Prompted by record backlogs in the commercial sector and growing national defense spending, the aerospace and defense industry has gone on a hiring spree. The number of recruits needed is exceptional, as companies continue to address skills shortages and compete for talent with other industries.
Some of the fastest growth has happened in France and Germany, which boast the most highly-developed aerospace industries in Europe and are home to major airframers Airbus, Dassault Aviation, and ATR, as well as equipment manufacturers like Thales, Safran, MTU Aero Engines, and Diehl Aerospace. In 2023, Airbus expanded its worldwide workforce by almost 14,000 employees, Safran recruited more than 18,000, and Thales Group took on 10,900 new hires (excluding work-study positions), of which women accounted for some 30 percent of the total.
According to Gifas, the trade association for France’s aeronautics and space industry, its 470 members expanded their workforce last year by 7 percent, to a record 210,00 people. This year GIFAS expects the sector to hire between 25,000 and 30,000 new employees in the country.
The German aerospace sector performed equally well in 2023. It employed 115,000 people last year, up 10 percent on 2022, while experiencing an 18 percent increase in total sales of €46 billion.
“The German aerospace industry has returned to growth after the Covid years and is employing more people than ever before," said Michael Schoellhorn, president of the German Aerospace Industries Association (BDLI). "In 2023, the industry was able to match or exceed its 2019 figures for the first time. The abundance of orders in civil aircraft construction gives us confidence that this upward trend will continue in 2024.” Of the total, civil aircraft manufacturing accounted for 81,000 jobs, representing an increase of 8,000, and the defense and space sectors each added 1,000 positions to reach totals of 24,000 and 10,000 respectively.
Brazil-based Embraer aims to hire 900 additional employees this year after adding 1,500 employees in 2023, when it returned to the pre-pandemic employment level. According to the company, it needs workforce growth to support research and development activities for new technologies, such as those it will use to make and support eVTOL aircraft, along with the expansion of aeronautical services, defense, and security products.
Mind the Skills Gap
New research from consultants McKinsey & Company has warned that while the aerospace and defense sectors have seen a boom, “headwinds" in the form of a significant gap and a rising imbalance in the ability to match demand with talent supply persist. The analysis, which McKinsey plans to present in full at the Farnborough International Airshow, confirms that the talent supply and demand gap continues to cause substantial strain on employers, and the value at stake has never been higher.
McKinsey's researchers estimated the "capturable opportunity" for a median aerospace and defense company able to recruit the right staff to total about $330 million. “For employers, this represents a clear call to action—evolve now and evolve faster or risk the delivery of the mission," the report warned. "With national security, risk to the mission is not an option.”
The U.S. Aerospace Industries Association (AIA) has acknowledged the persisting supply-demand workforce gap. “Across the aerospace and defense sector, recruitment and retention continue to be a challenge,” Alison Lynn, AIA vice president of communications told AIN ahead of the Farnborough Airshow.
High-touch, highly skilled labor continues to be the toughest segment to fill. “We’ve seen upticks in turnover across all sectors—space, commercial aviation, and defense—though we’ve seen a downtick in the services sector,” Lynn said.
In 2023, AIA member companies saw personnel turnover for reasons other than retirement reach nearly 13 percent. That represents a significant increase from the 3.8 percent average turnover rate in the U.S. “Addressing this is a priority for our members,” said Lynn.
The trade body collaborated with PwC to analyze why U.S. aerospace and defense companies continue to observe attraction and retention challenges. Despite strong labor market perceptions of the industry itself, the research—titled ‘On the Horizon: Workforce Trends in the Aerospace and Defense Industry’ indicated the higher-than-average attrition might have suffered from challenges related to employee empowerment, engagement, and the differing experiences of hourly and salaried workers.
Up to 48 percent of surveyed employees reported that they lack the necessary tools and resources to effectively and efficiently perform their jobs, despite significant investments in new tools and technologies. That number reaches 60 percent for mid-career individual contributors.
In addition, nearly half of A&D workers believe their companies do not provide them with the career mobility, advancement, and learning opportunities they seek. Those shortcomings result in lower engagement and contribute to higher-than-average quit rates. Recent research has shown that 50 percent of hourly employees quit within their first four months of employment, creating a "revolving door" that negatively affects company productivity and bottom-line profits.
AIA also is keeping a close eye on looming retirements. “Approximately 25 percent of the aerospace and defense workforce has more than 20 years of experience and is at or beyond the eligible retirement age," Lynn remarked. "To address sustained rates of turnover and prepare for looming retirements, we must proactively plan for these challenges to ensure program delivery and enable ongoing innovation.”
Moving Towards a Learning Organization
According to Embraer, internal polls show a 78 percent favorable perception about working in the company. The Brazilian airframer told AIN that in the last few years, it has worked hard to strengthen its internal culture of excellence. “We seek to identify employee needs and expectations and at the same time we provide more clarity on the attitudes that the company expects from our people as a driver of our growth strategy,” a company spokesperson explained.
Back in Europe, Thales is taking steps to become what it calls a “learning organization” and has made “talent management” the cornerstone of its new production model. The approach aims to broaden its appeal to prospective employees, maintain its competitive edge, and stay at the forefront of innovation.
Thales’s talent management strategy involves passing on skills to younger employees, training its workforce in the latest industrial methods and processes, and ensuring continuing professional development. In its latest environmental, social, and governance report, the company emphasized its success depends on its ability to hire and develop the best people during a time of “intense global competition for talent,” particularly in science and engineering skills.
According to the Aerospace and Defense Industries Association of Europe (ASD Europe), competition for talent appears both within the sector and with other sectors equally hungry for the skills that the industry demands to support growth, as well as to achieve the increasingly pressing objectives to transition to green and digital technology. Companies are prioritizing acquisition and nurturing of skills in areas such as sustainable energy, cybersecurity, artificial intelligence, and virtual/augmented reality.
“Our industrial ecosystem is a high- and new-tech sector of strategic importance, but it is not always perceived as such," a spokesperson for the Brussels-based trade body told AIN. "This perception, combined with the highly competitive environment, makes the attraction and the retainment of key digital profiles even more challenging.”
Sustainability Can be a Draw
European aerospace’s commitment to net-zero carbon dioxide (CO2) emissions and a “game-changer” mindset—the belief that they can transform the industry from within to make it more sustainable—drive interest in the sector and its companies, ASD asserted. However, to further appeal to newer generations particularly committed to environmental issues, the industry needs to enhance awareness and understanding of its net-zero CO2 commitment and the broad strategies for achieving the goal.
Turboprop aircraft manufacturer ATR believes its green credentials set it apart from other employers. “Young generations are increasingly drawn to organizations that provide meaning and have a higher purpose," said head of human resources Mayte Pedra Bruñó. "ATR's commitment to responsible connectivity resonates deeply with individuals seeking a career that positively impacts society. Our aircraft are designed to connect people and places responsibly, no matter how remote, with a focus on sustainability. This environmental consciousness makes ATR an attractive choice for those who prioritize sustainability and aspire to contribute to a more sustainable future for our industry.”
ATR's headquarters and assembly line in Toulouse, France, means it must compete with its much larger neighbor—and 50 percent shareholder—Airbus for talent. “ATR is an appealing choice for people seeking a human-sized company where their daily work can truly make a difference,” Pedra Bruñó maintained. “At ATR, every individual's contribution is recognized and valued. Our employees have the opportunity to engage directly with various aspects of our operations, collaborate closely with colleagues from other directorates, and witness the impact of their efforts firsthand. This collaborative and inclusive culture fosters a sense of purpose and belonging, creating a fulfilling work environment.”