From:
Valuation Office
Agency
Published
5 May 2017
Updated:
22 February 2023, see all updates
Source:
https://www.gov.uk/guidance/rating-manual-section-6-part-3-valuation-of-all-property-classes/section-50-aircraft-works-with-airfields
Aircraft works with airfields
This publication is intended for Valuation Officers. It may
contain links to internal resources that are not available
through this version.
1. Market appraisal
Britain is currently the world’s second-largest aerospace
manufacturer, with 17% of the global market, behind only America.
It is made up of almost 3,000 companies and directly employs over
100,000 people. In 2014 the sector had a turnover of £27.8bn, of
which about 90pc was from exports. The industry embraces Civil
and Military manufacturing operations.
Civil aircraft
Although the UK does not build complete passenger aircraft it
manufactures almost all of the key components: from fuel systems
and landing gear, through to wings, fuselages and jet engines.
British companies produce components equivalent to 10% of every
single-aisle commercial jet and 20% of wide-bodied ones. The
leading players with large manufacturing sites in the UK include
Airbus who predominantly manufacture wings and landing gear, and
Rolls-Royce who make engines. Rising global demand for commercial
jets has meant the civil aerospace industry has boomed for years
and it has also successfully developed carbon fibre and composite
material technology keeping the UK at the forefront of the
sector. Looking forward the industry should continue to prosper
though the big commercial airline projects, such as the Airbus
A330 and the original Boeing 777, are coming to an end, they will
be replaced by a new generation of narrow- and wide-bodied jets.
This will present an opportunity for the big global manufacturers
to look beyond the UK for suppliers. Industry commentators expect
the governments of emerging economies like China and India to
compete in this high-tech, high-value industry.
Independent aviation analyst Howard Wheeldon said on 28th April
2015 : “The outlook for the industry now is as good as I have
ever seen in all the years I have covered it.”
However, he warned the current strong position the industry is in
could easily fade away.
“It is there for us, there for us to lose. We have to keep
putting money into the industry to guarantee its future. The
investment pedal has to be kept pressed down – if it is I can see
the industry continuing to enjoy this sort of success for the
next 20, 30 or 40 years.”
Military aircraft
The UK still has a significant defence aerospace industry
providing the bulk of UK military export sales. This is primarily
through BAE Systems which makes large sections of the Typhoon
Eurofighter at its sub-assembly plant in Salmesbury and assembles
this aircraft and the Hawk training jet at its Warton Plant, near
Preston. It is a principal subcontractor on the F35 Joint Strike
Fighter - the world’s largest single defence project - for which
it designs and manufactures a range of components including the
fuselage, vertical and horizontal tail, wing tips and fuel
system. Airbus and Rolls Royce both manufacture military
components. Airbus manufactures the wings for the A400m military
transporter, whilst Rolls Royce engines power around a quarter of
the word’s military fleet. AgustaWestland continues to design and
manufacture helicopters in Yeovil
GKN Aerospace is an expert in metallic and composite aero
structures and serves both civil and military fixed and rotary
wing aircraft manufacturers.
2. Changes from the last practice note
There was no Practice Note for the 2010 Rating Lists.
3. Ratepayer discussions
There have been no discussions with the Aerospace Industry.
4. Valuation scheme
There is no scheme of valuation for Aircraft Works. They are
valued using the indirect rentals basis. This replicates the
approach to the Motor Vehicle Works class. As there is no
reliable open market rental evidence of a large motor
manufacturing and aviation works sites, the tone is set by
comparison with large industrials in the locality.
