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Brief Overview of the Key Contributing Industries to the UK Economy

  • By Steven Hays
  • Published 02/27/2012

While the recession hit every sector of the UK economy in the recent past, and the effects are still existent on most of them, one sector that exhibited an increase in overall sales in 2010 was the UK aerospace industry. This industrial sector surely is one of the driving forces of the nation’s economic revival and growth. One of the most important manufacturing industries of the country, this sector is also one of the essential factors affecting the technological advancement of the country. The revenue earned from this economic sector amounted to £22.6 billion in 2009; it increased by 2.1% and reached £23.06 billion in 2010.

The rise in deliveries and the continuous aftermarket recovery made it possible to achieve an increase in revenue, even in such adverse economic conditions. Another contributory factor to this growth is the steady increase in military aircraft sales. This trend has been continuing since 2002. Though market analysis reports suggest that this may slacken in the coming years, the defence market was a major contributor to the overall aerospace turnover. The sales in this sub-sector accounted for 52% of the total turnover.

While the export sales to the US rose to £3.1 billion in 2010 (an increase by 8.1%), the export sales to the rest of the countries rose to £6.5 billion (an increase by 4%). The statistics of the aerospace industry of UK are enough to highlight its export centric nature. In 2010, the exports accounted for approximately 70% of the total revenue earned. Again, civil activities feature as the major player in this export oriented economic sector. While the civil side occupied 39% of the export sales, the defence side occupied 31% of it. The main factor affecting sales is the national and international economic conditions, and any slight variation in these may affect the sales, in different degrees.

The employment of skilled and knowledgeable workforce in this industrial sector also ensures betterment of the country’s economy. Employment levels recorded in 2010 stood at 96,510. The labour productivity per worker increased to £239,000 per year, which is an increase by 6% from last year. The employment levels are predicted to go high in the coming years due to the increased activity in the different sub-sectors of the aerospace industry, especially the civil side.

The continuous growth that the aerospace industry exhibited, even amidst adverse conditions, makes it one of the preferred investment options for national and international companies. Another sector that also acts as the economic engines of the nation is the marine industry UK. Contributing approximately £3.7 billion in 2011 (as per the reports from the Marine Industries Leadership Council), these industries are a major factor affecting the revival of the country’s economic condition in the post recession period. Expansion in the global markets and the demand for marine renewable energy ensures that this growth would continue in the coming years as well.

The continuous growth of the aerospace, defence and marine industries ensured that the UK economy revived from the effects of recession.

Author Bio: Steven Hayes is a business consultant based in Hampshire. He provides a brief overview of the way the UK aerospace industry, defence industry and marine industry showed progress even during the recession and post recession period.



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