Will Brexit make the UK’s aerospace industry lose altitude?

UK Aerospace: the impact of Brexit, a new IMechE report examines the impact of Brexit on the sector and its access to a multitrillion-pound global market.

The UK’s aerospace industry is in urgent need of clarity and certainty, says the author of a newly published report 'UK Aerospace: the impact of Brexit' for the Institution of Mechanical Engineers.

Dr Arnold Gad-Briggs, the executive director of EGB Engineering and member of the Institution, was commissioned by the Institution to explore the potential impact of failed negotiations on the world’s second largest aerospace industry.

His report warns that if the UK crashes out of the European Union without a deal, it risks losing its world-leading role, along with access to a global market expected to swell to £5-trillion within two decades. 

Other key findings include potential disruption in the crucial supply chain that gives the UK its competitive edge, a drop in local and foreign investment and a slump in research and development. 
 
The policy document makes three core recommendations: it urges the UK Government to maintain its strategic partnership with the EU (which has trade agreements with dozens of countries), to invest in research and innovation, and to financially support small and medium-sized businesses. 

The Twitter version? “A no-deal scenario would not be favourable to the UK,” Arnold explains. “We would lose our competitive edge.” 

To compile the report, Arnold interviewed experts in business and academia. 

The report, he says, is timely for the public and is evidence of a successful collaboration with the Institution. “It’s important that the Institution reaches out (to subject matter experts),” he says, “Within engineering, we are at fault for not being very vocal about what we do… This helps give experts a platform. Ultimately, it’s about trying to influence policy, while being very proud of what we do and how we affect change.” 

The UK’s aerospace industry employs over 120,000 people and is worth an estimated £35-billion. It’s home to many skilled engineers and nearly 4,000 apprentices. It’s described in the report as one of the backbones of the country’s economy.   
 
“But we are at risk of slipping down the ladder if we leave without a deal,” warns Arnold.

As aerospace companies merge to form global giants, and with a limited number of demanding buyers (including powerful governments), competition has become fierce, he says. 

To add to the pressure, new players from the EU, America and Asia are entering the market. For all these reasons, the report finds, it’s important for the UK to maintain its strategic partnerships and the supply chain that helps to provide a competitive advantage. 
If it succeeds, it will continue a long, proud history of innovation in aerospace. If it fails, it may just miss its boarding call for the next generation of aircraft.