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Worst Ever Quarter For The Aerospace Industry Due To Pandemic

Worst Ever Quarter For The Aerospace Industry Due To Pandemic
With record low orders for new aircraft because of the collapse in travel caused by the coronavirus pandemic, the worst quarter ever on record was experienced by the global aerospace industry.
According to the aerospace and defence lobby group ADS, only 13 orders in July and August were received by aircraft manufacturers.  Companies saw no new orders in September. In comparison, orders for 152 aircraft was placed in ted same period a year ago. 
According to separate figures reported in the media, with the plane manufacturers Airbus and Boeing and their suppliers adjusting to the environment of lower demands, more than one tenth of the jobs in the aerospace industry in the United Kingdom could go.
According to legally required notices of possible redundancies received by the Unite union, at least 12,000 aerospace workers are either being made redundant or are at risk of losing their jobs. According to ADS, in 2019 there were 111,000 people working in the aerospace manufacturing and maintenance sectors.
Airbus and the engine manufacturer Rolls-Royce will account for a large number of those job losses. Both the companies are in the process of cutting down thousands of jobs. However, the impact to the large manufacturing companies is also being felt down their supply chains and smaller firms in the UK and elsewhere in the world are also reducing employee strengths.
“There’s a lot of focus on the prime [manufacturers], but the weakest parts of the chain are the customers and suppliers. The danger is we lose these companies and they don’t come back,” said the UK Labour MP Mark Tami, whose Alyn and Deeside constituency contains Airbus’s UK factory.
In order to support business which should mirror the health controls, the government should take a “tiered approach”, he said.  Such support measures should include helping out the industries that are the worst affected – such as the hospitality and aerospace industry.
While Senior, a components supplier firm, has cut 600 jobs, job cuts are also likely at the Chinese-owned metal components maker Gardner Aerospace in the UK and the Canadian manufacturer Magellan Aerospace. Both of the companies are based in north Wales.
More than 300 redundancies in south Wales and the Midlands have been announced respectively by General Electric and Collins Aerospace, owned by the weapons manufacturer Raytheon Technologies.
Support given to their aerospace industries by Germany should be matched by the UK government, said Rhys McCarthy, Unite’s national officer. The German government gave support worth €9bn as bail out for Lufthansa while a package of €15bn to the sector was given by the French government.
“Other governments around the world who value their aerospace industry have taken this information and acted,” he said. “It is time the UK government, instead of always reacting with too little and too late, actually for once gets ahead of this crisis and puts in the appropriate support that will in the long term more than pay its way back.”
In order to prepare for the industry’s recovery, access to finance was needed now by the supply chain, said Paul Everitt, ADS’s chief executive.

Christopher J. Mitchell

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