How to navigate the aerospace and defense talent crisis

The aerospace and defense (A&D) industry stands at a pivotal moment. Global revenue reached a record $922 billion in 2024 — but it’s not the cure-all some might hope. Operational and growth constraints are limiting further success, with 67% of aerospace leaders citing talent attraction as their most urgent issue.

Creating a thriving future depends on each organization’s ability to drive innovation and resilience with the talent needed to meet its goals. And to get there, you first need to understand the challenges you’re facing, the driving forces behind them, and what’s needed to come out on top. Here’s the insight you need to secure a strong growth plan.

A&D industry challenges

• A&D talent gaps and workforce demographics: The aerospace workforce is facing a retirement cliff, with 25% of employees over 55 and an estimated shortage of over 1 million engineers by 2030. Across the A&D industry, attrition rates of 13% far surpass the national average, and up to half of hourly hires leave their jobs in their first four months.
• Supply chain disruption: Backlogs remain at historic highs with 17,000 orders, and labor gaps and supplier shortages have left original equipment manufacturers unable to meet the surging demand for fleet modernization and next-gen programs.
• Technological disruption and cyber risk: AI, 3D printing, green aviation, and digital transformation are reshaping job roles, yet training hasn’t kept pace with innovation cycles. Notably, cyber-attacks rose by 131% in aviation between 2022 and 2023, further compounding the risks to operational resilience.
• Geopolitical and regulatory headwinds: Geopolitical tensions, Brexit, trade tariffs, and stricter export controls have created market uncertainty. These factors have also restricted talent mobility and reduced access to vital technology partnerships.

A&D talent shortage underlying factors

• Aging and attrition: The rapid aging of technical trades, loss of senior expertise, and higher-than-average attrition among mid-career professionals are causing acute knowledge gaps in critical roles.
• Inadequate workforce planning: Many aerospace and defense companies maintain a reactive, “headcount-first” approach, rather than engaging in proactive, strategic workforce planning. The result? Inefficiencies, project delays, and lost competitive ground.
• Insufficient talent pipelines: Reliance on referral-based recruitment and a preference for “ready-to-go” candidates restricts entry points for new aerospace and defense talent, undermining both succession and workforce diversity.
• Academic and skills mismatch: New graduates often lack readiness for roles in AI, software or digital, reflecting a gap between education and A&D industry evolution.
• Cultural and engagement deficits: Rigid structures and a lack of empowerment lead to disengagement. And the effects are notable: 60% of mid-career professionals report a lack of tools or influence to drive change.
• Underinvestment in retention and mobility: Insufficient onboarding, career development, and upskilling contribute to high early-stage turnover and increased recruitment costs.

Aerospace and defense talent strategies

Building your future-ready solution

These challenges are difficult, but you can overcome them. Transforming your workforce approach transforms your organization’s future — all you need is the right strategy. Here’s how to create a plan that’ll take your business into tomorrow and beyond.

1. Employ workforce planning & skills-based hiring

A skills-first focus is becoming critical throughout all industries. By investing in skills-based recruitment and deploying data-driven workforce planning, you’ll unlock broader candidate pools and promising pipelines — all while directly addressing demographic and educational constraints.

2. Find the right leadership talent

Leading through transformative change involves navigating complexity, organizational design, succession, and upskilling programs.

Having experienced talent in place to effectively drive these changes and proactively address the senior talent cliff will make all the difference.

3. Strengthen your employer value proposition

Compelling employee value propositions (EVPs) are built around what matters most: innovative projects, growth paths, purpose-driven culture, and stability.

Whether you craft this yourself or work with an experienced partner, a strong EVP and employer brand make a lasting impact on talent attraction and retention.

4. Build an engaging culture

When your culture is formed around inclusion, engagement and career progression, employees want to stay. Creating a framework that supports these initiatives not only strengthens your brand and team but also reduces mid-career attrition and empowers agility — especially in fast-changing environments.

Workforce transformation: Your competitive edge

For aerospace and defense leaders, the next competitive edge won’t come just from new technology — it’ll come from strategic, holistic workforce transformation. By crafting an approach that addresses the current challenges and anticipates future needs, you’ll propel your A&D organization to even higher levels of success.

If you need a guide on your journey, Cielo’s here to help. Book a strategy consultation to learn how our A&D industry expertise can help solve today’s talent crisis and secure tomorrow’s innovation.