The UK aerospace and defense contingent has returned in force at this year’s Paris Air Show, with 61 member companies of the industry association ADS jointly exhibiting within the national pavilion in Hall 2b. For the first time, the UK pavilion is co-located with a "start-up zone" run by the Aerospace Technology Institute and Boeing’s Aerospace Xelerated program.
The new zone includes about 20 small- and medium-sized enterprises that might not otherwise have been able to exhibit on the global stage. Part of the 2023 show’s new "Start Me Up" program, it helps start-ups get exposure throughout the week. Exhibiting UK companies include Plyable, Aiber, AireXpert, Datch, Productive Machines, SensaWeb, Signol, Airline Pilot Club, Amygda, Flare Bright, LexX Technologies, Pegasus, ToffeeAM, Aerosens, Aiir Innovations, Conductor Software, Dessia Technologies, Nabla Mobility, Quasir, and Zetamtion.
Revenues Up, But UK Industry Faces Inflation and Brexit Challenges
According to the latest data published in May by ADS, the aerospace sector contributes £10.9 billion ($13.9 billion) to the UK economy. In 2022, revenues grew by 20 percent from £22.4 billion ($27.8 billion) to £27 billion, while exports increased in value from £15.2 billion to £18.6 billion.
During a pre-Paris show briefing last month, ADS officials reported that exceptionally high levels of inflation (10 percent plus) and the soaring interest rates (4.5 percent) imposed in a bid to suppress it account for the biggest single headache facing UK aerospace and defense companies. The resulting squeeze on finances impedes the ability of companies to make the investments needed to overcome continuing supply chain logjams that, in turn, constrain output and therefore revenues, said the group’s CEO, Kevin Craven.
ADS continues to urge the UK government to do more to ease pressures resulting directly from the UK’s exit from the European Union, including by relaxing post-Brexit visa restrictions on skilled staff from EU countries. But that effort remains a point of contention dividing the ruling Conservative party and strains on the public finances could threaten future levels of support for research and development in the UK.
The fact that the country faces a general election that must be held no later than January 2025—but will very likely be called in 2024—does not help to create a clear outlook for the industry. “Most businesses are seeking certainty about the climate against which to invest and it’s a challenging time with the election next year, because it’s hard to be sure what business conditions will be like,” concluded Craven.