Aircraft, Engine & Parts Manufacturing in the UK Industry Market Research Report Now Updated by IBISWorld

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The UK Aircraft, Engine and Parts Manufacturing industry is the second largest in the world, after the United States' industry. It is a major source of investment, research and development, and has particularly strong positions in the production and assembly of aircraft wings and the design and manufacture of aircraft engines. Industry revenue is estimated to have grown at an annualised 6.0% over the five years through 2012-13, to reach £24.5 billion. Industry revenue grew throughout the recession, reflecting the development of parts made from composite materials, a significant backlog of orders and substantial growth in defence spending worldwide. Orders for aircraft and aircraft equipment are typically placed many years in advance. Major airlines renew their fleets according to fairly fixed timelines, defence spending on aerospace is typically determined years in advance and smaller customers usually order aircraft during prosperous times. As a result, even during a recession, production continues as planned. The industry is expected to make a profit of about £2.45 billion in 2012-13, well up from the cyclical low of £1.72 billion reached in 2010-11. Industry revenue is expected to continue to grow over the next five years to 2017-18. Demand will flow from the mass production of the Boeing 787 Dreamliner and its parts, the introduction of the A350 programme and the rising popularity of composite materials. However, competition from developing countries will strengthen. For these reasons, industry research firm IBISWorld has updated its report on the Aircraft, Engine & Parts Manufacturing industry.

IBISWorld Market Research

IBISWorld Market Research

UK aircraft, engine and parts production ranks second worldwide

The UK Aircraft, Engine and Parts Manufacturing industry is the second largest in the world, after the United States' industry. According to IBISWorld industry analyst Teruni Nugawila “it is a major source of investment, research and development, and has particularly strong positions in the production and assembly of aircraft wings and the design and manufacture of aircraft engines”.
Industry revenue is estimated to have grown at an annualised 6.0% over the five years through 2012-13, to reach £24.5 billion. Nugawila adds, “industry revenue grew throughout the recession, reflecting the development of parts made from composite materials, a significant backlog of orders and substantial growth in defence spending worldwide”. Orders for aircraft and aircraft equipment are typically placed many years in advance. Major airlines renew their fleets according to fairly fixed timelines, defence spending on aerospace is typically determined years in advance and smaller customers usually order aircraft during prosperous times. As a result, even during a recession, production continues as planned. The industry is expected to make a profit of about £2.45 billion in 2012-13, well up from the cyclical low of £1.72 billion reached in 2010-11. Industry revenue is expected to continue to grow over the next five years to 2017-18. Demand will flow from the mass production of the Boeing 787 Dreamliner and its parts, the introduction of the A350 programme and the rising popularity of composite materials. However, competition from developing countries will strengthen.
The Aircraft, Engine & Parts Manufacturing industry has a medium level of market share concentration, with the top four players holding about 49% of the market. The industry is characterised by a handful of extremely large players, surrounded by a competitive fringe comprising many firms of small to medium size. The United Kingdom is a major global producer of aircraft wings and engines, and a substantial producer of defence-related aerospace equipment and products. The largest players in the industry benefit from economies of scale in production, while smaller firms tend to provide highly specialised equipment. Major companies include EADS UK (Airbus), BAE Systems, Rolls-Royce and Bombadier Aerospace.
For more information on the Aircraft, Engine & Parts Manufacturing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Businesses in this industry manufacture complete aircraft and spacecraft, engines, propulsion units and other related equipment and parts, including military and civil aircraft and guided missiles.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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