The UK is the second-largest aerospace manufacturer in the world behind the US and the fourth-largest aerospace exporter.
The report predicts continued growth in air travel, particularly in emerging economies, as well as demand for spacecraft, rockets and satellites.
“By staying at the forefront of cutting-edge technologies, aerospace manufacturers have managed to retain a high share of the global market despite fundamental changes in international value chains,” said EEF senior economist George Nikolaidis.
“There are risks ahead no doubt but the sector looks well positioned to harness these challenges and remain a key player in the global aerospace industry.”
The report highlights key trends in the sector that the UK is benefiting from: 3D printing, the use of composites, and space tourism.
“Companies in every part of the country are demonstrating their ability to compete for business around the world and I am confident this will continue,” Paul Everitt, chief executive of the aerospace and defence trade body ADS, told PE.
“We are seeing one of the biggest backlogs of aircraft orders on record. Healthy long-term demand for aircraft is good news, but there must be no room for complacency.”
Everitt warned that the government’s new industrial strategy must make a strong commitment to the aerospace sector, with a focus on innovation and further improvements in productivity.
“As the UK prepares to leave the European Union, remaining globally competitive and at the cutting edge of technological development will be our best response to challenges and uncertainties,” he said.