Summary
The UK aerospace industry is currently the second largest in the world, with a turnover in 2004 of $31.8 billion. This represents approximately 13% of the worldwide aerospace market. The sector is forecast to grow by 8% per year from 2003 to 2008 largely due to the growth in the Maintenance, Repair and Overhaul (MRO) market. Increasing demand for air travel underpins this growth, despite high global oil prices. For example, air transport movements at UK airports increased by 5% from January 2005 to January 2006.
The UK is home to several leading British and European companies in the sector, including BAE Systems, Rolls-Royce and Airbus. Defense aerospace represents much of this sector's activity, driven by projects such as Eurofighter Typhoon and F35. Global defense sales of $16.2 billion account for just over half of the industry's output. However, civil aerospace turnover rose to $15.6 billion in 2004 and is expected to continue to grow in the coming years.
U.S. manufacturers are well represented in the UK, including Honeywell, Raytheon, Rockwell Collins, Lockheed Martin and Goodrich. Transatlantic relations are critically important to the UK aerospace sector. According to the Society of British Aerospace Companies (SBAC), UK aerospace companies employ over 30,000 people in the U.S. and are responsible for creating over $6.6 billion in revenue annually. Similarly, around one-fifth of SBAC's members are U.S.-owned. In 2005, U.S. companies exported $5.2 billion in aerospace products and parts to the UK, the highest level since 2001. Aircraft, propulsion, and aircraft parts comprise the great majority of these exports.
Market Demand
Aerospace is an im ...