Arlington, Va. – A new study released today by the Aerospace Industries Association (AIA) and McKinsey reveals that, despite focused efforts to strengthen talent attraction and retention, the aerospace and defense (A&D) industry continues to face mounting workforce challenges, demanding new and creative solutions to address productivity gaps.
Titled Accelerating Progress—Maximizing the Return on Talent in A&D, the report offers a comprehensive, data-driven analysis of the sector’s workforce dynamics. It highlights the urgent need for fresh approaches and sustained investment to strengthen the talent pipeline and ensure the long-term vitality and competitiveness of the U.S. A&D industry.
“The aerospace and defense industry continues to lead in innovation thanks to the power and ingenuity of our workforce – but the talent challenges we face continue to grow more complex,” said AIA President and CEO Eric Fanning. “To remain a global leader, we must take bold, strategic action to attract, retain, and empower the next generation of talent. That means investing not only in people, but also in the technologies and partnerships that will secure our industry’s resilience and competitiveness for decades to come.”
Drawing on insights from more than 30 A&D organizations representing over 600,000 U.S. employees—as well as perspectives from industry leaders, talent executives, national workforce data, and McKinsey analysis—the study paints a picture of an industry at a critical inflection point. In 2024, the U.S. A&D sector generated $995 billion in revenue, a 5.7% year-over-year increase, even as companies grappled with persistent talent shortages, high attrition, and ongoing supply chain and production constraints.
Key highlights from the report:
- Persistent workforce challenges continue to create headwinds for an industry striving to drive digital adoption, increase productivity, and meet growing customer demand in a volatile climate.
- Critical talent shortages in engineering and skilled trades continue to be a major constraint, limiting industry expansion and innovation.
- Attrition remains high, holding steady at nearly 15% in 2024—more than double the average across other U.S. industries—despite sustained efforts to improve retention.
- Workforce growth reached 2.23 million employees, reflecting a 2.9% increase from 2023 to 2024.
- AI, automation, and digital fluency are now key priorities for companies addressing talent shortages and enhancing workforce capabilities.
Click here to access the full report.
Recently, AIA and Accenture LLP released “Artificial Intelligence in Aerospace and Defense,” a report analyzing how AI and automation can help the A&D industry tackle key challenges, including workforce gaps. Read the full report here.
As the leading voice advocating for the 21st century workforce needs for the A&D industry, AIA regularly releases A&D industry workforce data. The results of our 2024 Aerospace & Defense Workforce Study can be found here.
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