The Biggest Challenges In The Aerospace Industry

2. Bridging The Skills Gap

One of the most pressing challenges in the aerospace industry is the widening skills gap in the UK. Brexit’s impact has already made it more challenging to attract skilled talent from the UK, and the situation could become even more complicated following Donald Trump’s re-election.

Trump’s potential tightening of US immigration policies may restrict the flow of aerospace professionals from the US or allied nations, further limiting the talent pool for UK manufacturers.

Meanwhile, the rapid development of advanced technologies like AI and next-gen manufacturing is driving the demand for specialised skills that the UK workforce is not fully equipped to meet. 

For instance, an increasing need for machine learning expertise to optimise aircraft performance. The UK’s AI skills gap poses a threat to the sector’s ability to innovate and remain competitive. 

To address these challenges, UK aerospace companies will need to invest in developing robust talent with skills in demand for 2025.

This includes expanding domestic training initiatives, partnering with universities to align academic programs with industry needs, and creating apprenticeship schemes tailored to the requirements of next-generation technology. 

3. Decarbonisation Pressures

Reducing the environmental impact of the UK aerospace industry is essential to its future. With the UK’s ambitious goals set out in the AGP’s Destination Net Zero Strategy, the sector is under increasing pressure to meet net-zero targets in aviation. 

Net technologies are a significant part of the solution, from the development of lighter materials to innovations like hydrogen-powered aircraft. The sector is also focused on improving existing technologies, such as reducing contrails, which contribute to global warming.

The Aerospace Technology Institute (ATI) is leading here, supporting hydrogen technology development, with test infrastructure, research and skills at the core of their strategy. This is part of a broader effort to decarbonise the sector, alongside initiatives like Sustainable Aviation Fuel (SAF). 

SAF, derived from sustainable feedstocks, is seen as one of the most effective ways to reduce carbon emissions. The UK’s commitment to introducing a SAF Mandate, requiring aircraft operators to use 10% SAF by 2030, is a major step in meeting decarbonisation goals. 

As demand for these green technologies increases along the UK’s drive towards decarbonisation, there will be a growing need for skilled professionals in fields like sustainable fuel development, hydrogen technology, and carbon-neutral aircraft design. 

Recruiting and developing talent in these areas will be key to achieving the aerospace sector’s sustainability goals, while remaining competitive as the market advances.

4. Supply Chain Vulnerabilities

Another example of challenges facing the aerospace industry is the reshaping of the aerospace supply chain. The aerospace industry is currently facing issues in managing its supply chains as the demand for new aircraft continues to rise. 

The global air traffic demand is forecasted to grow by 4.6% annually up to 2034, requiring 33,000 new aircraft. This growth is placing pressure on Original Equipment Manufacturers (OEMs) to ensure their supply chains can keep pace without compromising quality or cost efficiency.

Geopolitical tensions surrounding the US-China trade conflict and potential strains in US-UK relations under Trump’s re-election, add another layer of complexity. 

Trump’s ‘America First’ agenda could prioritise domestic US suppliers over international collaborations, creating additional pressure on UK manufacturers. New tariffs, export restrictions, or sanctions may disrupt the flow of essential aerospace components and raw materials. 

Aerospace supply chains were already on shaky ground before recent disruptions. Between 2020 and 2023, aerospace suppliers saw a 9% decline in financial health, while automotive and electronics sectors saw improvements or stability. This highlights the industry’s vulnerability to shocks and the need for stronger, diversified supply chains. 

In response, UK aerospace manufacturers may need to strengthen domestic supply chains, explore new trade partnerships, and renegotiate existing agreements to prepare for US policy shifts. 

Equally important will be recruiting professionals with supply chain management expertise, who can guide the sector through these challenges.

How Can We Help

We hope that our post on the biggest challenges in the aerospace industry helps shed light on the issues the sector is facing today.

At Meritus, we connect aerospace teams with talented professionals to help them remain competitive as the industry changes. 

Submit a vacancy with us and let’s get started strengthening your team.