The Andalusian aerospace industry keeps growing and turns over 6% more and creates nearly 500 new jobs in 2012

Jun 12, 2013

The Andalusian aerospace industry turned over 1,858 million euros and created near 500 near jobs in 2012, according to the “Andalusian Aerospace Industry Annual Report’, elaborated by the Hélice Cluster and that has been presented in Seville by the regional minister of Economy, Innovation, Science and Employment, Antonio Ávila. This report consolidates Aeronautics as a strong industry and as a strategic activity to create wealth and employment and strengthens the productive network within the community. 

This sector keeps growing figures despite the world’s economic situation. This data strengthen Andalusia as the second Spanish region within the sector and as one of the three prime aerospace hubs in Europe together with Toulouse and Hamburg. According to the data, Andalusian aerospace sector already contributes 1.28% to the Andalusian global GDP and 17% to the Andalusian industrial manufacturing GDP.

In particular, the Andalusian aerospace cluster increased sales by 6% and employment by 4.5% exceeding one thousand of new jobs in the last two years. The study shows the solid trajectory of the Andalusian aerospace sector in the last decade, a period when multiplied by three the volume of sales (from nearly 600 million in 2003 to over 1,800 in 2012) and the number of jobs (4,100 in 2003 to nearly 11,300 in 2012) and by six the foreign sales, as well as registering an increment in productivity of 3% annually.

The industry forecasts this positive evolution to be intensified short term when increasing production cadence of the different Airbus types, substantially the serial production of the A380 and the A400M and the production of the A350, programmes in which Andalusian companies have an important participation.

The report shows that the Andalusian aerospace hub has managed to excel at quality level and productive capability of the enterprises which keep a critic mass composed by more than 100 firms facing new concentration processes which enable more solvency and capability to take part in international programmes.  The Andalusian service industry excels at reaching an increment of 14% of sales in 2012 with a turnover of 736,8 million euros and 3.8% of jobs up to reach 8,396 jobs.

The report shows that Andalucía has a business critic mass composed by 120 enterprises (as it happened in 2011), 89% located on the axis formed by Seville and Cadiz, but that shows a dynamic activity and keeps on the rise as it did in the last few years resulted from the merger and business allays to strengthen its capability to undertake new work packages.

Sector on the rise

The ‘Andalusian Aerospace Industry Annual Report’ shows that the Andalusian aerospace industry turned over 1,858.5 million euros and employed 11,290 people in 2012. This industry experienced an increment of 6% in sales last year (104.5 million euros) and 4.5% of employment (488 jobs). In the last decade (2003/12) turnover grew over 1.263 million and 7,111 jobs were created (annual average +11,7%).

As per foreign sales, 59% respond to military programmes and the rest to civil programmes. According to the activity, most of the companies are devoted to machining and assembly which represents 41% of the companies and 66% of global turnover, followed by engineering, consulting and services. Engineering excels at gaining importance since the number of firms as well as sales increased in 2012 (39,5% more of turnover than the year before).

In the course of last year, highly skilled jobs kept growing (managers, engineers and graduates), with an increment of 4% compared to 2011. Together with skilled workers this area represents 88% of the global Andalusian sector. At the same time, the Andalusian cluster grew by 2% in productivity (in terms of turnover by employee), upward trend which continued in the last decade at an average of 5,000 euros per employee per year.

The industry in Andalusian also kept its commitment to diversification of customer and product to reduce risks and gain stability, resulted from sales of non Airbus products and which represent 28% (525 million euros). In this chapter, the increment of Airbus Spain products in 2012 by 16.8% compared to the year before should be highlighted. On the other side, turnover of other products and services continued at the same level. This data is resulted from the increment of workload and the intensity in the production chain of civil Airbus programmes such as the A350, with a growing outlook for the next few years. 

Exports within the Andalusian aerospace cluster grew over 1,150 million euros in 2012, over passing the barrier of 1,000 million for the first time, which represents 62% of total turnover and 8.1% of total exports within the region according to the data of the Andalusian Trade Agency Extenda, with which the Hélice Cluster collaborates to promote internationalisation within the sector by trade missions and the organization of business meetings such as ADM 2012 or the A400M Global Suppliers Meeting.

OEMs, tier one suppliers and service companies

As it has been happening in the last few years, data from the service industry are again very favourable in 2012, consolidating its strength despite the credit crunch. Turnover was higher for service enterprises with an increment of 14%, up to 736.8 million euros, facing 1,3% of increment for the contractor enterprises which had a turnover of 1,121.7 million euros. As per employment the increment was homogenous with 3,8% for the service enterprises reaching 8,396 jobs, while OEMs and top level suppliers grew by 6,7% and employed 2,894 people.

This involves that service enterprises contributed 90% to increase turnover and 63% to employment in the Andalusian aerospace industry last year with an annual average of 15% of sales increment in the last three years. In the last decade, service industry turnover grew over 850% (from 85 million in 2003 to 737 in 2012) and employment by 500% (from 1,663 in 2003 to 8,396 in 2012).

As per last year data, the report shows the increment of employees in the areas of quality and R&D in 2012, incremented by of 47% and 33% respectively. These two areas together with the area of engineering have passed from representing 29% of the global service industry in 2011 to 31% in 2012. By its side, production staff representing 46% keeps a sustained growth of 8,7%.

Productivity also grew within the Andalusian service companies with an increment of 10%, although engineering and consulting firms experienced the highest growth with 24,6% compared to 2011.

In addition, the effort of the service companies to R&D investment should be highlighted which has been duplicated in the last year (a global of 56.9 million euros) and reached 7.7% of sales. The Centre for Advanced Aerospace Technologies played a leading role in this evolution since it fosters R&D within the service companies, as well as the Interconecta calls boosted by the regional government, Junta de Andalucía, and the developments related to the new Airbus programme A350.