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EUROPEAN AEROSPACE FLOURISHES AGAIN

The European aerospace industry is flourishing: Turnover is back to the peak performance from the beginning of the nineties. The Association of the European Aerospace Industry (AECMA) just recently announced the branch's ballance for 1997. In 1997 the European aerospace industry turned over 55.3 billion ECU (109 billion DM). After a low in 1995 (81.2 billion DM), the gross turnover is almost back up to the same level it was in 1990, (which was the best year since 1980 at 112.5 billion DM).

However, European aerospace industry has changed drastically since 1990. AECMA's Secretary General Dr. Peter Fichtmüller is convinced that the industry "can now focus sharply on global competition" after four years of rationalisation and adaptation. This is a must to guarantee the industry's survival.

According to Fichtmüller the comparison between growth in turnover and number of employees is a good indication that the rationalisation process over the last few years has improved the industry's productivity.

Since 1990 the number of employees working in the European aviation industry (552,037), has been reduced continuously and has settled down at around 370,000. During the last two years the number of employees has more or less remained the same but turnover has grown considerably, (15 per cent in 1996 and 17 per cent in 1997).

When compared with 1990 the profit per employee has risen by almost 50 percent, from 197,000DM to 295,500DM. The association attributes this to an increase in production and at the same time better joint usage of resources. According to AECMA other contributory factors include more intensive use of information technology, outsourcing as well as the increased investment in automation technologies.

In 1997 Europe's aerospace industry exported goods and services for 63 billion DM. The share of exports in total turnover is around 60 percent. The European aerospace industry can boast positive balance sheets. Last year's turnover of 35.5 billion DM again shows a significant improvement over the 24.5 billion achieved in 1996. Fichtmüller pointed out that the aerospace industry is "Europe's only high-tech branch with a positive trade balance".

86 per cent of turnover stems from aircraft related products. Although they are important for the industry, missiles and spaceflight only make up the smaller part of business. About half the gross income comes from sales of end products. Around 30 per cent of the proceeds result from the sale of aviation structures, engines and aircraft equipment. Aircraft maintenance including engine, equipment and airline maintenance account for the remaining 20 per cent. The European Aerospace Industry Association is expecting an average growth of two to three percent over the next 20 years.

From page 38 of FLUG REVUE 9/98