Britain's Aerospace Industry Overwhelmingly Wants to Stay in EU

Strategic Insights -

Britain's £56bn aerospace, defence, security, and space industry is fiercely opposed to the UK leaving the European Union, fearing that withdrawal would harm the high-tech sector. A major poll of companies in the sector found 86% of them believe it would be better for their prospects if the country stayed in the EU. The poll, conducted by industry trade association ADS, also found that the biggest benefits of being part of the EU were free trade and the ability to bring in talent from around Europe to help plug skills gaps. Companies in the sector want to see changes to maximize the benefits of being part of the bloc, including greater research and development funding for British companies and more engagement with Brussels.

Key Takeaways:

  • 86% of ADS members polled believed it would be better for their prospects if the UK stayed in the EU.
  • Just 2% of the 900 members polled from industry trade association ADS backed Britain leaving the European Union.
  • Free trade was seen as the biggest benefit of being part of the EU, with almost six out of 10 businesses citing it.
  • Simplification of regulation and tariffs within the bloc, and the positive economic impact that being in Europe has on the UK, were also cited as benefits.
  • 91% of the sector's £29.2bn annual turnover is exported, with the sector directly employing almost 111,000 people on salaries 50% above the national average.
  • Companies in the sector want to see changes to maximize the benefits of being part of the EU, including greater research and development funding for British companies and more engagement with Brussels.
  • The lack of British nationals working within the EU bureaucracy was seen to be harming the UK's ability to have an effect on how the system operates.

Statistics:

  • £56bn: The value of Britain's aerospace, defence, security, and space industry.
  • 86%: The percentage of ADS members polled that believed it would be better for their prospects if the UK stayed in the EU.
  • 2%: The percentage of ADS members polled that backed Britain leaving the European Union.
  • 900: The number of ADS members polled.
  • £29.2bn: The annual turnover of the aerospace sector in Britain.
  • 91%: The percentage of the sector's annual turnover that is exported.
  • 111,000: The number of people directly employed in the aerospace sector, earning salaries 50% above the national average.

Sources:

  • Paul Everitt, chief executive of ADS
  • Nigel Stein, chief executive of FTSE 100-listed aerospace parts supplier GKN
  • Airbus's UK chief Paul Kahn
  • Sir Mike Rake, head of business lobby group CBI
  • Industry trade association ADS
  • The Times