The aerospace industry and its supply chain need lower energy costs and more certainty, the CEO of the Farnborough Aerospace Consortium (FAC) has said.
Alan Fisher is urging the government to address issues facing his members in the Budget on October 28th.
High energy costs, high employment costs and uncertainty about defence spending is holding back growth, he says.
FAC represents hundreds of businesses in the aerospace, aviation, defence and space sectors – and their supply chains.
Alan added that the current situation means members are not putting as much money into research and development, which is how the UK has remained at the forefront of the sector.
The country’s aerospace industry is the second largest in the world behind the US and contributes more than £100bn to the economy each year.
Alan said: “The government wants growth and the aerospace sector, being one of the largest in the country, can help deliver that.
“Despite the sky-high energy costs and growing employment costs it has been incredibly resilient, but it can’t go on for ever.
“Many of our members are SMEs – the backbone of the UK economy – and work in the supply chains for the larger firms, including those in defence.
“With growing international threats our defence spending is set to rise, but there is uncertainty about whether the investment will arrive, and if it does arrive, when.
“Businesses need certainty in order to plan ahead, which is why I’m calling for that to be set out in the Budget.
“It’s worth remembering that you can’t have social security without national security. Defence has to come first, and bad actors have to understand that the country is serious about it.
“But it looks like the spending review has been pushed further back, possibly to next autumn, having been previously pushed back to the spring.
“Our MP covering Farnborough, Alex Baker, has been a great support to us at FAC and if the Budget can deliver on what the government professes to want, then we can help fuel the national economy.
“Our membership has grown rapidly over the last year and the Farnborough International Airshow this summer was a huge success.
“A large amount of business was done at our stand with companies from around the world, but there is so much more that we could be doing.
“The industry is looking out for innovations and that is traditionally what the UK’s aerospace, aviation, defence and space firms have been doing – with great support from companies within the supply chains.
“With lower energy and employment costs, certainty about defence spending and more incentives for R&D the sector could really help power economic growth.”
