The outlook for the UK aerospace sector remains strong, with order books at record levels, according to a new report from Santander and the manufacturers’ organisation EEF. Continued growth in air travel, particularly in emerging economies, as well as demand for high-tech parts for spacecraft, rockets and satellites, is expected to fuel growth in the sector. The UK is said to be the second-largest aerospace manufacturer in the world (behind the USA) and the world’s fourth-largest aerospace exporter. The report says that the UK aerospace sector employs 107,000 people and comprises around 2,400 separate businesses — a four-fold increase since 2008. More than half (53%) of its gross value added is exported, and its exports were worth more than £28 billion in 2016 — the highest figure of any UK manufacturing sector.

Paul Brooks, head of business development (manufacturing) at Santander Corporate & Commercial, said: “The UK’s aerospace industry has thrived off the back of its competitive advantage in the production of high-value-added technology-intensive products, and we forecast that this will continue, given that the UK is hard-wired into the global supply chain. The UK aerospace industry has more than doubled its overseas sales since 2002 — from £13.2 billion to £28.3 billion.”

George Nikolaidis, senior economist at the EEF, said: “The aerospace sector highlights another great UK manufacturing success story. By staying at the forefront of cutting-edge technologies, aerospace manufacturers have managed to retain a high share of the global market, despite fundamental changes in international value chains. There are risks ahead, but the sector looks well positioned to harness these challenges and remain a key player in the global aerospace industry.”