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UK Aerospace Industry Faces Delivery Slowdown Amid Record Order Backlogs

Aviation and Aerospace

Statistics, Pandemic, Investment, Manufacturing

Business Honor
26 October, 2024

UK aerospace industry faces a delivery slowdown and revised forecasts despite record-high order backlogs

The UK aerospace industry reported a slowdown in aircraft deliveries, even though order backlogs hit record highs. Commercial aircraft deliveries decreased by 7.5% during the first nine months of 2024 compared to the same period last year, according to data from trade body ADS.

Results improved in the third quarter, with 295 aircraft delivered, the highest of any quarter since the pandemic, although year-to-date statistics still are a cause for concern. New aircraft orders are much lower, with 982 orders placed in the first nine months of 2024, down 55 percent from the record-setting pace of 2023, though September orders increased to be the largest for the month in a decade and at least partially offset some weaker performance earlier in the year.

It also covers the record aircraft order backlog of 15,867, up an 8% increase against this time last year. These backorders, valued at approximately £241 billion, will probably provide work through the next 12 years and also speak to a long-term play on confidence in the sector.

ADS attributes the delivery slowdown to supply chain disruptions, regulatory challenges, and workforce issues affecting production rates. According to Aimie Stone, Chief Economist at ADS Group, increased government support would be required to "strengthen supply chains, innovation, and investment."

Advanced manufacturing-more specifically, aerospace-is one of the priority growth areas in the UK government's Industrial Strategy, announced just a few weeks ago. According to ADS, such recognition must be translated into actionable policies to support the industry.

Despite the persistent difficulties in production, ADS has decreased its 2024 delivery forecast to 1,165 aircraft, a reduction of 7% compared with earlier estimates. The UK aerospace sector continues to be an essential contributor to the economy, adding £10.9 billion and supporting 104,000 direct jobs.