Does UK aerospace rebound highlight possible supply chain issues?

16 October 2023

As the leading UK aerospace trade reports on record-breaking aircraft orders in the first half of 2023, concerns over the impact of electronics supply-chain remains a threat to growth.

1,667 aircraft orders secured during the initial six months of 2023

Indications of a rebound in the aerospace sector are becoming evident, as reported by ADS, with an unprecedented 1,667 aircraft orders secured during the initial six months of 2023. This marks a remarkable surge of 129% compared to the corresponding period in 2022, signifying the most prosperous first half for aircraft orders since the commencement of ADS records in 2010. ADS, is the UK trade association advancing leadership in aerospace, security, defence and space.

“The roaring aircraft orders made during H1 2023 are a very welcome sign of increasing confidence in the sector. Separately, growth in delivery figures support our ADS expectations of a return to pre-pandemic levels of manufacturing in 2024.”

Kevin Craven, CEO, ADS

Electronics supply-chain disruptions affecting the aerospace sector

A major source of concern for aircraft makers and suppliers as production of aircraft has been most affected by the shortage of engines, forgings and electrical components. It's thought these disruptions are unlikely to be resolved until mid-2024. Airbus was twice forced to cut its delivery targets last year because of supply-chain disruptions.

“We’re going to continue to have big supply chain issues in 2023, but we’re not going to deny our happiness about being in such a strongly growing sector.”
Guillaume Faury, Chief Executive Officer, Airbus SE

The energy transition in aviation continues to remain a long-term challenge

Addressing the imperative to reduce carbon footprint in air travel, accountable for 2.5% of worldwide carbon emissions as per Our World in Data, presents an enduring concern for manufacturers of aircraft and engines. The sector is progressively directing its attention toward the advancement of eco-friendly aviation fuels and hydrogen-powered aircraft. Airbus holds the belief that it will introduce the initial large-scale commercial aircraft fuelled by hydrogen by the year 2035. This aspiration might be intricate, given the substantial demand for research and development (R&D) and the nascent phase of technology adoption within the aviation realm.

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