The service aerospace industry in Andalusia turned over 646.4€ millions in 2011, 16.5% more than the previous year, and generated 629 new jobs, 8.4% more, according to the ‘Andalusian Aerospace Sector Report 2011’, made by the Hélice Cluster. Hélice’s president, Juan Pedro vela, has presented in Seville the results of the report, which consolidates Andalusia as the second national pole in Aeronautics with a turnover of 23.6% and 28.9% of employment, just behind Madrid and followed at some distance by the Basque Country.
The study points out that aerospace added turnover (OEMs, subcontractors plus service enterprises) falls by 11,5% until €1.754 millions, since Airbus Military sales have dropped due to non-recurring costs for A400M in 2011 compared to 2010, a point that will vanish once A400M serial production gets consolidated. This is not a backward step in the activity, as employment grew by 5.1% (524 more), reaching up to 10.802 jobs.
This maintenance of the activity can be seen on the service industry figures as well, which increases its turnover by 16.5% (two more points than the previous year) and 8.4% of employment, up to 8.090 jobs. These figures show that the Andalusian aeronautical industry is solid and resists the credit crunch and that has a strong and consolidated service industry, as it is demonstrated in the job creation and sales during the last year and the last decade.
Andalusia keeps a critic business mass formed by 120 companies, 90% of which are sited at Seville-Cádiz axis that keeps with the same trend of the last few years about developing business concentrations and alliances in order to enhance the capability of the sector to embrace new work packages.
The Andalusian aerospace cluster has consolidated again its position within the Andalusian economy and nowadays contributes 1.21% to the Andalusian GDP, 16% to the manufacturing industrial GDP, and employs 5% of the 220.000 employees of the industrial sector in the region.
Greater qualification and diversification
During the last decade (2002-2011), the Andalusian aerospace industry has created 6.938 jobs, which means that has almost tripled the employment (+179%), and has multiplied by more than three the turnover (+245%), from 509 to €1.754 millions.
In absolute terms, and regarding to the aerospace industry, Andalusia was the first Spanish region in job creation last year (+524) and, in relative terms, its increment (+5,1%) places itself far above the national average (+0,2%), while in other regions, aeronautic employment is destroyed. Thus, Andalusia contributes decisively to keep the national aerospace employment.
In the course of last year, the number of highly skilled employees kept growing (executives, engineers, and graded), with an increment of 4.85%, which rises until 8.2% in the service industry.
Concerning sales, 39% of added turnover comes from civil programs and 61% to military programs. Greater turnover activities are still big entity assemblies (799 millions), final assembly (355,1 millions) and the complementary industry (334.8 millions), though engineering and consultancy firms are substantially on the rise (32.6%).
Likewise, turnover from non-Airbus products and services gets consolidated reaching by 30% in 2011. This indicator improves the diversification of the sector, reducing risks and contributing with more stability to the industry.
Services versus subcontractors
The auxiliary industry keeps in 2011 its strength despite the economic situation, with a growth of 8.4% in employment and 16.5% in sales, 2.5 more points than last year. The growth of the business volume is especially significant in the areas of plastics and composites (+37.4%) as well as in engineering and consultancy (+32.6%).
The service companies’ productivity also grows by 8.1% encouraged by the sales increment. Besides, the effort of these enterprises towards internationalization, training, and maintenance of the R+D investment stands out.
The service subsector had international sales valued at €180 millions last year, 18% of the aerospace Andalusian exports (998 millions). As a whole, the Andalusian aerospace industry has multiplied by five its sales to others countries in the last decade (from 187 to 998€ millions) and now is the second Spanish region with more sales abroad.
Despite the credit crunch, the service companies keep their investing effort in R+D, increased by 8.2% up to 8.7% in average sales. The activity developed by the Centre for Advanced Aerospace Technologies (CATEC), fostering R+D within the service subsector, and the development of A350 program have played a vital role in this increment.
Besides this, the service subsector carries out an important effort training human resources, doubling hours of formation per employee, from 23 to 43 in just one year. This effort generates knowledge into the company and contributes to improve competitiveness within the industry.
By its side, OEMs undergo a slight drop in employment (-3.7%) due to the workload externalization and an important fall of the turnover (-22.4%), mainly, as said before, because of Airbus Military has dropped its sales due to non-recurring costs for A400M in 2011, although Airbus España sales raises 8.6%. Due to the fall of the sales, productivity goes down 19.4% in 2011.