First comprehensive study reveals robust aerospace, defence and marine sector

An industry-led study providing the first-ever comprehensive picture of the size of Scotland’s aerospace, defence and marine sector launches today (Thursday 14 October) at the University of Strathclyde’s Advanced Forming Research Centre near Glasgow Airport.

Commissioned by Scottish Enterprise’s Aerospace, Defence and Marine (AD&M) team in association with industry trade body A|D|S Scotland, the Industry Baseline Study has been undertaken to assess the size, scope and economic impact of the sector in Scotland.

The 108-page study reveals that in Scotland: 842 companies have involvement in the sector; it employs 40,000 people; it generates a combined annual turnover of £5.2 billion, creating £2.1 billion Gross Value Added (GVA) to the Scottish economy.

Jim Mather MSP, Minister for Enterprise, Energy and Tourism said: "The Scottish Government welcomes this study and are proud to recognise the strong and vital contribution the aerospace, defence and marine industry makes to Scotland's economy.

"This important high value sector substantially enhances Scotland's excellent reputation for innovation and technology, employs a skilled workforce of some 40,000 including thousands of support jobs through local supply chains. The industry attracts significant inward investment which benefits our economy. The Scottish Government continues to support the sector and to create opportunities for employment and economic growth in this area, in whatever ways we can."

Lena Wilson, chief executive of Scottish Enterprise, said: "The Aerospace, Defence and Marine sector is a significant contributor to the Scottish economy. With its highly skilled workforce and world-leading engineering and design capabilities, Scotland is in a great position to further strengthen its footprint in this important sector. 

“Scotland's full potential can best be realised by even closer working between the private sector, academia and public sector and we are committed to pursuing a strategy which is designed to do just that."

Neil McManus, chairman, A|D|S Scotland said: "This study builds upon previous reports and shows once again the size, growth and importance of this industry to Scotland.  I'm delighted to hear just how many companies are operating in this vitally important sector.

“It is crucial we have a baseline against which to measure our success in growing the sector in Scotland and this study provides that."

Other study findings include:

• Scotland boasts the presence of global aerospace, defence and marine companies in addition to a diverse range of indigenous companies.
• There is a good supply of university graduates in Scotland, with excellent design and engineering capabilities.
• Research and Development and innovation capabilities are seen as high, both in global companies and among the industry’s supply chain in Scotland.
• There is a strong capability and a high concentration of engineering departments in universities relative to Scotland’s population.
• Traditional sectors such as marine are well placed to help develop the growing renewable energy industry.
• The industry requires a continuous supply of ‘fresh blood’ to support an ageing and highly skilled workforce.

The July 2010 study was undertaken by SQW Consulting, which used a combination of desk research, interviews with key players in the sector and a survey to reach its findings. 

Its results are revealed one year after a new strategy was launched by the Aerospace, Defence and Marine Industry Advisory Group.  A key plank of this strategy was to establish the size and scope of the sector to benchmark future performance. 

The strategy aims to encourage greater collaboration between the public, private and academic sectors, to increase research and development activity, particularly involving Scotland’s small and medium sized enterprise sector, and to further develop the industry’s highly skilled and motivated workforce. 

It does so against the backdrop of the industry’s ambitious vision – set out by A|D|S Scotland – of doubling industry sales by 2023.

The detailed findings of the study announced today will now form a foundation for the development of further actions to accelerate the growth of the industry and the jobs and economic impact that it generates.