The UK Aerospace Industry looks to remain strong, even though losses are seen in the sector with Rolls Royce reporting a pretax loss of £2.15bn in its half year results.
The statement from Michael Minall, director and aerospace sector specialist at supply chain firm, Vendigital, claims the loss is due to hedge book valuation adjustments from the fallout of Britain leaving the EU and subsequently the fall in the pound. However, even with the early indicators pointing towards losses, the aerospace industry is still going strong and requirements for new aircraft and engines to power them is looking positive.
Order intakes in the sector have climbed significantly in recent years and businesses such as Rolls-Royce and their suppliers have galvanised their position by securing international orders and making significant efficiency and productivity gains. The length and sheer volume of the contracts in place should mean a secure work load for businesses in the Aerospace sector for the foreseeable future.
There are many uncertainties that Britain will face in the run up to leaving the EU, but aerospace businesses in the UK do at least have the aforementioned positive factors in their favour. Planning ahead and staying focused is a must in the months and even years that follow Brexit, but looking for new opportunities that can be incorporated with up and coming trade deals with countries like France and Germany will be key.