UK Aerospace Industry Survey. Advancing UK AeroSpace, Defence and Security industries

Transcription

1 2011 UK Aerospace Industry Survey Advancing UK AeroSpace, Defence and Security industries

2 2

3 Contents Foreword from the A D S President 4 Executive Summary 6 3 Sustainable Aerospace 8 Revenue 10 Orders 18 Research and Development 22 Employment 28 SMEs 34 International Trade 36 About A D S 39 Data and Information 39 Photographs reproduced with the kind permission of: Airbus SAS AgustaWestland BAE Systems EADS Eurofighter GmbH Gardner Aerospace Rolls-Royce plc

4 A D S Aerospace Survey 2011 President s foreword Peter Rogers, Chief Executive Babcock International Group PLC 4 This year s A D S UK Aerospace Survey, covering both the civil and defence aspects of the sector, paints a very interesting picture for our industry, analysts and policy-makers. As always it highlights the significant achievements of the sector as the UK continues to punch above its weight as number one in Europe and second only to the US globally in aerospace. In 2010, despite difficult economic conditions, a hugely disruptive volcanic eruption in Iceland, extreme weather conditions in the UK and squeezed defence budgets across the globe, the sector grew by 2.1 per cent with an annual turnover of 23.1 billion, 70 per cent of which is from exports. The clear picture is of a strong performance despite a tough year. The diversity of our aerospace businesses of all sizes and from across the whole country, along with their unique participation in programmes in supply chains in Europe, North America, China and elsewhere, means that our glass is certainly more than half full, although challenges for the future remain. Alongside the strong overall performance of the sector, in 2010 defence exports were up by 4.5 per cent and civil exports rose by 0.5 per cent. In the global market aerospace competition is as much between countries as it is between companies. Therefore, a strong industry-government partnership together with sustained public and private investment will be crucial for maintaining the longterm future of the sector. During 2010 the industry made an encouraging start with strong Government support for exports and both Vince Cable and Mark Prisk hosting regular strategic meetings with aerospace business leaders.

5 However, looking to the future, there are some clouds on the horizon in terms of investment and orders. Overall aerospace orders fell by 11 per cent in 2010 due entirely to a 29 per cent drop in defence orders that was not wholly offset by a 3 per cent rise in civil orders. This trend for growth in civil aerospace diverging from a decline in the defence side is expected to continue in 2011 given pressures on government budgets around the world. We should remember that despite this drop in orders from 2009 levels 2010 still saw a good overall annual performance. Total orders are at 29.1 billion for 2010 when compared with the annual average from 1997 to 2009 of 27.5 billion. Furthermore, a small drop in employment figures in 2010 is due to the sector growing more slowly, at 2.1 per cent, than the 6 per cent rise in productivity per employee but a growing concern is that defence cuts are beginning to bite and this is reflected in the large fall in defence orders. Spending on both research and development and research and technology remained unchanged overall from 2009 levels at what are historically low figures. This remains a serious concern for the long-term sustainability of such a highvalue sector as aerospace. Overall we should not forget that the survey results demonstrate yet again that the UK aerospace industry is a jewel in the crown of our high-tech manufacturing, advanced engineering and support services sectors. The challenges that we have identified for the coming years are by no means insurmountable and our industry takes pride in its problem-solving abilities for both our sector and our customers, including the UK Government. We expect 2011 to see accelerating growth on the civil side and, while defence aerospace will likely experience a tougher year, this industry is not known for giving up at the first sign of difficult times. It has produced positive economic benefits for this country for a century and we expect that the 2012 survey results will continue to reflect that proud record. 5 Peter Rogers A D S President

6 Executive Summary 6 The UK aerospace industry is a true economic engine for the UK. It is a leader in the high-value manufacturing industry and a sector that drives technological innovation in the UK. Aerospace is one of the most important manufacturing industries in the country. The UK recession may be officially over, but almost every sector is still feeling the effects of the downturn. Despite the adverse economic conditions that prevailed over the last two years, total aerospace sales in 2010 rose to 23.1 billion, up by 2.1 per cent on 2009, which is a new record for the eighth year running. Military aircraft sales have increased by 35 percent since 2002, but this is likely to ease in the coming years. In 2010 the defence market accounted for 52 per cent of total aerospace turnover. Overall, revenue growth was mainly driven by rising deliveries, as well as continued aftermarket recovery. In addition, stronger airlines performance including in emerging markets are driving demand and will, in due course, result in stronger earnings. Exports to the US increased by 8.1 percent in real terms in 2010 to 3.1 billion, indicating that the drop of 20 percent in 2009 was merely temporary. Export sales to the rest of the world continued to expand and rose by 4 per cent from last year to reach 6.5 billion in Sales to the EU fell slightly by 1.7 per cent year-on-year to 6.5 billion. Overall, the performance of the aerospace sector particularly the civil side is strongly linked to national and global economies, therefore affecting sales as a result, albeit at varying levels. New orders came in at 29.1 billion in 2010, an 11 percent decrease over This is still greater than the recent average yearly order intake of 27.5bn. However, it should be noted that the fall in orders was almost entirely down to defence aerospace order delays and weak bookings and could be seen as an early indication of expected falls in nations defence expenditure. Nevertheless, with overall aerospace sales recording positive growth and the order book exceeding revenues, the industry is in a very

7 good position to ride out challenges going forward. Given the global economic recovery and demand projections of 26,000 new civil aircraft up to 2029, the outlook for new aircraft orders are expected to improve in the medium to long term. This is reflected by the 4 percent year-onyear increase in commercial systems and frames orders, at 6.77 billion in In fact, the supply chain appears to be preparing to handle the production rate increases the large aircraft manufacturers have recently announced. Exports of UK aerospace products remained largely unchanged since 2009 and amounted to 16.1bn in This is equivalent to 70 per cent of total turnover and indicates an export intensive industry. Civil activities represented the majority of exports and accounted for 39 percent of total turnover, while defence export activities represented 31 per cent of total turnover. Research and Development (R&D) in the sector remained flat in 2010 at 1.77 billion. The self-financed R&D expenditure amounted to 48 per cent of the total, while 24 per cent came from government funding. The breakdown of R&D spending since 2009 reveals that the equipment sector increased by 4 per cent to 520m. Investment in the aircraft & systems sector fell by 11 per cent to 880m, while the engines sector rose by 30 per cent to 370m. Employment levels in the industry fell from 100,327 to 96,510. This reduction could in large part be attributed to the general economic conditions in the previous year and pressure on companies to lower costs and improve efficiency to mitigate the impact of anticipated lower activity in the defence sector. In fact, labour productivity per worker increased 6 per cent in 2010 to 239,000 per year. There is an upbeat mood about the employment situation in the sectors over the next 12 months as a result of the ongoing recovery in the aviation industry and the global economy in general. 7 At a glance Change Revenue: bn 22.6 bn +2.1% Orders: bn bn % Workforce: 96, , % R&D expenditure: 1.77 bn 1.77 bn 0 % Productivity per employee: k k +6.1%

8 Sustainable Aerospace 8 Air Travel and the Environment Air travel is an integral part of modern life playing a vital role in the UK economy, supporting 200,000 direct jobs and 500,000 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 as well, 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 aptly demonstrated as it was the first industry to agree a sector-wide resolution to reduce its global emissions. The Sustainable Aviation strategy signals UK industry s commitment to ensure that the industry continues to make a positive contribution to this resolution and continuing to address its environmental and social responsibilities whilst maintaining its input to the UK economy. The CO 2 Roadmap The CO 2 Roadmap for UK aviation, first produced by SBAC in 2008, a forerunner of A D S, has been pivotal in discussions with Government and the Climate Change Committee (CCC) to ensure that the industry s views were taken into account for their report on aviation emissions. Indeed its success has been aptly demonstrated by the number of other groups (including the CCC) that have produced similar versions based on their own analyses of the future. This year, the CO 2 Roadmap will be analysed again, under the banner of Sustainable Aviation, and updated to include the Department for Transport s revised passenger forecast, and splitting down the information to give more detail of the calculations behind the curves as well as additional work on freighter only flights. The CO 2 Roadmap relies critically 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 D S 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 A D S Hazmat group, responses have been made to European Chemical Agency (ECHA) consultations, and a number of REACH events have been held to help members understand REACH, including a very successful workshop in Northern Ireland. The future work-plan will include lobbying, principally on the REACh recast in Carbon Management is also in the spotlight at the moment where A D S has managed responses to a number of Government consultations around changes to the Carbon Reduction Commitment (CRC), and is actively working with The Department of Energy and Climate Change (DECC) on the future of Climate Change Agreement (CCA) regulations. With Phase 3 of the EU ETS looming in 2013, work is being undertaken to ensure that the concerns of the A D S sectors are acknowledged within Government.

9 The Design for Environment group is pressing ahead with developing metrics for seven environmental subject areas. This year, the group will be entering the next stage to engage with stakeholder groups and Non-Governmental Organisations (NGOs) to test the appropriateness of them to address design issues. The aim is to have these as near to complete as possible by the end of The A D S 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. This year, it will be pivotal in providing the consolidated industry response to the DfT s consultation feeding in to the formulation of the new UK Government s policy on aviation. Sustainable Aviation SA continues to make steady progress in its numerous work-streams culminating in the publication of its Third Progress Report in March Major achievements this year have included the publication of two papers on Environmental Interdependencies, and Aircraft Waste and the successful trial of the Perfect Flight where approximately 12% fuel and CO 2 emissions savings were demonstrated on a flight that followed an optimum flight profile from Heathrow to Edinburgh. For this year, a workshop is planned to start the new non-co 2 impacts workstream, the finalisation and publication of the last two parts of the Departures Code of Practice, a followup to the Perfect Flight and other operational improvements, and the initiation of another new work-stream identifying the social and economic value of the industry. 9 Further information on the Sustainable Aviation strategy including the Third Progress Report, and details of the CO 2 Roadmap and other work, can be found at

10 Revenue 10 Figure 1 UK Aerospace industry sales and employment Sales increased by 2.1 per cent in real terms in 2010 to 23.1 bn, driven mainly by a stronger performance in the defence sector. Aerospace employment fell to 96,510, a decline of 4 per cent from Nevertheless, continued positive growth and recovery in aerospace over the next period will see a need for new recruitment in the sector. Sales (2010 bn) 30 Employment (000 s) Total Sales 2010: bn Source: A D S Employment 2010: 96,

11 Figure 2 UK Aerospace industry real growth in civil and defence sales The civil aerospace sector expanded by 1.5 per cent in 2010 whilst defence experienced a respectable growth of 3 per cent between civil defence baseline = Source: A D S

12 Revenue 12 Figure 3 UK Aerospace industry sales by activity The balance of sales between the defence and civil sectors expanded over the last year with defence sales increasing to 12.11bn, while civil sales were 10.95bn, which was mainly unchanged from % of turnover 80% 70% civil defence 60% civil sales 2010: 47.5% 50% 40% defence sales 2010: 52.2% 30% 20% 10% 0% year Source: A D S

13 Figure 4 UK, EU and USA aerospace industry sales to their own governments Total sales to the UK government increased 7 per cent year on year to 4.4bn. The dependence on government sales is substantially lower in the UK at 19 per cent of total sales compared to the US at 57 per cent. % of turnover 70% sales to Government - EU average sales to US Government sales to the UK Government 60% 50% 40% 30% 20% 10% 0% year Source: ASD, AIA, A D S

14 Revenue 14 Figure 5 UK Aerospace industry growth between Overall sales were up 2.1 per cent in real terms in 2010 to 23.1 bn. Defence domestic sales increased by 0.6 per cent to 5bn, while domestic civil sales recorded an increase of 4.6 per cent from the 2009 result. Among others, the relative weakness of UK sterling has had a positive effect on the export market with defence exports increasing by 4.5 per cent. Civil exports increased by 0.5 per cent since 2009 despite tough competition in the civil market. turnover (2010 bn) % total sales 2009: 22.59bn total sales 2010: 23.06bn (in real terms) % 4.5% 5 0.6% 4.6% 0 total civil domestic civil exports defence domestic defence exports Source: A D S

15 Figure 6 UK Aerospace industry sales by type 15 In 2010 the defence market remained prevalent as it accounted for 52 per cent of the total turnover. The UK continued to reinforce its position as a key actor serving markets globally, with exports accounting for 70 per cent of total turnover. Total Turnover 2010: bn Civil Domestic 8.6% Defence Export 30.8% Civil Export 38.9% Defence Domestic 21.7% Exports: 70% Civil: 48% Source: A D S

16 Revenue 16 Figure 7 UK Aerospace industry sales by product group The aircraft maintenance market rose in 2010, up by 12 per cent over Aircraft engines sales increased by 9 per cent in real terms to 5.7bn in Aircraft equipment sales increased by 4 per cent to 5.9bn. The space sector remained fairly unchanged at 800m. Missile sales fell 27 per cent in real terms to 780m. Aircraft Equipment 25.6% Missiles 3.4% Space 3.5% Helicopters 4.6% Aircraft Systems & Frames 36.2% Large Civil Aircraft 9.1% Aircraft Engines 24.7% Aircraft Maintenance 6.6% Defence Aircraft 19.6% Regional Jets 2.5% Other and Business Jets 0.4% Source: A D S

17 Figure 8 UK Aerospace industry sales by customer 1 17 Sales to the UK Government and the US recorded a positive growth in 2010, whilst sales to EU markets dropped slightly. Sales to the rest world continued to expand and increased by 4 per cent from last year to reach 6.5bn in sales to the rest of the world 6.46bn + 3.7% UK Aerospace industry 4.35bn + 5.3% sales to the UK Government 3.07bn + 8.1% 6.53bn - 1.7% 2.65bn - 3.8% sales to the USA sales to the EU other sales in the UK Source: A D S 1 Sales to UK Government include national authorities such as public research institute and the national space agency.

18 Orders 18 Figure 9 UK Aerospace order intake by type and sector Total orders in 2010 recorded a fall of 11 per cent on previous year to 29.1bn. Nevertheless, this is above the historical average of 27.5bn for the years The breakdown in orders revealed that system and frames were down by 23 per cent in overall over 2009 levels and came in at 11.2bn. A further analysis of orders in system and frames showed that civil orders increased by 4 per cent to 6.8 bn in 2010, while defence orders fell by 45 per cent to 4.4bn for the same time period. Orders for engines were down by 4 per cent to 11.2bn while orders for equipment increased by 2 per cent to 6.65bn year on year. order intake (2010 bn) systems & frames equipment engines total order intake 2010: 29.1 bn (-11%) Source: A D S

19 19

20 Orders 20 Figure 10 UK Aerospace order intake by destination Orders from the EU and the rest of the world accounted for 61 per cent of total order flow (68 per cent in 2009), while the US accounted for 14 per cent (10 per cent in 2009). Order intake in 2010 declined across all markets except the UK and the US, which recorded a 16 per cent increase over 2009 to reach 3.8bn. The largest deteriorations are in the EU, where civil and defence orders fell 6 and 62 per cent (overall fall of 24 per cent since 2009) respectively to total 9.2bn in 2010 (defence 1.43bn, civil 7.76bn). The domestic UK markets which accounted for approximately one quarter of all orders in 2010 increased by 6 per cent to 7.6 bn. In overall, aggregate orders for civil aerospace were up by 2 per cent to 19bn, while aggregate defence orders fell by 29 per cent to 10bn year on year. order intake (2010 bn) from the rest of the world from USA from outside EU from other EU from UK total order intake 2010: 29.1 bn Source: A D S

21 Figure 11 Selected UK Aerospace Company Results The company results for listed companies marked a stable improvement in turnover and a strong improvement in operating profit compared to The overall turnover increased by 3 per cent, while operating profit grew by 23 per cent year on year. It should be noted that that with the exceptions of Rolls-Royce and GKN these are group figures for companies that have large non-aerospace components. Company Division Turnover Operation Profit BAE SYSTEMS Plc group 22,392 21,990 1, Rolls-Royce Plc civil aerospace, defence 7,042 6,491 1,130 1,174 GKN Plc aerospace 1,451 1, Cobham Plc group 1,903 1, Meggitt Plc group 1,162 1, Ultra Electronics Plc group Source: companies financial reports

22 Research and Development 22 Figure 12 UK Aerospace industry research expenditure by source R&D and early stage R&T total spending largely unchanged at 1.93bn since The breakdown revealed that the civil sector has reversed the negative growth since 2005 and increased by 7 per cent over 2009 to 800m. The defence R&D and R&T fell by 5 per cent in bn defence 59% civil 41% total R&D and R&T spend 2010: 1.93bn year R&D + R&T Source: A D S

23 Figure 13 UK Aerospace R&D funding sources Self-financed R&D accounted for 48 per cent of total R&D, while Government funding came in at 24 per cent of total R&D, the second highest contributor. Total R&D amounted to 1.77bn in 2010, unchanged from 2009 at 1.77bn. m Total R&D Spend 2010: 1.77bn Self-financed UK Government Other governments Others Source: A D S

24 Research and Development 24 Figure 14 UK Aerospace R&T spend by sector Total R&T expenditure declined by 1 per cent to 159m in The decline in R&T was entirely in civil aerospace. 63 per cent of total expenditure was allocated to the civil aerospace market, which is a fall of 2 per cent since R&T in defence aerospace came in at 58m in 2010, unchanged since R&T R&T civil R&T defence total R&T in 2010: 159 million million Source: A D S

25 Figure 15 UK Aerospace R&D by sector 25 In 2010 R&D expenditure decreased in the aircraft & systems sector, but rose by 90m (30 per cent increase year on year) in the engines sector to 370m. The equipment sector also recorded a growth in R&D investment in 2010, which increased by 4 per cent over 2009 to 520m. The aircraft and systems sector accounted for 50 per cent of total R&D expenditures in R&D spend (2010 bn) engines 2010: 21% aircraft & systems 2010: 50% equipment 2010: 30% total R&D spend 2010: 1.77bn year Source: A D S

26 Research and Development 26 Figure 16 Repayable launch investment Repayable launch investment is a risk sharing-government investment in the design and development of civil aerospace projects in the UK. There is no programme or budget and each application is considered on its merits and against public expenditure constraints; therefore the funding stream varies depending on project investment decisions. In 2010/11 expenditure totalled 98.1m, while committed expenditure up to 2013/14 is estimated at 35m. Investment ( million) 120 Launch investment /1 2011/ / /14 Source: BIS

27 Figure 17 Global sale and employment of The UK aerospace industry (UKAI) Aerospace assets 27 UK companies sales and order volumes outside the UK generated an additional 8.53bn and 9.75bn in 2010 respectively. In addition to the domestic workforce of 96,510, a further 45,911 people are employed by UK companies overseas. The US remained the largest region by overseas assets with sales remaining constant at 6.65bn in It also accounts for 25 per cent of the UK s global workforce. UKAI in USA sales ( bn): 6.65 orders ( bn): 6.18 employment: 35,306 R&D ( bn) 0.53 UKAI in UK sales ( bn): orders ( bn): employment: 96,510 R&D ( bn) 1.77 global UKAI sales ( bn): orders ( bn): employment: 142,421 R&D ( bn) 2.41 UKAI in rest of world sales ( bn): 0.85 orders ( bn): 0.83 employment: 6,284 R&D ( bn) 0.03 UKAI in rest of EU sales ( bn): 1.03 orders ( bn): 2.75 employment: 4,321 R&D ( bn) 0.09 Source: A D S

28 Employment 28 Figure 18 Aerospace sales per employee Labour productivity growth increased 6 per cent with revenue per employee rising 14k since 2009 to 239k in UK Aerospace employment fell by 4 per cent year on year and came in at 96,510 in turnover per employee (2010 '000) Productivity Growth per employee 2010: 6% Productivity Growth : 119% Source: A D S

29 Figure 19 Aerospace gross average weekly wage The gross average weekly wage in the aerospace industry increased from in 2009 to in 2010, an increase of 3 per cent. This figure is 46 per cent higher than the gross mean weekly wage in the UK. The mean gross annual salary for aerospace employees in 2010 was 37,215. per week Gross Average Weekly Pay Aerospace Industry Gross Average Weekly Pay All UK Employees Source: BIS Analysis of ASHE 2009, 2010 Annual Survey of Hours and Earnings

30 Employment 30 Figure 20 UK employment profile 2010 In 2010, 38 per cent of aerospace employees held a university degree or equivalent, an increase of 3 per cent over Apprentices account for 3 per cent or 2,567 of the workforce. Production constitutes the largest group of employees with 52 per cent or 50,659 of the workforce per cent of the workforce is based in the UK, 0.4 per cent in the US, 1 per cent is in other EU countries and 5.8 per cent in the rest of the world. total: 96,510 employees equipment 29% aircraft & systems 44% engines 27% others 32% 36% graduate engineers & managers apprentices 3% 27% technicians Source: A D S

31 Figure 21 Students in higher education by subject 31 The number of students in higher education in 2010 reached 114, 805, an increase of 6 per cent from The number of students taking specialised aerospace engineering degrees has risen on average by nearly 7 per cent per annum since 2000 and reached 9,825 in Students in UK higher education Production engineering Electronic & electrical engineering Aeronautical engineering Mechanical engineering General engineering Physics Source: Higher Education Statistics Agency

32 Employment 32 Figure 22 Students in higher education by level of study (Full time & Part time) 20 per cent of students taking specialised aerospace engineering degrees are postgraduates, while this figure for 40 per cent in production engineering degrees. Almost 75 per cent of all students enrolled in physics courses are undergraduates compared to 65 per cent of aerospace engineering degrees. 100% 90% 80% 70% 60% 50% 40% Other undergraduate First degree Postgraduate 30% 20% 10% 0% Physics General engineering Mechanical engineering Aeronautical engineering Electronic & electrical engineering Production engineering Source: Higher Education Statistics Agency

33 Figure 23 Higher Education qualifications obtained by subject of study, level of qualification and class of first degree 2009/10 Of those gaining a first degree in 2010 (among selected subjects), 23 per cent obtained first class honours and 37 per cent obtained upper second class honours. 33 In 2010, 32 per cent of students enrolled in physics gained first class honours compared with an average 21 per cent among the selected degrees. 100% 90% 80% 70% 60% 50% 40% Unclassified Third Pass Lower second Upper second First 30% 20% 10% 0% Physics General engineering Mechanical engineering % Aeronautical engineering Electronic & electrical engineering Production engineering Source: Higher Education Statistics Agency

34 SMEs 34 Figure 24 UK Aerospace industry Small and Medium Sized Enterprises (SMEs) turnover by type and destination per cent of total SME sales are to civil aerospace. 19 per cent of SME revenue is from exports. Note: For the purposes of this survey an SME is defined as having fewer than 250 employees. The number of responses received from SME companies is very volatile year on year and represents only a small fraction of the total SME community. As a result absolute figures comparing 2010 with previous years do not give an accurate picture of the SME community. Civil export 13% Military domestic 39% Civil domestic 42% Military export 6% Source: A D S

35 Figure 25 UK Aerospace SME sales by destination 35 Sales to the UK (Govt and other UK sales) represented the largest market for the SME sector and accounted for 81 per cent of total SME sales. Exports to the EU generated 12 per cent of total sales by SME s. Note: The number of responses received from SME companies is volatile year on - year and represents only a small fraction of the total SME community. As a result absolute figures comparing 2010 with previous years do not give an accurate picture of the SME community. Sales to the USA 3% Sales to Others 4% Sales to UK government 13% Sales to the EU 12% Sales in the UK 68% Source: A D S

36 International trade 36 Figure 26 UK trade balance of Aerospace In 2009, the UK trade balance fell into the red for the first time since 1997, recording a deficit of 290m despite a 12 per cent increase in exports. Given that the trade data varies at an extended period after the year end to which it relates, a reliable data set can only be obtained for Trade (2009 bn) Imports Exports Balance Year 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 A D S. The data includes the purchase of aircraft by UK airlines and the sale of second-hand aircraft to the rest of the world. Source: BIS

37 37

38 International trade 38 Figure 27 UK trade balance of Aerospace preliminary figures by destination The US remains the largest UK trading partner with exports to the US valued at 6.4bn in The balance of trade remains negative at 3.5bn, which is a significant expansion compared to 2008 deficit at 2.6bn. The trade balance with the European Union held up well with a surplus of 1.8bn in Exports to the Middle East and Africa, and Asia and Oceanica in 2009 came in at 5.9bn ( 4.9bn in 2008), while the imports from these regions accounted for 3.6bn ( 2.9bn in 2008) Trade ( bn) Total Imports Total Exports Balance European Union 15 Other European Americas Middle East and Africa Asia and Oceania 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 A D S. The data includes the purchase of aircraft by UK airlines and the sale of second-hand aircraft to the rest of the world. Source: BIS

39 About A D S ADS is the Trade Organisation advancing UK AeroSpace, Defence and Security industries, with Farnborough International Limited as a wholly-owned subsidiary. Together with its regional partners, A D S represents over 2,600 companies. A D S is also proud to support SC21, Sustainable Aviation, Defence Industries Council, RISC, Defence Matters and a selection of Special Interest Groups (SIGs). In addition, it hosts the Aerospace, Aviation and Defence Knowledge Transfer Network and is a member of the AeroSpace and Defence Industries Association of Europe. A D S also encompasses the British Aviation Group (BAG). It was formed through the merger of the Association of Police and Public Security Suppliers (APPSS), the Defence Manufacturers Association (DMA) and the Society of British Aerospace Companies (SBAC). Data and Information The information provided in this booklet is primarily the result of the UK aerospace industry (UKAI) Survey of 2010 data undertaken by A D S in Data has been collected not only from A D S member companies but also other aerospace companies (e.g. consortia, joint ventures, non-members and airline maintenance 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 Business, Innovation and Skills, Business Enterprise and Regulatory Reform, Ministry of Defence, Department for Transport and UK Trade and Investment (UKTI), The Aerospace and Defence Industries Association of Europe (ASD), A D S member companies and respondents to the survey. All the analyses and information about the aerospace industry survey 2011 are also available from the A D S website. 39

40 The survey is produced by Chadi Tamimi, Analyst at A D S. chadi.tamimi@adsgroup.org.uk survey@adsgroup.org.uk Tel: +44 (0)