Balaji Srimoolanathan
ADS Director – Aerospace & Space
The Government’s Industrial Strategy Green Paper acknowledges aerospace as crucial for long-term growth, but meaningful policy action is now needed to address sector challenges.
Challenges across the supply chain, barriers in regulation and lack of investment in industrialising world-leading UK innovation have been holding aerospace back from reaching its potential in recent years. This stifles investment, innovation and the UK’s international competitiveness.
Achieving goals within the aerospace sector
The Government has already taken a vital first step to breaking down barriers. Their decision to ensure a decade of funding for aerospace innovation that totals almost £1 billion recognises the long-term nature of funding cycles within aerospace. The role that the Government can play by acting as a cornerstone investor to crowd in private investment to the sector is critical to stimulate further growth. This is also true of the wider range of tax credits and allowances the Government uses to increase available R&D capital.
An Industrial Strategy has the
power to unite different areas of
Government, industry and investors.
Strategy strengthens aerospace sector
An Industrial Strategy has the power to unite different areas of Government, industry and investors towards a common goal. This is crucial for driving growth and tackling the skills shortages in critical areas that hold back productivity and efficiency for aerospace businesses of all sizes.
The supply chain in aerospace is long and complex, but it is also the bedrock of the sector, and its success is vital. An Industrial Strategy for aerospace must empower businesses throughout the supply chain to become more resilient and dynamic.
Aerospace drives UK growth
By implementing these changes and working in close partnership with industry throughout the process, the Industrial Strategy can create the right environment for the aerospace sector to thrive. This is a sector that already supports 104,000 highly skilled, high-productivity jobs across the UK, generated £2.8 billion in private investment in 2022 and earns £20 billion in exports. However, it can deliver even more. The aerospace sector exists as part of the wider economy; its continued growth and prosperity benefit the whole country. The future of aerospace matters beyond the sector because it is key to the economic success of the UK as a whole.
