Results for this year "will not be as bad as anticipated", according to Jean-Paul B‚chat, president of European aerospace industries association AECMA. But B‚chat joins national aerospace associations in calling for more spending on research and development (R&D), and better management of defence procurement to ensure the European industry can continue to compete with that of the USA.
The first five months of 2002 show a drop in sales of about 10% against 2001. But Bechat says 2001 was a "good year" for the industry in Europe, with employment reaching an eight-year high at 436,000 and a "best ever" turnover of €80.6 billion ($78.5 billion). The military sector continued its 22-year decline from a high of 67.5% of total turnover in 1980, to 30% in 2001. Order intake amounted to €158.1 billion, down from €164.5 billion a year earlier.
AECMA is warning of a downward spiral in R&D spending. B‚chat says: "The R&D investments we make today are vital for our competitiveness in 15 to 20 years."
Philippe Camus, president of French defence industry association CIDEF, has urged the French government to reverse the six-year fall in R&D spending by raising its budget to at least €1 billion a year. Italian aerospace industry association AIAD has also requested an additional €1.2-1.5 billion per year in Italian state R&D spending.
On defence, Camus has called for the French government to raise procurement spending to €15 billion a year. The 2002 defence budget amounts to just €12.4 billion, and parliamentary resistance may reduce this to only €10.8 billion. CIDEF also stresses that "chronic under-funding" led to severe delays, which harm military readiness and contractors alike.
Source: Flight International