The Biggest Challenges In The Aerospace Industry

Rosh Llyas • March 10, 2025

As the UK aerospace industry continues to advance, it faces several issues that will shape its future. 


So, what are the biggest challenges in the aerospace industry, and how can aerospace teams adapt to stay ahead?


In short, navigating geopolitical tensions, addressing a growing demand for skilled talent, and supply chain vulnerabilities are current issues facing the
aerospace industry


The need for forward-thinking, adaptable talent has become even more crucial. As manufacturers navigate these challenges, a highly skilled workforce will be key to maintaining competitiveness and innovation in the global aerospace market. 


We’ll explore the biggest challenges facing the aerospace industry below, including how aerospace teams can respond to preserve the future of UK aerospace. 




1. Technological disruption.


The UK aerospace industry is heading towards a rapid wave of technological innovation, bringing exciting opportunities and significant challenges. As companies race to stay ahead, they’ll need to tackle several hurdles, particularly with shifting geopolitical tensions.


A key area of growth is 3D printing
(additive manufacturing), where UK firms are heavily investing. However, potential US trade restrictions could limit access to crucial American intellectual property or machinery, slowing down the adoption of this advanced technology. 


Artificial intelligence is another area transforming the industry, offering potential breakthroughs in everything from operations to design. But, with tighter export controls under Trump’s administration, UK companies might face challenges collaborating with US-based tech firms. This could delay the integration of AI into critical processes, limiting the competitive edge that AI offers. 


Alongside these advancements,
research shows that cyber attacks rose by 131% between 2022 and 2023 across the aviation industry. As operations become more digitised, strong cyber security measures will be essential to protect innovations and maintain trust with partners and clients. 


To stay competitive, UK aerospace firms will need to double down on innovation, investing in their own technology and seeking out partnerships beyond usual markets.
Aerospace recruitment will play a crucial role here, ensuring UK firms have the skilled workforce needed to meet these demands.



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 we can 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. 


June 9, 2026
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.
By Jake Appleton May 8, 2026
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. 
By Jake Appleton April 10, 2026
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.
By Jake Appleton March 16, 2026
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. 
By Jake Appleton February 20, 2026
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.
By Jake Appleton February 17, 2026
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.
By Jake Appleton February 17, 2026
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. 
By Aleck Mehra February 17, 2026
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.
By Jake Appleton February 12, 2026
The publication of the UK Advanced Nuclear Framework bears great significance for the UK nuclear market. By introducing the UK Advanced Nuclear Pipeline (UKAN) , structured project readiness assessments and clearer access to revenue support and National Wealth Fund financing, the government has reduced investment uncertainty around SMRs, AMRs and MMRs. 
By Jake Appleton January 15, 2026
What needs to change to address missing engineering headcount?
More Posts