UK AEROSPACE SURVEY (0) The survey is produced by Mike Lee, Head of Market Intelligence

Transcription

1 UK AEROSPACE SURVEY The survey is produced by Mike Lee, Head of Market Intelligence ADS Group Limited Salamanca Square 9 Albert Embankment London SE1 7SP enquiries@adsgroup.org.uk () ADS7625 7/12

2 ABOUT ADS ADS is the Premier Trade Organisation for all companies operating in the UK Aerospace, Defence, Security and Space sectors. Farnborough International Limited (FIL) which runs the Farnborough International Airshow, is a wholly owned subsidiary. ADS operates to create the best possible climate in which its Members can do business, including lobbying and media relations work alongside networking and other business-to-business activities. ADS offers a wide range of products and services to help Member companies grow their businesses and widen their contact networks with the wider supply chains in all relevant sectors, including UK Government departments and in export markets. A dedicated team of events specialists co-ordinate and manage a comprehensive events programme encompassing everything from large international trade shows through to table top events and specialist networking breakfasts and lunches. ADS organises many seminars and events to help Members build their export market knowledge and their contact networks. ADS also provides world-class advice on export licensing, all forms of offset, anti-corruption and ethical issues.

3 CONTENTS About ADS 3 Foreword from the ADS President 6 Executive Summary 1 Sustainable Aerospace 12 Revenue 14 4 Orders 22 5 Research and Development 24 Employment 3 International Trade 37 Glossary 38 Photographs reproduced with the kind permission of: Airbus Industrie

4 PRESIDENT S FOREWORD Robin Southwell, Chief Executive EADS UK 6 This year s ADS Aerospace Survey highlights that 211 was one of the best ever years for the civil aerospace industry. The UK currently has the largest aerospace industry in Europe and globally is ranked second only to the USA. In the face of strong global competition and rapid changes in technology, this report sets out how industry has fared and key trends that are driving the market. UK Aerospace revenue totalled 24.2bn in 211, representing a 4.7% increase over the previous year. However, real growth of civil aerospace revenue increased by 5.1% over 21 whilst defence aerospace, in a difficult year, produced no real growth at all. In addition, real growth of civil aerospace exports was up a commendable 13% over 21 whilst defence aerospace exports were also up by 5% over the previous year. The ADS Aerospace Survey confirms an optimistic picture in 211 reflecting an air traffic increase up 6% year on year, increasing aircraft deliveries and a record order backlog. Single aisle production rates rose to new record levels. The report confirms that deliveries of wide body aircraft are also set to significantly increase during 212. The increase in air traffic has also helped to re-activate the lucrative aftermarket. Expectations are on track for the civil aircraft fleet to double over the next 2 years. In 211, the UK trade balance recorded a surplus of 7.2bn - a marked contrast to recent years. Total civil and defence aerospace exports rose by 15.6% over 21 while imports fell by 27% Strong performance by the civil sector helped to offset a difficult year for the defence aerospace industry which has been buffeted by a variety of austerity measures, as many key governments have been forced to cut defence expenditure and prioritise deficit reduction plans. Looking forward from a civil aerospace perspective, the main short term concern remains focussed on the volatility of fuel price and the availability of aircraft financing. Additionally, given the strength of order backlogs at Boeing and Airbus, concern remains over the ability of the supply chain to ramp up to meet increasing production rates. In defence aerospace the mood of uncertainty caused by budget cuts, programme delays and cancellations remains. Additional concern has emerged over the past year due to the prospect of sequestration in the USA that could lead to significant additional automatic budget cuts. With UK and Continental European defence budgets now under considerable pressure, major drivers for the immediate future include fixed/rotary wing upgrades and new programmes that have a growing degree of systems complexity. The overriding view is that Middle East and Asian regions provide the best potential for growth. In 211 the UK aerospace and defence industry increased export sales by 9.4% over 21. This was an excellent achievement in the face of strengthening international competition, increased globalisation and larger direct foreign investment in regions such as China and India. Strongest export regions for civil aerospace were the EU with a 19% increase y-o-y and the ROW with a 24% increase y-o-y. Defence aerospace exports also grew a strong 13% in the EU region. Industry orders totalled 28.3bn which was a 2.6% reduction over that of 21. Civil orders rose by 2.6% last year but this gain was offset by a sharp 12.4% reduction in defence aerospace orders received. There was a welcome 11% y-o-y increase in Research and Development (R&D) and a 46% increase in the vital enabling Research and Technology (R&T). Overall employment levels increased by 4.3% in 211 over those of the previous year although the picture was unsurprisingly mixed between civil and defence sectors. The gross median weekly aerospace industry wage increased by 2.7 per cent over 21 which represents good news in a difficult economic year when general earnings in the UK were flat. The number of students taking specialised aerospace engineering degrees has doubled since 2, reflecting in a CAGR of 6.9% from

5 EXECUTIVE SUMMARY 8 There are good prospects for the UK in both Civil Aerospace and in Defence Aerospace exports. In February, ADS and UKTI jointly produced UK Aerospace International Strategy focussing on identification of major new potential opportunities for the industry in international markets. This was followed in May by the International Defence Market Strategy which set out to identify and shortlist 23 priority markets for the ADS Group Membership on the basis of a rigorous analysis of macroeconomic and defence spending trends. During 212 ADS anticipate the civil aerospace sector to continue a similar upward trend to that experienced in 211 and for production rates to increase between 15-2% overall. In defence aerospace, the expectation is for another year of very tough operating conditions although the potential for some form of stability returning to European defence markets remains possible. The ability of the UK to export is key in this latter sector. Looking forward, the view is that despite increasing competition, significant opportunities exist for the UK supply chain to exploit its capability and grow market share. Importantly for the industry, the Aerospace Growth Partnership (AGP) has been established as a jointgovernment industry process aimed at creating a strategic roadmap for the future of the UK civil aerospace industry for the next 2 years. The AGP will report back to Government later this year on the plan for the UK to maintain its lead position in Europe and its second position globally. The civil aerospace sector has been dominated by the launch in December 21 of the Airbus A32neo and by that of the Boeing 737MAX in 211. With new fuel efficient CFM and P&W engines, airlines and leasing companies have been further stimulated to begin placing large orders for both aircraft types in order to replace aging, less fuel efficient aircraft. By the end of 211, orders for the A32neo and the 737MAX totalled 1,376 representing no less than 62% of total orders received during the year. Encouraged by the size of an order backlog that extended above 8, aircraft last year (this is equivalent to over 6 years annual production), both Airbus and Boeing have further ramped up production of single-aisle aircraft programmes. Increased demand and production ramp-up in single-aisle programmes drove the civil aerospace sector revenues up by 4.7% last year against those of 21. This figure would have been stronger had it not been for production delays in the Boeing 787 programme. A similarly positive picture for the original equipment (OE) market is thought likely to emerge for 212. The regional aircraft market is however expected to remain flat in 212 before perhaps showing some sign of improvement in 214, this due primarily to increased penetration of emerging and BRIC countries. Expectations of recovery in the business jet market continue to remain elusive and are chiefly focussed at the high end of the market. The ADS Survey confirms that defence aerospace markets had another difficult year in 211 as world spending on military equipment ended essentially unchanged. The 21 Strategic Defence and Security Review (SDSR) which had terminated build projects such as the Nimrod MRA4, resulted in withdrawal of military aircraft types such as Harrier GR9, and together with cancellation of various support programmes, were primarily responsible for the decline. With few, if any large order announcements last year, and those that were often contributing little to the UK industrial base, plus pressure on the defence budgets, the situation is unlikely to improve for some time. However, despite tougher operating conditions, revenue from defence 9

6 1 aircraft did increase by 2% over 21 and the UK retained its position as the second largest exporter of all defence aerospace and equipment globally. Exports of components to the USA driven by new military aircraft programmes such as F-35 Joint Strike Fighter, plus those of more mature programmes such as the Lockheed Martin C13J, all helped. Exports to continental European markets also provided strength, particularly involving Eurocopter, AgustaWestland and Alenia Aeronautica. AgustaWestland was also active in providing significant exports of the Super Lynx 3 and AW11 helicopters to international customers. In a year when the message of export or die was more prominent than ever before, ADS members increased overall export sales levels by 9.4% over the previous year. The Space sector lead the way with a 13% increase whilst export sales of airframes and systems, engines and equipment rose by 1%. However, the missile sector had a poor year in terms of exports with sales falling by 38%. Overall, new orders came in at 28.3bn, a 2.6% reduction on 21. Civil orders to the EU, driven primarily by Airbus, rose 25% although civil orders from the US declined 8% over those in 21. The top five primes accounted for 8% of the order book. Research and Development (R&D) totalled 1.97bn in 211 compared with a figure of 1.77bn in 21. This represented an increase of 11% y-o-y, and was driven by spending on new civil programmes such as A35, 787 and C Series. Investment in R&D tends to be one of the first areas to be cut when conditions tighten. This increase is a sign that companies are prepared to invest in order to take advantage of potential new opportunities and markets. Whilst Government funding for R&D increased on the civil side, albeit from a small base, it declined again in defence. The latter reflects not only tough market conditions but also an unfortunate longer term trend of the MoD reducing levels of R&D investment. The critical enabling Research & Technology (R&T) increased 45% from 159m in 21 to 231m in 211 albeit from a small base. This was driven by investment in product improvement programmes for the civil aerospace sector A welcome sign of health is that overall employment levels in the aerospace and defence industry increased by 4.3% in 211 over that of 21. The majority of the top 15 OEM s increased their workforce in 211, as well as a number of mid-cap companies. There were also some large OEM s and mid-caps that also decreased their workforces, but the overall trend was up. As a result of the workforce increasing by 4,15, the productivity trend flattened in 211. When looking at the mix of UK and non-uk students on post-graduation courses, the amount of non-uk students is evident. European defence aerospace markets are still in the process of cutting programmes, reducing equipment, and platform numbers, and considerable uncertainty exists in the USA with regard to sequestration. Clearly this leads to considerable uncertainty in domestic markets. However, export growth opportunities continue to be expedited and are predominantly targeted mainly in the Middle East, Brazil, South East Asia and India. As ever, competition remains tough and breaking into new markets remains difficult. GDP growth in mature western markets is likely to remain weak for some time. However, BRIC nations are forecast to retain strong growth. The perception is that there remains a good opportunity for aerospace and defence industries but there are also growing concerns that the crisis in the euro-zone area could further damage confidence. Overall however, the conclusion at this stage is that 212 should be another strong year particularly in civil aerospace. At a glance Change Revenue: bn 23.6 bn +4.7% Orders: bn 29.8 bn -2.6 % Workforce: 1,658 96, % R&D expenditure: 1.97 bn 1.77 bn +11% Productivity per employee: 24 k 239 k +.4% 11

7 SUSTAINABLE AEROSPACE 12 Air Travel and the Environment Aviation is an integral part of modern life playing a vital role in the UK economy, supporting 2, direct jobs and 5, indirectly. The industry contributes around 11.4 billion to the UK s GDP. It is also central to the global economy in a globalised world, being highly valued by the travelling public helping to shape the world we live in today. The environmental credentials of the aviation sector have been consistently demonstrated - it was the first industry to agree a sector-wide resolution to reduce its global emissions. The Sustainable Aviation strategy demonstrates UK industry s commitment to making a positive contribution to addressing its environmental and social responsibilities whilst maintaining its vital contribution to the UK economy. The CO2 Roadmap The CO 2 Roadmap for UK aviation, first produced by SBAC in 28, remains a vitally important document that has proved so effective in discussions with Government and the Climate Change Committee (CCC) to ensure that the industries views were taken into account. Following a significant amount of analytical work, the CO 2 Roadmap has been updated to include the DfT s revised passenger forecast, and splitting down the information to give more detail of the calculations behind the figures as well as additional work on freighter only flights. This was launched at an event at the House of Commons on 6th March 212. The CO 2 Roadmap remains critically reliant on the current and forward investments by both industry and government, on the success of the various technology programmes and their incorporation into the operator s aircraft fleets. A new Noise Roadmap Following on from the success of the CO 2 Roadmap, Sustainable Aviation has embarked on a similar process looking at a potential Noise Roadmap. This is proving much more challenging, as noise is airport specific rather than global in effect as CO 2. It is planned to have something ready on noise by the 4th quarter of 212. ADS Environment Groups Significant progress has been made in the past year on managing the issues associated with the implementation of the EU REACH, chemicals regulation. Led by the ADS Hazmat group, a number of REACH awareness events have been held to help members supply chains understand REACH, including a very successful workshop. The future workplan includes lobbying, principally on the impacts of REACH. Carbon Management is also in the spotlight at the moment and ADS has responded to a number of Government consultations to Carbon Reduction Commitment (CRC) changes, and is actively working with DECC on the future of Climate Change Agreement (CCA) regulations, calculating and negotiating abatement potential for the Aerospace sector agreements, ensuring that the concerns of ADS members are acknowledged by Government. The Design for Environment group is pressing ahead with developing metrics for seven environmental subject areas. This year, the group is engaging an Engineering Doctorate student in conjunction with the University of Surrey, to press ahead with the work on metrics, being based partly at ADS and partly in one of the 5 funding industries: BAE Systems, Bombardier, EADS, Granta and Rolls-Royce. The study is scheduled to take up to four years and will enable the group to progress faster than if industry carried it out alone. The ADS Sustainable Aerospace Board has made significant input to the Sustainable Aviation initiative, feeding in the contribution being made by the aerospace industry on environmental issues, both nationally and internationally. Last year, it provided the forum for constructing the ADS response to the DfT s scoping consultation on the framework for the new UK Government policy on aviation. The next stage of this consultation has been delayed from late March until the end of July 212, and the Sustainable Aerospace Board will again provide the expertise to respond to this. The final Government policy is still stated to be on target for final publication in March 213. Sustainable Aviation The Sustainable Aviation initiative continues to make steady progress on a number of fronts. A number of major achievements this year have included the publication of an update to the SA CO 2 Roadmap, following a significant amount of work to ensure that the results are robust. A workshop on non-co 2 impacts concentrating on the effects of contrails was held at The Royal Society in June 211 the results from this survey are being used to inform an update of the SA Non-CO 2 climate change effects briefing paper. This is expected to be published later in 212. The Departures Code of Practice is nearing completion, and is expected to be launched at the end of June 212, A new work item looking specifically at noise impacts has been initiated, with the intention of constructing a Noise Roadmap similar to the SA CO 2 Roadmap, that has proved so successful. Producing something for noise is significantly harder than for CO 2, however, as the impacts are local in nature, not global as with CO 2, and each airport is different. The challenge will be in how to communicate the results in a meaningful and effective way that will be applicable to all airports. A significant amount of work continues to be done in the Operational Improvements work-stream addressing both aircraft noise and emissions. A follow-up to the Perfect Flight is being planned, probably to a continental destination as part of an on-going study to identify pinch-points, and how to remove them so that all normal flights can become more perfect. Further information on the Sustainable Aviation strategy including the updated CO 2 Roadmap and other work, can be found at 13

8 REVENUE UK AEROSPACE INDUSTRY SALES AND EMPLOYMENT UK AEROSPACE INDUSTRY REAL GROWTH IN CIVIL AND DEFENCE SALES civil defence baseline 14 Sales (211 bn) Total Sales 211: 24.2 bn Employment 211: 1, aerospace sector performance top 15 OEM s increased their workforce in 211, as well as a number of mid-cap companies Employment ( s) = whilst defence, in a difficult year, produced no real growth

9 UK AEROSPACE INDUSTRY SALES BY SECTOR UK, EU & USA AEROSPACE INDUSTRY SALES TO OWN GOVERNMENTS % 7% sales to Government - EU average sales to US Government sales to the UK Government Note: European data lags one year behind ASD and AIA 7% civil defence 6% civil sales 211: 48.7% 16 % of turnover 6% 5% 4% 3% 2% 1% % defence sales 211: 51.3% swung towards civil after sales grew from 1.95 bn to bn 211 % of turnover 5% 4% 3% 2% 1% % of total sales compared to the US at 59 per cent. are increasing Source: ASD, AIA, ADS

10 UK AEROSPACE INDUSTRY SALES BY SECTOR UK AEROSPACE INDUSTRY SALES BY TYPE % total sales 21: 23.6bn total sales 211: 24.2bn (in real terms) Total Turnover 211: 24.2 bn 2 Defence Domestic 19.6% 15 Defence Export 31.6% % 5-7.7% +5.2% total civil exports defence domestic defence exports Civil Export 43% Civil Domestic 5.8% Exports: 75% Civil: 49% the SDSR review is practically 5/5. Export markets increased their percentage of total aerospace revenue from 7 per cent in 21 to 75 per cent in 211 and rotary wing programmes.

11 UK AEROSPACE INDUSTRY SALES BY SEGMENT AND PRODUCT GROUP UK AEROSPACE INDUSTRY SALES BY CUSTOMER Total Turnover 211: 24.2 bn Missiles 3.5% Space 4% sales to the rest of the world 6.9bn + 6.8% UK Aerospace industry 3.93bn - 9.7% sales to the UK Government Aircraft Engines 32% 2 Aircraft/Rotary Wing 92.5% Aiframes & Systems 42% 3.48bn % 7.64bn % 2.21bn % 21 Aircraft Equipment 26% sales to the USA sales to the EU other sales in the UK cent over 21. Engines increased its revenue by 12 per cent whilst equipment fell by 6 per cent increased by 8 per cent over 21. the previous year. UK sales decreasing, whilst sales to EU, USA and ROW increased significantly aisle ramp-up by Airbus. of 12 per cent and 21 per cent respectively

12 ORDERS UK AEROSPACE ORDER INTAKE BY TYPE AND SECTOR UK AEROSPACE ORDER INTAKE BY DESTINATION engines equipment airframes & systems total order intake 211: 28.3 bn (-2.6%) 6 5 from the rest of the world from USA from outside EU from EU from UK total order intake 211: 28.3 bn 22 order intake (211 bn) order intake (211 bn) Nevertheless, this is above the historical average of 27.7 bn for the years whilst orders for equipment fell by 3.3% per cent year on year. However airframes and systems orders rose by 1.5% on 21 levels and came in at bn in 211. to a drop in defence orders. would have been greater had it not been for a negative performance from defence. year on year, in real terms. a strong performance from defence.

13 RESEARCH & DEVELOPMENT UK AEROSPACE INDUSTRY RESEARCH EXPENDITURE BY SOURCE UK AEROSPACE R&D FUNDING SOURCES defence 56% civil 44% total R&D and R&T spend 211: 2.2bn 1 9 Total R&D Spend 211: 1.97bn bn bn R&D + R&T Others Other governments UK Government Self-financed in which more money was spent on new civil programmes such as A35, 787 and C Series. whilst defence aerospace fell from 59 per cent to 56 per cent. of the spend, which increased 15% over 21. spend. An increase in civil aerospace offset the decline in defence aerospace spend over 21 in a difficult year. However, civil aerospace rose by an encouraging 21 per cent over the previous year.

14 UK AEROSPACE R&T SPEND BY SECTOR UK AEROSPACE R&D BY SECTOR 4 35 R&T R&T civil R&T defence total R&T in 211: 231 million engines 211: 27% airframes & systems 211: 5% equipment 211: 23% total R&D spend 211: 1.97bn million R&D spend (211 bn) civil aerospace sector reaching a spend of 531m 12 per cent over

15 UK AEROSPACE REPAYABLE LAUNCH INVESTMENT GLOBAL SALES & EMPLOYMENT OF THE UK AEROSPACE INDUSTRY (UKAI) AEROSPACE ASSETS 12 1 Launch investment UKAI in USA sales ( bn): 6. orders ( bn): 5.95 employment: 3,19 R&D ( bn).65 UKAI in UK sales ( bn): 24.2 orders ( bn): 28.3 employment: 1,658 R&D ( bn) Investment ( million) UKAI in rest of world sales ( bn):.87 orders ( bn):.97 employment: 7,83 R&D ( bn).2 global UKAI sales ( bn): orders ( bn): employment: 142,372 R&D ( bn) 2.74 UKAI in rest of EU sales ( bn): 1.19 orders ( bn): 1.7 employment: 4,522 R&D ( bn) /11 211/12 212/13 213/14 214/15 of civil aerospace projects in the UK. total of 16m. currently forecast. 8.6bn and 7.99bn respectively. In addition, to the domestic workforce of 1,658, a further 41,714 people are employed by the UK companies overseas. also accounts for 72% of the UK s workforce overseas. Source: BIS

16 EMPLOYMENT UK AEROSPACE SALES PER EMPLOYEE UK AEROSPACE GROSS MEDIAN WEEKLY WAGE 211 v 21 3 turnover per employee (211 ') Productivity Growth per employee 211:.5% Productivity Growth : 119% % in 211, driven in the main by new developments and the single aisle ramp-up. to 42 pm, whilst other programmes achieve rate production and company workforce efficiencies take effect. per week Gross median full time weekly pay ( ) Aerospace industry Gross median full time weekly pay ( ) UK 21 to in 211, an increase of 2.7 per cent. 34,834 versus for the average UK salary Source: BIS

17 UK AEROSPACE UK EMPLOYMENT PROFILE 211 UK AEROSPACE STUDENTS IN HIGHER EDUCATION BY SUBJECT Total: 1,658 employees Engines 3% Equipment 29% Others 32% Graduate Engineers & Managers 39% Production engineering Electronic & electrical engineering Aeronautical engineering Mechanical engineering General engineering Physics 32 Airframes & Systems 41% Apprentices 3% Technicians 26% Students in UK higher education total, whilst airframe & systems decreased their share from 44 per cent to 41 per cent per cent to 39 per cent. engineering and physics in 211 reached a total of 118,645. However, the rate of growth slowed from 6 per cent in 21 to 3.3 per cent in 211. degrees have doubled since 2, reflecting a compound annual growth rate (CAGR) of 6.9 per cent from to gain employment in the UK aerospace sector. Source: Higher Education Statistics Agency

18 UK AEROSPACE STUDENTS IN HIGHER EDUCATION BY LEVEL OF STUDY (FULL & PART TIME) UK AEROSPACE UNDERGRADUATE AEROSPACE ENROLMENTS (FIRST DEGREES ONLY) 1% 9% 8 7 Total UK Other EU Non-EU 34 8% 7% 6% 5% 4% Other undergraduate First degree Postgraduate Enrolments % 2% 2 1% 1 % Physics General engineering Mechanical engineering Aeronautical engineering Electronic & electrical engineering Production engineering 26/7 27/8 28/9 29/1 21/11 engineering degrees in 211 are postgraduates, while this figure is 41 per cent in production engineering degrees. courses are taking a first degree compared to 67 per cent for aerospace engineering studies. Source: Higher Education Statistics Agency aerospace has grown by 5.9 per cent CAGR over the past four years. However, the growth of UK students is below average at 3.5 per cent CAGR, whilst the growth of non-eu and other EU students rose by a more significant 14.8 per cent and 13.6 per cent CAGR. an undergraduate level is growing strongly compared to a levelling of UK students studying the same courses. Source: Higher Education Statistics Agency

19 INTERNATIONAL TRADE POSTGRADUATE AEROSPACE ENGINEERING ENROLMENTS (MSc ONLY) UK TRADE BALANCE OF AEROSPACE Total UK Other EU Non-EU Imports Exports Balance Enrolments rade (Current prices bn) /7 27/8 28/9 29/1 21/ CAGR of non-eu students is a strong 32.5%, whilst other EU students studying for an MSc has also reached a significant 2.4% over the past four years. aerospace engineering MSc qualification has dramatically overtaken the intake of UK students. recent years. Exports rose by 15.6% over 21 while imports fell by 27% exports of wings/engines/equipment to Airbus and engines/equipment to Boeing. Source: BIS Source: Higher Education Statistics Agency Note: Trade balance data is provided by the UK government and represents trade in all aerospace goods to and from the UK, not just the UK aerospace industry as defined by ADS. The data includes the purchase of aircraft by UK airlines and the sale of second-hand aircraft to the rest of the world.

20 GLOSSARY 38 Airframes & Systems Airframe is defined as the structural, physical components of an airplane, including the fuselage (the tube), framework and skin, empennage, wings, cowlings, aircraft interiors and stabilising/control surfaces. Nacelles are treated as part of the engine. The airframe definition also covers missiles and space vehicles although not all the above categories apply. Systems are defined as assisting the aircraft to fly and navigate. They include avionics, communications, electrical, primary/secondary/mechanical flight controls, hydraulics, landing gear, oxygen, fuel, propulsion, ice protection and the cooling system. Aircraft Equipment All equipment and components that form part of the aircraft systems above are defined as aircraft equipment. These would include actuators, pumps, valves, black boxes etc. The aircraft equipment definition also covers missiles and space vehicles although not all the above categories apply. The engines and equipment definition also covers missiles and space vehicles although not all the above categories apply. Data and Information The information provided in this Report is primarily the result of the UK Aerospace Industry (UKAI) Survey of 211 data, undertaken by ADS in 212. Data has been collected not only from ADS member companies but also other aerospace companies both in the UK and the rest of the world. The results of the survey are used by a wide variety of stakeholders in the aerospace industry, including government ministers and departments including the Department for Business, Innovation and Skills (BIS), Ministry of Defence, Department for Transport and UK Trade and Investment (UKTI). The Survey is also used by the Aerospace and Defence Industries Association of Europe (ASD), ADS member companies and respondents to the survey. The Aerospace Industry Survey 212, together with the explanatory notes, is also available from the ADS website: pages/ asp 39 Engines and Equipment The categories for engines and equipment are built around the current RR engine module classification systems as below. Assemblies and equipment that fall into these modules should also be included in this section