IT services are flying first-class in the big-spending world of the plane makers

Business Focus is a weekly column providing at-a-glance statistics and commentary on spending priorities and trends in particular sectors. This week we look at aerospace manufacturing.

Business Focus is a weekly column providing at-a-glance statistics and commentary on spending priorities and trends in particular sectors. This week we look at aerospace manufacturing.

Aerospace manufacturing is a technology-driven industry, and it is no surprise that spending on IT among the sector's large companies is well above the average spend across all UK businesses.

The UK's leading aerospace manufacturers spend on average £11,430 per desktop each year, nearly £3,000 more than the average for large organisations across all sectors of £8,455.

Among smaller businesses, the differential is not quite so marked, with small and medium-sized aerospace manufacturers spending £3,985 - about a quarter more than the SME average of £3,132.

The recent production problems Airbus has encountered with its A380 superjumbo emphasise how important it is that aerospace manufacturers get their IT and business processes right.

When Airbus said last month that production of the plane would take longer expected and cost it £350m in lost earnings, the news led to the resignation of several executives and rows among the partners that make up the Airbus consortium.

The breakdown of IT spending by larger aerospace manufacturing firms shows that such businesses spend more than twice much on IT services than the UK-wide average. Indeed, more than half of their IT spending goes here - £6,176 out of £11,430 - illustrating the big firms' tendency to outsource IT.

Methodology

The analysis is based on Computer Weekly's database of more than 60,000 IT budget holders, twice yearly user IT expenditure surveys, CBI/Kew senior executive surveys, government surveys, government demographic data, HM Treasury economic forecasts and Cambridge Econometrics industry sector forecasts.

Further details www.kewassociates.co.uk

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