With an annual income of nearly USD 46 billion, the U.K. aerospace industry positions above the rest of Europe. The U.K. defense ministry recently announced a USD 2.5 billion funding through 2025, for the next generation of British fighter jets, the Tempest.
FREMONT, CA: A recent report that assessed the attractiveness of aerospace manufacturing investments by nations ranked the U.K. in fourth place, making it the only European country among the top five. The U.S. topped the table, followed by Canada, and Singapore, while Australia finished fifth. The record critically analyzes multiple factors such as cost, infrastructure, labor, industry, geopolitical risk, tax policy, and economy.
Despite scoring remarkably well in the labor sector, the geopolitical risk and poor infrastructure involved can impact future investments. Over the past few years, the aviation and aerospace industry has seen a period of turbulence. The growing competition and skyrocketing fuel prices forced most businesses to reduce their profit margins. The drop in oil prices and increasing demands from rising markets assisted the aerospace industry to return to normalcy. Lower commodity costs made flying cheaper than ever before, something customers subsequently benefitted from.
The U.K. government seized on this occasion and introduced multiple schemes and policies to encourage investments in the aerospace sector. The government-backed the new Future Flight Challenge project with a funding of USD 160 million. The initiative was directed toward the development of new technologies like urban vehicles and drones. Despite the sustained political and economic turmoil that Britain has undergone, these initiatives played a significant role in establishing the U.K. as a chief aerospace manufacturing nation.
At present, the U.K. has one of the most strong aerospace and defense industries in the world. With an annual income of nearly USD 46 billion, the U.K. aerospace industry positions above the rest of Europe. The U.K. defense ministry recently announced a USD 2.5 billion funding through 2025, for the next generation of British fighter jets, the Tempest. Additionally, Britain is also looking for other partners to invest in the project that would further toughen the aviation and aerospace industry.
Britain's capability to access skilled labor, well-maintained infrastructure and a developed and mature overall A&D industry places them over the top of other European countries. The U.S and Canada both are geopolitically stable, and Singapore has one of the lowest tax rates, placing them ahead of the U.K. Unlike the other states, Britain's aviation and aerospace industry is an export centric one. Unfortunately, Brexit is likely to influence the industry in the future unfavorably.
Check This Out: Top Aerospace Tech Companies