UK Aerospace Soars: Deliveries Hit 8-Year High as £269bn Order Backlog Signals Supply Chain Surge

The numbers are in, and they tell a compelling story. According to the latest ADS aerospace report, 1,411 commercial aircraft were delivered globally in 2025. This marks a 25% increase on the previous year and the highest annual total since 2018. For UK aerospace manufacturing businesses embedded in global supply chains, these aircraft deliveries 2025 figures represent both a major opportunity and a serious operational challenge.

But here is the figure that should capture every manufacturing director’s attention: the global aircraft backlog now stands at a record 16,371 aircraft. This backlog is worth an estimated £269 billion to the UK aerospace sector at current production rates. That represents more than 13 years of work. The question facing UK suppliers is simple: are you positioned to capture your share?

The Scale of the Opportunity

The 2025 delivery figures exceeded even optimistic industry forecasts. ADS had projected a ‘high-growth’ scenario of 1,340 deliveries. Manufacturers beat that target by 71 aircraft. Single-aisle programmes drove the surge, accounting for 1,165 deliveries (up 22% on 2024). Wide-body deliveries grew even faster at 43%, reaching 246 aircraft.

Orders tell an equally strong story. A total of 2,175 new aircraft orders were placed in 2025, a 50% year-on-year increase. The wide-body backlog alone grew by 24% compared to 2024. This reflects renewed confidence in long-haul travel and cargo demand.

For context, UK aerospace manufacturing contributed £13.6 billion in value added to the economy in 2024. The sector turned over £34 billion and directly employed around 104,000 people. It supports median wages 40% higher than the national average. With 70% of UK aerospace output exported, the industry remains deeply integrated into transatlantic and European supply chains.

As Aimie Stone, Chief Economist at ADS, noted: “2025 proved to be a positive year for the aerospace sector, despite supply chain challenges and a testing geopolitical climate. The second half of the year delivered stronger than expected results, with deliveries 5% above the ADS high-growth scenario.”

What the OEMs Are Doing

The major aircraft manufacturers are responding to demand with aggressive production targets. Airbus is pushing to increase A320 family production from around 48 aircraft per month to 75 by the end of 2026. At its UK facilities alone, the company employs around 12,000 people. These are based at Broughton in Wales (wing manufacturing and assembly) and Filton near Bristol (design, engineering, and fuel systems). Wing production for the A320, A330, A350, and other Airbus aircraft flows through these UK sites.

Rolls-Royce, meanwhile, is scaling engine production from its Derby facilities. The company invested £50 million to expand engine build capacity. It targets delivery of 40% more new engines from 2025 compared to the previous decade’s average. In June 2025 alone, Rolls-Royce secured deals for 142 Trent engines across Saudi Arabia, Egypt, Taiwan, and Vietnam. This underlines the global appetite for UK aerospace manufacturing capability.

Boeing’s production trajectory has been more turbulent. The company completed its acquisition of Spirit AeroSystems in December 2025. This brought in-house the supplier that makes roughly 70% of 737 MAX parts. Boeing targets 47 monthly 737 MAX deliveries in 2026 as it stabilises its production line. For UK suppliers feeding into Boeing programmes, this change may signal both opportunities and shifts in supplier relationships.

Supply Chain Challenges Remain Real

Despite the positive headlines, the path ahead is not without obstacles. The Roland Berger Aerospace Supply Chain Report 2025, conducted with ADS, BDLI, and GIFAS, provides a sobering view of supply chain readiness.

The good news: nearly 70% of aerospace companies now see themselves as well-prepared for the rate ramp-up. This compares to roughly half that figure in 2024. Resilience measures from recent years appear to be paying off.

The challenges, however, persist:

Personnel shortages remain the primary constraint. Some 65% of respondents cited workforce availability as a challenge. This shows little improvement from the previous year. Despite the sector employing 6,000 apprentices annually and offering wages well above the national average, demand for skilled workers still outstrips supply.

Finance is becoming a growing concern. Some 49% of companies now cite lack of financial resources as a challenge, up from 41% in 2024. This is acute for SMEs, which often lack the balance sheet strength to fund working capital as order volumes increase. Access to finance has been flagged as a structural obstacle to supply chain growth.

Supply chain disruptions continue. Around 64% of companies reported facing supply chain disruptions. This is only marginally improved from 2024. The main causes remain extended lead times and limited availability of raw materials. Companies that avoided disruptions credited better inventory management, improved demand forecasting, and strong supplier ties.

What This Means for UK Manufacturers

For UK aerospace manufacturing suppliers, the current environment demands a proactive stance. The order backlog is not theoretical demand. It represents confirmed commitments from airlines and lessors worldwide. The ramp-up is happening. The question is whether individual companies are positioned to take part.

Balaji Srimoolanathan, Director for Aerospace at ADS, put it directly: “As the skies begin to clear for aerospace manufacturers, 2026 will be an important moment to strengthen the UK’s supply chain and to act decisively to ensure our sector remains competitive.”

Workforce Development Must Accelerate

The skills gap is not a future problem. It is a current constraint on production capacity. Companies should review their apprenticeship and training programmes. They should consider partnerships with local further education colleges and University Technical Colleges.

The Aerospace Technology Institute (ATI) continues to support workforce development alongside technology R&D. The government has committed £975 million to the ATI Programme for 2025-26 through 2029-30. A longer-term commitment of £2.3 billion runs through 2035. Companies should understand the funding landscape and engage with programmes that support capability development.

Financial Planning Requires Attention

With financing emerging as a growing constraint, manufacturers should stress-test their working capital needs against realistic ramp-up scenarios. Extended payment terms from larger customers, coupled with the need to purchase materials in advance, can create cash flow pressure as volumes increase.

Engaging early with lenders, exploring supply chain finance programmes, and understanding government-backed finance options should be part of every company’s planning cycle. The British Business Bank and regional growth hubs can provide guidance on available support.

Supply Chain Visibility Is Non-Negotiable

Companies that weathered supply chain disruptions best in 2025 shared common traits: better stock and inventory management, improved demand forecasting, and stronger supplier relationships. Investment in digital tools for supply chain visibility and demand planning pays dividends when disruption occurs.

The ADS Supply Chain Solutions Framework, including SC21 (Supply Chains for the 21st Century) and AeroExcellence, provides structured approaches to improvement. Over 18 years, SC21 has built a track record of improving supply chain competitiveness. The programme is supported by leading OEMs and primes.

Capacity Investment Decisions Need Data

With 13 years of backlog work available, the question of capacity investment is pressing. However, manufacturers should approach capital spending decisions with clear-eyed analysis. Demand forecasts, customer commitment timelines, and contract terms should inform decisions, not headlines.

Companies considering major capital investment should engage with their OEM customers on rate expectations. They should understand where they sit in the supply chain hierarchy. The ramp-up will not happen uniformly. Some programmes and components will see faster acceleration than others.

Regional Implications

Aerospace manufacturing is geographically concentrated in the UK. Major clusters exist in the North West (around Airbus Broughton and the wider Cheshire/Lancashire region), the South West (BAE Systems, Airbus Filton, and Bristol), the East Midlands (Rolls-Royce in Derby), and Scotland (Leonardo, Spirit AeroSystems, and others).

For suppliers in these regions, proximity to OEMs and Tier 1 companies provides competitive advantage. However, it also means competition for skilled workers is intense. Companies should consider regional collaboration, shared training initiatives, and engagement with local enterprise partnerships. Recent UK manufacturing PMI data shows export orders surging, which benefits these aerospace clusters directly.

Looking Ahead

The aerospace sector’s recovery from the pandemic-era downturn is now firmly underway. The £269 billion backlog is not a prediction. It is a pipeline of confirmed work. For UK aerospace manufacturing businesses, the challenge is execution.

2026 will test the resilience and capability of the UK supply chain. Those who have invested in workforce development, operational excellence, and supply chain visibility will be best positioned to convert opportunity into revenue. Those who have not may find themselves constrained precisely when demand is strongest.

The government has signalled its commitment to aerospace as a frontier industry within the Modern Industrial Strategy. The funding is flowing. The orders are booked. The aircraft deliveries 2025 success story shows what is possible. Now it falls to manufacturers to deliver.

For operations directors and manufacturing leaders, the message is clear: the time to prepare is not when the orders arrive. It is now.