While the vast majority of manufacturers have survived the coronavirus crisis so far, it’s likely we’ll see increased level of stress during the final months of the year – and accelerated mergers and acquisitions (M&A) activity lasting into the first half of 2020.

Aerospace manufacturing declined by 26% in the second quarter of 2020, the largest slump on record.

Coronavirus is likely to have a larger and more long-lasting impact on the global aerospace industry than previously thought.

Santander is pleased to see that most manufacturers in the aerospace, advanced manufacturing and rail sub-sectors are managing to maintain some level of production. The results of a recent survey carried out by our regional aerospace partner, Midlands Aerospace Alliance (MAA), give some insight into how firms are responding so far to the crisis. It found:

Many of the UK’s advanced manufacturers are now focused on how to confront the Covid-19 pandemic head on. For example, one consortium has been working with medical appliance manufacturers exploring how to increase production of ventilators, and to develop new models, with units due to start to be delivered to the NHS early this month. Several of our clients are involved in this initiative and we were able to introduce one of our customers to the consortium with the offer of an air cargo service to help get ventilators distributed as quickly as possible.

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