How to navigate the aerospace and defense talent shortage

The aerospace and defense (A&D) industry is at a turning point, and talent is the deciding factor. Yes, global revenue hit a record $922 billion in 2024 — but growth alone won't solve what's holding the industry back. Even with strong demand, operational bottlenecks and workforce shortages are putting the brakes on progress. Case in point: 67% of aerospace leaders now cite talent attraction as their most urgent challenge.

The future of A&D belongs to organizations that can innovate, adapt and stay resilient — and none of that happens without the right people. Drawn from Cielo’s experience working with A&D industry clients, Andy Curlewis outlines what’s really behind the talent shortage and how to build a workforce strategy that keeps you ahead.

What's holding the A&D industry back?

Talent gaps and workforce demographics

According to the 2025 AIA–McKinsey workforce study, the A&D industry is facing major talent gaps with hiring challenges expected to persist through at least 2033 due to retirements and limited workforce growth:

• Industry attrition remains near 15% — more than double the U.S. average

• 76% of A&D companies report sustained challenges hiring engineers

• 56% report shortages in skilled trades critical to production

Supply chain disruption

The aerospace industry faces historic highs in global backlogs — more than 14 years worth of production just to catch up on current orders. With roughly 17,000 jets still on backlog, every tier in the chain is strained. Labor shortages amplify the issue with 65% of organizations indicating workforce gaps as their top supply barrier.

These supplier and labor 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, additive manufacturing, green aviation, and digital transformation are reshaping job roles, but workforce readiness isn’t keeping pace. As platforms become more software-defined and interconnected, cyber risk is rising right alongside innovation.

Ransomware attacks in aviation surged a staggering 600% year-over-year, with 27 major attacks across 22 cybercriminal groups between January 2024 and April 2025, according to Thales’s aerospace cybersecurity brief.

And the talent gap is real. Cybersecurity roles in aerospace and defense are facing vacancy rates exceeding 30%, according to Talenbrium’s 2025 A&D Talent Gap Diagnostics — one of the highest shortage levels in the industry.

Without the right digital and cyber skills in place, technology investments stall, modernization timelines slip, and operational risk increases.

Geopolitical and regulatory headwinds

Geopolitical tension is reshaping the A&D landscape. Brexit, global trade tariffs, stricter export controls, and evolving regulations like ITAR have increased market uncertainty across global aerospace and defense markets.

These constraints don’t just affect where companies can sell, they directly impact who they can hire. Tighter clearance requirements, reduced cross border mobility, and data sovereignty rules are shrinking access to critical engineering, digital, and cyber skills.

At the same time, rising defense spending and heightened national security priorities are intensifying competition for a limited pool of cleared and compliance ready talent. The result: longer hiring cycles, delayed programs, and increased delivery risk — even when demand and funding are strong.

A&D talent shortage underlying factors

• Aging and attrition: Roughly one third of A&D manufacturing and engineering roles are held by workers aged 55 and older, according to industry analysis cited by AIAA and McKinsey in 2025. 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. Even where graduates are entering technical fields, many lack job-ready experience in AI, software, and digital manufacturing. Deloitte’s 2025 outlook points to this growing disconnect as a key friction point in scaling new capabilities.

• 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: Weak onboarding, limited career pathways, and underinvestment in upskilling fuel early attrition and drive up long-term recruitment costs. And losing talent is expensive. Aerospace America reports that the cost of replacing lost engineering capability can reach $300–$330 million for a single mid size A&D enterprise, once productivity loss and program disruption are considered.

Aerospace and defense talent strategies

Building your future-ready solution

Leading A&D organizations are moving away from reactive hiring and toward integrated workforce strategies — designed to solve today’s shortages while preparing for what’s next.

From Cielo’s work across aerospace and defense, the most effective talent strategies share one thing in common: they connect skills, leadership, brand, and culture into a single workforce system — not siloed initiatives.

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.

For A&D organizations, this shift is especially critical as retirements accelerate and traditional degree based pipelines fail to keep pace with digital and manufacturing skill demands.

2. Find the right leadership talent

Transformation requires leaders who can navigate complexity, redesign organizations, manage succession, and scale upskilling efforts. The right leadership talent protects you from the senior-level talent cliff and keeps momentum moving forward.

Strong leadership continuity reduces program risk, preserves institutional knowledge, and accelerates transformation — even as senior leaders retire.

3. Strengthen your employer value proposition

A strong employee value proposition (EVP) answers one simple question: why should great A&D talent choose and stay with you? Innovation, purpose, career growth and long-term stability aren’t perks. They’re expectations.

In a market where A&D talent has choices, a clear EVP is often the deciding factor — not compensation alone.

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

4. Build an engaging culture

In aerospace and defense, culture is no longer a “soft” factor — it’s one of the strongest predictors of mid-career retention and workforce stability.

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.

Together, these strategies shift A&D organizations from reactive hiring to workforce resilience — building the skills, leadership, and engagement needed to compete today and adapt tomorrow.

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’re ready to move from reactive hiring to strategic workforce transformation, Cielo’s here to help. Book a strategy consultation to learn how our A&D industry expertise can help you tackle today’s talent shortages and secure tomorrow’s innovation.