By David Shepardson
FARNBOROUGH, England July 22 (Reuters) - The U.S. boosted the size of its pavilion at the Farnborough Airshow by 22% this year, and U.S. politicians were out in force, vying with European rivals for investment from aerospace, defence, and space companies as the industries boom.
There was a 21% increase in U.S. government agencies and private company exhibitors from the prior event in 2024, with the U.S. now accounting for about a third of the entire show. Nine U.S. senators, several
governors and other local and state officials were in attendance.
"That gives an indication of how important this is to the U.S.," said Gareth Rogers, chief executive of the Farnborough International Airshow.
Governments are increasing defence spending as global tensions rise, while aerospace supply chain spending is also jumping to keep up with the backlog of thousands of plane orders for Boeing, Airbus and Embraer that will take years to deliver. More space and satellite launches are also boosting the space industry.
Some states such as Kansas and Alabama held parties in London to woo potential investors, while dozens operated booths at the airshow to make the case they have the right attributes for prospective companies: low taxes and regulation, competitive energy prices and a talented workforce.
The Aerospace Industries Association, a U.S. trade group, said the U.S. aerospace and defense industry generated $1 trillion in total business activity in 2025 and accounted for 1.6% of U.S. economic output, supporting more than 2.1 million American jobs.
U.S. officials see the higher pay offered in North America as a key draw, with U.S. aerospace salaries about 40% above the national average.
However, the push also comes at a time of a new spike in trade tension, with the Trump administration again threatening to impose tariffs on aerospace, but having delayed them pending planned new talks.
UK, EU STEPPING UP INDUSTRY SUPPORT
The U.S. will also face stiff competition. The European Union is increasing defence spending by 8.6% to a record €454 million ($518.10 million) in 2026 and European countries are also creating new programs to grow aerospace investments and jobs.
The British government on Wednesday unveiled a £600 million ($802.50 million) support package for the UK aerospace industry, including £500 million for aerospace research and technology projects and a new £100 million aerospace supply chain fund, working with industry partners including Airbus, Rolls-Royce, GKN Aerospace and Safran. The UK wants to double the sector's market value by 2035.
Virginia Governor Abigail Spanberger said her state had made efforts to develop a skilled workforce and had invested hundreds of millions of dollars to make sites available for aerospace companies to expand or build.
"We want to make sure as we're looking toward the future we don't get complacent as technologies are changing and evolving," Spanberger said, noting Virginia is home to the Pentagon and significant aerospace and defense companies.
Cleveland Mayor Justin Bibb pointed to northeast Ohio's NASA research center, aerospace industry and manufacturing workforce as potential advantages.
"The cost to do business is a lot more affordable in Cleveland than it is in Silicon Valley or the coast or even the South," Bibb said.
($1 = 0.8763 euros)
($1 = 0.7477 pounds)
(Reporting by David Shepardson)
