Aerospace and defence face competition for skills

A report shows persistent core talent shortages and high attrition rates in the US industry.

The 2025 edition of the Aerospace Industries Association’s (AIA) annual aerospace and defence (A&D) workforce study was written with McKinsey and included a survey of AIA member companies and their executive leaders.

The survey reveals that persistent core talent shortages and high attrition rates threaten to limit future progress of the A&D industry, which continues to grow at 4% year-over-year.

Industry-wide attrition rates sit at almost 15%, and skills gaps are in roles that are essential to production, with 76% reporting shortages in engineering, while 56% report challenges in sourcing skilled trades people.

Output from the report says that firms must achieve a step-change improvement in workforce productivity. The study suggests:

• Reimagine workflows via enhanced technology: build a foundation of tech-enabled, fast and frictionless workflows and empower employees to drive transformation
• Equip the workforce with new skills: create a talent development engine to nurture leadership and functional skills continuously, while ensuring that the approach taken for upskilling is tied to overall business strategies
• Use employee incentives to drive engagement and reduce attrition: prioritise compensation alongside a holistic set of incentives, such as development and flexibility, to drive workforce engagement and retention, especially among high-potential talent

Download the full report, Accelerating progress: Maximizing the return on talent in A&D.