ASD: new report demonstrates European aerospace and defence industries’ significant contribution to European economy

Source: Aerospace, Security and Defence Industries Association of Europe (ASD)

The Aerospace, Security and Defence Industries Association of Europe (ASD) today presented the first Economic Impact Report on the wider economic footprint of the European Aerospace and Defence Industries.

The report by S&P Global Market Intelligence revealed the extent of the Aerospace and Defence sectors’ contribution to the European economy during 2021 in terms of employment, sales activity (turnover), contribution to gross domestic product (GDP) and wages.

 

 

The key findings are:
Total employment level supported by European A&D industry was 3.6 million people, including direct, indirect and induced employment. Each direct job within the European A&D industry generates a further 2.8 supporting jobs.
Total turnover supported by the industry was €578bn. Every Euro of A&D industry turnover generates an additional €1.40 of supporting indirect and induced turnover.
Total GDP supported by the industry was €240bn:
If the GDP contribution of the European A&D industry was a country in its own right, it would
position the sector at the median GDP level among EU/European countries, with a GDP larger than the economies of 14 countries within the reference region.
Every Euro in A&D turnover generates €0.99 of GDP, a ratio that puts the European A&D industries
among the higher value-adding sectors in the European economy.
Total wages paid by the industry were €141bn. Direct employees within the European A&D industry are generally highly-skilled and well compensated, with an average income in 2021 of €56,000.

This is 43% higher than the average wage across Europe.

ASD President and CEO of Leonardo, Alessandro Profumo, said at a press conference in Brussels: “Our industries play a key role in enabling a sustainable, technologically sovereign and resilient Europe. Constantly reinventing and pushing the boundaries of technology, these highly strategic domains in which we operate are important global drivers of innovation. In addition to the strategic importance of our sector, this report shows the significant contributions which our industries make to the European economy and jobs.”

Guillaume Faury, Vice-Chairman of the ASD Board and CEO of Airbus, added: “The Aerospace and Defence sectors drive prosperity and provide sustainable growth in Europe and across the globe. The investment we make in highly skilled jobs, innovation, research and development, and throughout our extensive supply chains, supports millions of people and the communities in which they live.”

ASD Secretary General Jan Pie complemented: “The indirect and induced impact of our industries on Europe’s GDP, employment and wages are often overlooked and underestimated when assessing the important contribution the Aerospace and Defence Industries makes to Europe’s prosperity. For the first time we have a comprehensive assessment of our economic footprint that is based on a scientific methodology.”

ASD has been producing a Facts & Figures report for many years (the 2022 edition has also been published and can be retrieved here). This has given stakeholders a good understanding of the size of the European Aerospace and Defence Industries including the direct jobs supported. The new Economic Impact Report seeks to complement the direct industry details by overlaying additional information on the wider economic impacts of the industry and can be retrieved here.

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