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ARTICLE · 16 JANUARY 2017

What Brexit Means For Aerospace And Defence

Gowling WLG
Gowling WLG
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Gowling WLG

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Latest industry figures reveal the significant contribution the aerospace and defence sector is making to UK productivity levels, with aircraft producers on track for a record-breaking year.

GlobalInternational Law

Latest industry figures1 reveal the significant contribution the aerospace and defence sector is making to UK productivity levels, with aircraft producers on track for a record-breaking year. So, how will the road to Brexit impact on the health of this important part of the UK economy?

The immediate reaction has been pretty neutral and this is probably explained by a couple of factors. Firstly, the long-term nature of contracts in this sector means that businesses are focussing on the job in hand. Secondly, businesses don't yet know what the post-Brexit regulatory and trading environment will look like and, without greater clarity, this makes it difficult to plan for.

Our research shows the majority of US-based aerospace and defence companies have adopted a similar position and have not yet made any changes to their investment strategy in the wake of the UK's EU referendum. However, perhaps in anticipation of what "hard" Brexit might look like, a significant

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