectors, said Nick Compton, EY UK&I Aerospace and Defence Leader.
Workforce shortages have exacerbated these issues, hindering recovery and growth.
“The supply chains have still not recovered post Covid, there is a real challenge with the workforce, particularly in the defence sector and engineering,” he told Aerospace Global News at the Farnborough International Airshow 2024.
“A lot of the big production areas were mothballed or simply just put on hold over the last 10 or 15 years because there has not been that demand. So how you ramp that up and change that is really important.”
He added: “The pivot to new technologies is needed not just to meet current demand more efficiently but also to meet the evolving needs and expectations of their customers.”
The task of revitalising these sectors is complex. Restarting and scaling up production requires substantial investment in both infrastructure and human resources.
Workforce development is particularly critical, as skilled labour shortages threaten to delay recovery efforts. Retraining programmes and initiatives to attract talent back into these fields are essential.
