The report – based upon analysis provided by S&P Global Market Intelligence – demonstrates that the European aerospace and defence industry in 2022 sustained its post-pandemic economic resurgence. Both the civil and defence sectors experienced robust growth, witnessing substantial increases in turnover and employment, surpassing pre-pandemic levels.
The growth in the civil aviation sector was largely driven by the resurgence of air travel that continued towards pre-pandemic levels. Simultaneously, the war unleashed by Russia against Ukraine led to increased demand for defence products and services, driven by both support for Ukraine and a reassessment of defence preparedness in Europe with the aim of strengthening Europe’s own capabilities.
At a time when all indicators pointed towards the need to scale up production to satisfy surging demand in both sectors, however, fresh challenges emerged, encompassing supply-chain bottlenecks, shortages of critical raw materials and electronic components, along with trade restrictions resulting from sanctions imposed on Russia. Additionally, the combination of soaring inflation and escalating energy costs have further compounded this already complex and demanding situation.
“I am impressed by how our industry – represented by ASD and serving over 4,000 member companies drawn from right across Europe – has come together to confront multiple overlapping geopolitical and economic crises over the past years. The figures presented in this annual report demonstrate the ability to adapt and the resilience of the European aerospace and defence industries. While performance in 2022 highlighted the industry’s strength and strategic importance for Europe, it also unveiled a number of challenges that need to be addressed effectively by policymakers to enable our industry to ramp up production to meet growing demand and deliver on our societal mission to connect and protect,” said ASD President and CEO of Airbus, Guillaume Faury.
“The upward trend is without a doubt positive. Yet it is also clear that with regards to defence, we must step up our production capacities and stocks in the light of the paradigm shift that has taken place in Europe following the invasion of Ukraine. For that, we in Europe must take more responsibility which comes with a certain price tag. Defence companies are ready to play their part, but there must be a risk sharing between industry and the public sector. A capable and resilient defence is the most important investment that we can make together for a secure and sustainable Europe,” commented ASD Vice-Chairman of the Board and CEO of Saab, Micael Johansson.
“Ramping up defence production capacities requires long-term planning and commitment. Companies need to invest in production facilities, recruit and train personnel and address supply-chain challenges. In aeronautics, ramping up production to meet increased demand has also become an increasingly critical issue, particularly at a time of rising energy prices, a shortage of skilled labour and major disruptions of supply chains for basic component and raw materials. We place our trust in the EU institutions and national governments to collaborate closely with industry to effectively address these issues,” complemented ASD Secretary General Jan Pie.
The Facts & Figures report also includes data quantifying the broader economic impact of the industry. Overall, the aerospace and defence sector represented by ASD supported more than 3.5 million jobs across Europe and contributed €258bn to European GDP in 2022.
The Facts & Figures report can be read here.
