5 Challenges Facing UK Aerospace and Defence Organisations in 2026

There’s a conversation happening in UK aviation that isn’t said out loud in hangars or management meetings. Aleck Mehra , our Head of MRO Services, speaks with aerospace engineers across the country every day and has gathered insight into where engineers feel the industry has been heading in recent months. The conversation is not about lack of work, and it's not about the lack of demand for engineers (since there is critical demand for B1/B2 Engineers in the UK market currently). It’s about money not flowing through the system in a way that reflects the reality on the floor. Across the UK, aerospace engineers are starting to notice the same pattern: rates feel stuck, perm salaries have flattened in a lot of places, and the gap between responsibility and reward has stopped making sense in the way it used to. At the same time, the complexity of the work has not gone down. If anything, it has increased: new aircraft types, ageing fleets, tighter turnaround expectations, heavier compliance requirements, and more documentation are layered on top of the actual engineering. In the UK specifically, that pressure is being amplified by a tougher operating environment across aviation. Brexit regulatory change, combined with broader economic pressure on airlines and MROs, has created a market where margins are tighter and cost control is far more aggressive. This is very visible in the stability of some operators, with recent insolvencies such as European Cargo and Ascend Airways reflecting how fragile parts of the sector have become. This is felt directly by engineers on the shop floor. MROs are being asked to deliver more output with constrained budgets, while also navigating ongoing staffing shortages and more complex licensing and compliance requirements introduced through the post EU framework. The result is a squeeze that sits between financial pressure at organisational level and delivery expectations at engineering level, and it is changing how the work is experienced day to day. You end up with a market where: • The work is harder than it was 5 years ago • The responsibility is higher than it was 5 years ago • But the financial movement does not match either It’s now far more common for experienced engineers to contract abroad where both accommodation and flights are more likely to be paid for. This migration of talent from the UK further constricts the UK B1 market, making it harder for MROs to stay fully-staffed and operational. 

Hiring Aerospace, Defence and Space talent hasn't got easier. It's become more selective. Organisations are competing for increasingly scarce skills across engineering, project controls, programme management, cyber security, software development and highly cleared environments. At the same time, experienced professionals have become far more discerning about the opportunities they pursue. Employer Value Propositions (EVPs) are becoming a critical part of talent acquisition strategy. Not because they're simply an employer branding exercise, but because they directly influence whether ADS professionals choose your organisation over another opportunity, and whether they remain engaged once they join. WHAT ARE AEROSPACE, DEFENCE AND SPACE PROFESSIONALS LOOKING FOR TODAY? Candidates are less likely to move unless the opportunity offers meaningful value beyond compensation. Whilst salary remains important, engineers, programme leaders and technical specialists are increasingly evaluating the wider environment they'll be joining. Candidates are consistently prioritising: Competitive compensation and benefits Long-term programme stability and security Meaningful work with real-world impact Clear progression and professional development opportunities Strong technical leadership and engineering culture Access to complex and challenging projects Confidence in programme funding and organisational stability The opportunity to contribute to critical national capability and innovation If these factors aren't communicated clearly, candidates often disengage before the process reaches offer stage. Purpose and impact are becoming increasingly important, particularly amongst highly skilled professionals who want to understand how their work contributes to something bigger. In Aerospace, Defence and Space environments, candidates are not only choosing a role. They're carefully selecting a programme, a mission and a long-term commitment. Job security has also become increasingly important. As organisations continue to navigate budget pressures, contract cycles and changing programme priorities, candidates are taking a more cautious approach to career moves. They are not asking: "Is this a better role?" They're actively questioning and deliberating on: "Is this a programme worth committing my expertise to?" FLEXIBILITY STILL MATTERS, BUT STABILITY AND PURPOSE MATTER MORE Flexible working continues to play an important role in attracting talent. However, in Aerospace, Defence and Space sectors, the conversation is often more nuanced. Security requirements, programme sensitivity and on-site delivery requirements mean flexibility can look very different to other industries. Whilst hybrid working remains an important consideration for many professionals, candidates are increasingly focused on wider questions around programme stability, organisational purpose and long-term career opportunities. They are assessing: The longevity of programmes and contracts The quality of leadership Opportunities for professional growth The complexity and significance of the work Whether the organisation is investing in future capability Flexibility remains important, but for many ADS professionals it forms part of a much broader decision-making process. WHY AN EVP MATTERS MORE THAN EVER Too often an EVP is reduced to: A careers page A list of benefits Generic statements about culture and values In reality, your EVP is the reason an engineer, programme professional or ADS specialist chooses your organisation over another. It should be visible throughout the hiring process, onboarding experience and day-to-day culture. Organisations with a clear and well-communicated EVP typically: Attract stronger specialist talent pipelines Convert more offers Reduce reliance on inflated salaries Improve retention within critical programmes Accelerate productivity for new hires Strengthen employee engagement and capability The strongest organisations are creating environments where people can make a genuine impact, develop their careers and contribute to meaningful programmes, then communicating that consistently throughout the hiring process. Where EVP is weak: Time-to-hire increases Candidate drop-off rises Recruitment costs increase Critical skills gaps emerge Programme delivery risks grow Attrition impacts organisational capability For organisations operating in highly regulated and technically complex ADS environments, talent challenges rarely remain recruitment challenges for long. They quickly become business risks.

Over 2000 roles are left open annually by UK aviation maintenance, leading to high reliance on an ageing workforce, overseas talent and short-term contract fixes. But businesses want to hire, and they have never been more open to addressing their talent pipeline. If you're a young engineer aspiring towards a well-paid and interesting career, you should consider training to become B1 Licensed. We've put together this step-by-step guide on how you can gain to access the industry and, eventually, your licence. 

After a successful visit to the Aerospace Wales Expo in Llandudno at the tail end of Q1, we sat down with aerospace, defence and space SMEs and employment lawyers to discuss the upcoming Employee Rights Act and how it impacts hiring strategy, culture and retention in the context of the new financial year. The Employee Rights Act 2025 is the biggest shake up in employment law that many of us will have seen in our lifetimes. It's a silent change in risk, workforce control and support and, potentially, programme delivery stability.

The UK labour market is tightening for junior engineers. Youth unemployment has risen to ~16% amongst 16-24 year olds, with nearly one million young people being NEET (not in employment, education or training). Engineering apprenticeships have fallen by approximately 40% since 2017, yet the UK manufacturing sector still needs an estimated 168,000 new workers per year. This creates a paradox: a skills shortage alongside a hiring bottleneck for junior candidates. 

The UK space sector is growing at pace, but access to skilled talent is getting harder. According to the UK Space Agency, the UK space sector generates over £17 billion in annual income and employs more than 45,000 people. Growth ambitions continue to remain high, particularly in satellite technology, launch capability and space-enabled services. However, employers consistently report skills shortages across systems engineering, satellite communications, propulsion and ground segment operations.

Meritus Talent, as part of the Recolution Recruitment Group, has been awarded Level 2 Disability Confident Employer status through the Disability Confident initiative. This accreditation sits firmly under the first pillar of our CSR strategy: People & Inclusion – Creating Opportunity for All . Operating within aerospace, defence and advanced engineering, we understand the value of highly skilled individuals who think differently, solve complex problems, and drive innovation. Inclusive recruitment is not simply a moral imperative, it is a strategic one. By removing barriers and ensuring fair access to opportunity, we strengthen both businesses and careers. The accreditation also marks the launch of our Open Doors Pledge , a clear commitment to championing inclusive hiring practices across our own operations and within the organisations we support. We are not simply opening doors. We are holding them open. We will continue to evolve our processes, challenge outdated thinking, and support our clients in building accessible, future ready workforces.

The UK defence sector is growing. With increased geopolitical instability and sustained government investment, demand for skilled engineers, systems specialists and programme leaders continues to rise. At the same time, access to experienced, security-cleared talent remains constrained. For UK defence employers, ex-military professionals represent one of the most underutilised yet strategically aligned talent pools available. 

Hiring aerospace engineers in the UK is increasingly complex. Demand for systems engineers, propulsion specialists, manufacturing engineers and avionics experts continues to outpace supply. According to ADS Group , the UK aerospace sector supports more than 100,000 direct jobs and remains one of the country's most R&D-intensive industries, but this sustained investment in innovation has increased competition for highly-specialised engineers. For those hiring for aerospace vacancies, reactive recruitment is no longer sufficient.