A new PwC report that assesses the attractiveness of aerospace manufacturing investments by nations has ranked the UK, with revenues of US$46billion, top in Europe and within the top four globally.
The 2019 Aerospace Manufacturing Attractiveness report assesses a range of aspects such as cost, economy, infrastructure, labour, industry, and tax policy. It ranked the US in top spot, closely followed by Canada, Singapore and the UK. Germany and the Netherlands follow closely behind at 7th and 8th respectively.
This analysis takes into consideration geopolitical risks, such as Brexit, with the UK judged to remain a strong investment competitor as a result of its robust A&D industry.
Roland Sonnenberg, head of UK aerospace and defence at PwC, said: “We’ve seen a lot of speculation that uncertainty over Brexit terms and the potential disruption to global supply chains may impact the ability to attract global investment and meet production timetables. But this analysis shows that the UK continues to be a strong competitor when it comes to investment and expansion opportunities.
“The launch of a new Future Flight Challenge initiative at the end of last year, which saw the government commit up to £125 million to develop new technologies such as drones and urban air vehicles has gone some way to stabilising the UK’s 2019 ranking, especially as industry is expected to more than match this investment.
“The UK has a real depth of talent and capability in the sector, which remains well positioned to support the economy as we continue to make a strong and vital contribution across global markets.”
The report also highlights an announcement in July 2018 by the UK Defence Minister, in which the government has pledged to invest £2bn over the next six years in the next generation fighter jet, the ‘Tempest’, along with the intention to seek international partners to provide additional funding.
According to the report, the global Aerospace and Defence (A&D) industry delivered record levels of operating revenue and operating profit in 2018, both increasing by 9% over the prior year. It also notes that commercial aerospace is forecast to continue to grow at roughly twice the rate of global GDP for the foreseeable future.
The 2019 Aerospace manufacturing attractiveness rankings were determined through the combination of seven category ranks. The category ranks were all weighted equally, although the measures used to determine category ranks were weighted to account for relevance and the availability of quantitative information.
The full report is available to view via www.pwc.co.uk/aerospacemanufacturing