A new aerospace and defense (A&D) study from the Aerospace Industries Association (AIA) and McKinsey reveals that workforce attraction and retention challenges are hampering the industry's efforts to advance digital adoption, boost productivity, and meet rising customer demand amid market volatility.

The study reflects insights of more than 30 A&D organizations representing over 600,000 U.S. employees, with other key findings that reveal:

• Critical talent shortages in engineering and skilled trades are a challenge, limiting industry expansion and innovation.
• AI, automation, and digital fluency are key priorities for companies addressing talent shortages and enhancing workforce capabilities.
• Attrition remains high 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.

“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.”

Access the announcement and the report, “Accelerating Progress—Maximizing the Return on Talent in A&D,” via AIA’s press announcement.