The latest data released by ADS Group underscores the significant contribution of the aerospace, defence, security, and space sectors to the UK economy, revealing a substantial growth trajectory over the past decade.
In 2023, these sectors collectively added £38.2 billion in value to the UK economy, marking a remarkable 50% increase since 2013. Turnover for businesses within these sectors also saw substantial growth, rising by 40% to reach a combined £88.4 billion in 2023. Notably, nearly half of this turnover was generated through exports, amounting to £38.7 billion, reflecting a 32% growth since 2013.
Employment within these industries has seen a significant rise, with a 29% increase since 2013, totaling 427,500 jobs in 2023. Of these, 23,000 are apprenticeships, underscoring a commitment to fostering skills and development across the UK. Importantly, two-thirds of these jobs are located outside of London and the South East, contributing to regional economic diversity.
Kevin Craven, CEO of ADS Group, emphasized the broader impact of these sectors beyond economic metrics, stating, “Our industries are integral to UK advanced manufacturing and innovative digital services, underpinning our society and way of life.”
Aimie Stone, chief economist at ADS Group, highlighted the resilience and ongoing growth despite global challenges such as the pandemic and critical skills gaps. She noted that productivity per worker in these sectors averages £89,300, significantly contributing to the overall economic output.
Looking ahead, ADS Group’s 2024 Aerospace Sector Outlook forecasts continued growth, with an anticipated £10.9 billion in value add to the UK economy, representing a 16% increase from 2013 figures. The aerospace sector alone supports 104,000 direct jobs, with a median salary of £48.7k, notably higher than the national average, and predominantly situated outside of London and the Southeast.
The defence sector, integral to national security and prosperity, has similarly shown resilience and growth, generating 164,000 jobs with an average salary of £39.9k, 14% above the UK average.
Kevin Craven concluded, “The true value of our defence sector in safeguarding the UK’s safety and security cannot be overstated.”
In summary, the ADS Group’s latest figures underscore the robustness, resilience, and substantial economic impact of the aerospace, defence, security, and space sectors, positioning them as crucial pillars of the UK economy and innovation landscape.