The aerospace industry continues to grapple with supply chain disruptions and regulatory challenges, as evidenced by a decline in aircraft deliveries in the first quarter of the year. According to the aerospace trade body ADS Group, 312 commercial aircraft were delivered between January and April, representing a 7.4 percent decrease compared to the same period last year. In contrast, orders for new aircraft saw a significant increase, rising by 64 percent from 38 to 64.
The latest data also indicates a 17.6 percent rise in the commercial aircraft order backlog, which grew from 13,401 to 15,753. ADS estimates that this backlog equates to a decade’s worth of work and is valued at least £250bn for the UK.
Aimie Stone, chief economist at ADS Group, commented on the situation: “The increasing divergence between the rate of aircraft deliveries and the number on backlog order makes clear that this growing, prosperous sector is being held back from its full economic potential. The supply chain in the aerospace sector is long and complex, and any production or regulatory issues can cause significant delays in aircraft production, slowing delivery rates.”
Both Boeing and Airbus, the leading manufacturers in the industry, have been significantly affected by supply chain disruptions over the past year, despite a surge in travel demand. The situation has been exacerbated by a shortage of skilled workers, many of whom left the industry during the pandemic.
Boeing, in particular, is facing considerable challenges after an incident in January when the side of an Alaska Airlines 737 Max-9 aircraft blew out mid-flight. This event has led to an investigation by the US Department of Justice and the Federal Aviation Administration. Additionally, several whistleblowers have come forward, highlighting production issues within the supply chain.
Kevin Craven, Chief Executive of ADS, emphasized the importance of addressing these challenges: “We are continuing to work with our members over production concerns. In a sector that creates £10.9bn of value and over 100,000 jobs for the UK economy, it is important that supply chain challenges are resolved and that the significant skills shortages, access to investment and regulatory issues that continue to hold back our potential rate of productivity and growth are addressed.”
Craven also called for government action: “The next government must create a comprehensive industrial strategy in collaboration with an industrial council formed of business representatives to combat issues like those faced by the aerospace sector. This will ensure the UK’s industrial base can continue to fuel economic growth and create employment for the long term.”
This situation underscores the need for strategic interventions to bolster the aerospace sector, ensuring it can meet growing demand and maintain its critical role in the economy.