The UK’s aerospace and defence industries are key players in global markets and are major contributors to the UK economy, through manufacturing and research into new technologies. This industry is continuing to grow and is second in the world behind the USA. Civil air traffic is also expected to grow at 5% per annum in the longer term. 

This sector is defined by SIC92 (Standard Industrial Classification) code 35.3, which is the ‘Manufacture of aircraft and spacecraft’, but also includes the ‘Maintenance, repair and overhaul sector’.  This is defined as; engine overhaul; airframe heavy checks; component maintenance; line maintenance; and major airframe modifications.

Growth markets include:

• the coordination of design, technology, delivery and support at a global level
• composite materials technologies
• computer modelling and simulation
• electronic components and integrated systems
• more efficient, quieter engines
• mechanical and electrical sub-systems
• space systems
• aerostructures for regional and business jets

Although aerospace accounts for just 1% of all engineering firms, these firms employ 7% of all Engineering employees in the industry. Total UK aerospace employment is estimated to be around 122,000 employees. 84% of the total UK aerospace employment is in England. 150,000 people are also employed indirectly within the UK and 30,000 in the US. 

The industry has over 700 workplaces and, in addition, there are approximately 400 Maintenance, Repair and Overhaul sites. Over two thirds of all employees work for the 5% of companies that have over 500 employees. 5% of employees work for companies with less than 50 employees. Some 55% of aerospace establishments employ apprentices or other recognised trainees compared with 36% for the whole of engineering.

Geographically, the majority of aerospace employment is located in England, with main concentrations in the North West, East Midlands and the South West. Wales, Scotland and Northern Ireland all have similar levels of aerospace employment. Workplaces are concentrated in the South East, South West and East of England with over half of Maintenance, Repair and Overhaul sites in the East of England and the South East.

Aerospace companies in England (33%) had the most difficulty with hard-to-fill vacancies. Vacancies are greatest for professional engineers, skilled trades and machine operatives.  Hard-to-fill vacancies are the result of a low number of applicants with the required skills and qualifications, or work experience.

Aerospace companies in Scotland (33%) and Northern Ireland (32%) were most affected by skills gaps. Skills gaps were mostly found at management, professional, craft and operator/assembler levels. Skills gaps for technical engineering skills (75%) were the most significant, particularly for general engineering skills.

The aerospace industry has a tradition of high-level skills requirement with over 30% of employees educated to degree standard or equivalent and more than 11% involved in research and development. There will be an increase in demand for the professional and associate professional occupations (which include professional engineers and technicians). The supply of suitably qualified new entrants is unlikely to be sufficient to meet needs. This means focusing on up-skilling the current workforce. Overall, the occupational profile of this industry is similar to that of engineering as a whole in the UK.

Future skill requirements include:

• an increased need for higher-level skills to support emerging technologies, particularly for lessening environmental impacts
• developing leadership and management skills to global standards
• software systems, systems design and modelling, advanced manufacturing design and simulation, advanced electrical systems design
• increasing licensed engineers in Maintenance, Repair and Overhauls
• advanced materials engineering (lightweight, smart, electric and magnetic materials)
• diagnostic and prognostic techniques.

Future trends are focused on:

• the increase of companies actively considering moving investment abroad due to lower labour costs
• the use of modern management practices to increase profitability and investment
• improving skills and innovation to boost investment
• improving the image of the sector and improving careers advice
• increasing work experience opportunities for graduates and funding for postgraduate qualifications
• developing teams capable of rotating jobs and the synchronisation of production
• increasing productivity and maintaining the position of UK aerospace within the global supply chain
• increasing the percentage of graduates from 30% to nearly 50%
• implementing process excellence throughout the value chain
• promoting faster and leaner product development processes

Source: SEMTA 2006

For further information on current and predicted employment levels in aerospace together with occupations distribution and net requirements in the industry see: