Headline findings include the UK Space Industry growing in real terms by 3.3% per year, as part of the UK economy. And space industry employment grew 7%, with an estimated 55,550 full time jobs. Note, too, a further 81,400 positions were indirectly supported jobs across the supply chain, according to the study.
An estimated £1bn was spent by UK space organisations on R&D. This is equivalent to 5.7% of total industry income (up from 5.1% previously).
It’s not all positive, however. Actual UK space industry income was recorded as £18.6bn, which is 8.9% lower year on year. And estimated productivity fell from £148,000 to £129,000 GVA (gross value added) per employee. Note, though, that this remains more than twice the national average of £61,729.
An ongoing shortage of skilled candidates, was also mentioned, which is restricting company growth.
Looking ahead
Looking ahead, survey respondents indicated optimism with respect to near-term growth. It reports 3 in 5 expect income to be higher in the coming three years (61%, with 42% expecting income to be much higher).
Also, 52% expected to spend more, 50% expected increased employment, 49% expected increased exports, and 46% expected increased Research & Development (R&D) expenditure.
New space companies
An identification of 151 new companies in the sector, was highlighted by the report. As was relatively stable employment.
“The strong growth in employment is part due to the identification of over 151 new companies that engage in the UK space industry, representing 1,386 space-related employees. Numerous survey respondents who reported declines in revenue, reported stable employment figures, implying that firms involved in the space sector are not laying off workers despite falling real revenues.”
“This may be due to a general optimism for the future reported by survey respondents, implying that companies expect to see a recovery in revenues over the next few years, and leading them to preserve their skills and capabilities.”
London Economics
Note that the report officially covers the 2024 time period and also includes data from the 2022/23 financial year.
It was produced for the UKSA by London Economics, an economics and policy consultancy headquartered in London. Its authors are: Philip Hagelberg, Rasmus Flytkjær, Jannik Neu, Dr Ethan Sorrell, Clio Von Petersdorff and Dr Su-Min Lee.
Out of 2,284 organisations with activities that appeared potentially space-relevant, 218 responded to an online survey. This includes 177 full responses, say the authors, and 41 partial responses with key information.
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