Engineering news
New aircraft and engine orders surged in July resulting in the largest ever month-on-month increase in the order book, according to aerospace and defence trade association ADS.
ADS said last month's Farnborough Airshow had been spectacularly successful even though the industry was already on an upward trajectory. The boost brought the total backlog in the global aerospace sector to 12,000 aircraft and 21,000 engines, estimated to be worth between £135 billion to £155 billion to Britain over the next nine years.
Industry growth projections forecast a demand for more than 29,000 commercial airliners between now and 2032, as airlines look to grow or improve their fleets to cater to rising passenger numbers. Much of the demand is driven by Asia, especially China and India. The British aerospace sector directly and indirectly employs more than 220,000 people and is the second largest by value in the world after the US.
Jeegar Kakkad, chief economist and director of policy at ADS, said: “This was a fantastic Farnborough Airshow for the industry. Overall we had about $200 billion worth of orders in terms of aircraft, engines, and maintenance and overhaul contracts.” He said the figure at the Farnborough Airshow in 2012 had been about $72 billion. “In terms of the volume, that is going on a threefold increase in orders. It demonstrates the health of the global aviation sector.”
Kakkad said that throughout the course of the year there had been a steady pick-up in the orders for single body and wide aisle aircraft. “July was the biggest single increase in the order backlog for commercial aircraft that we've seen in terms of all the records.” Farnborough would have been regarded as a success with even half the number of orders, he said. “It indicates the underlying strength of the commercial aircraft sector.” Orders that were placed had a high level of content in terms of the contribution of the UK supply chain.
Labour has said it will persevere with the coalition's industrial strategy on aerospace if it wins the general election next year. “Industry has seen a significant benefit from the Aerospace Growth Partnership (AGP) and it has made global companies sit up and take notice of what the UK has to offer in terms of R&D and the quality of the supply chain we've got,” Kakkad said.
“We can't be complacent in terms of our market share. We have to keep investing in our competitive advantage in terms of quality, skills and the supply chain. We need continued political support for the AGP and the Aerospace Technology Institute. We need to ensure the UK sector continues to compete as a world leader.”