by Megan Lohden

The aerospace, defence security, and space sector was worth a combined £38.2 billion to the UK economy last year, according to the latest figures published by ADS Group.

The ADS Aerospace Sector Outlook, published ahead of next month’s Farnborough International Airshow, estimated it was worth £10.9 billion to the UK economy, an increase of 16% on 2013.

Latest jobs data across aerospace, defence, security, and space revealed employment was up a third on 2013, with a workforce of 427,500 in 2023.

Around 23,000 of these jobs were apprenticeships, with two-thirds located outside of London and the South East.

These figures highlight 104,000 direct jobs in the aerospace sector, with a median salary of £4.7k – 39% higher than the UK average.

With almost half of industry turnover generated through exports, ADS figures pointed to 32% growth, totalling £38.7 billion last year.

According to the trade association, the figures represent a 40% growth in turnover for businesses in these sectors, reaching a combined £88.4 billion in 2023.

Keven Craven, chief executive of ADS Group, said: “ADS sectors are at the heart of UK advanced manufacturing and innovative digital services. Our true value extends beyond our economic footprint, underpinning UK society, families, and our way of life.

“…our industries deliver on UK prosperity and innovation, providing a hub for advanced manufacturing, and driving our decarbonization agenda.”

ADS said the UK’s defence sector has remained agile considering an increasingly challenging geopolitical environment.

The defence sector sustains 164,000 jobs in the UK, that number having grown 16% between 2013 and 2023. The average salary in the sector is 39.9k, 14% higher than the UK average.

Craven added: “The true value of our defence sector – providing safety, security, and prosperity throughout the UK – cannot be quantified.”

Aimie Stone, chief economist at ADS Group said: “The latest figures reflect. The continued buoyancy, resilience, and economic resolve that our sectors continue to deliver to the UK.

“Despite a global pandemic stalling manufacturing productivity, an ongoing critical skills gap, and demand outstripping capacity, we are still seeing strong long-term growth indicators as we continue through 2024.”

Stone added: “Despite the lasting long and short-term impacts of the covid-19 pandemic, it continues to add huge value to the UK economy.”