Bob Hale, chairman of RSM Robson Rhodes' National Manufacturing and Technology Group, commented: "Whilst a mixed picture has emerged over the past quarter, it is encouraging that companies are more optimistic for the coming three months.

It is important that companies continue to invest and, prioritise, if spending plans need to be cut back."

The UK has Europe's biggest, and the world's second largest, areospace industry by number of employees.

Boeing's approach to the 7E7's construction, involves reducing costs by having most of the plane manufactured by its global partners, and relying on its final assembly site to put together a handful of components in as little as three days.

To achieve this it has chosen to work with selected UK partners including Rolls-Royce, Smith Instruments, Cobham and the UK arm of landing gear provider Messier-Dowty.

The aerospace industry is characterised by long development cycles and Boeing has invested continuously to ensure it maintains its reputation for being at the cutting edge of the aerospace industry. A prime example of this is the $26.5m collaboration at the Advanced Manufacturing and Research Centre (AMRC) at Sheffield University, which builds on the shared scientific knowledge at Boeing and the research facilities within the University.

This has paid dividends in many ways, not least the selection of MessierDowty, who exploited technology at the AMRC to help win the 7E7 landing gear contract, " Jenkins explains.

www.eef.org.uk <$>www.boeing.com

The Boeing 787 will fly the skies of the United Kingdom in First Choice Airways livery beginning in 2009. First Choice, which offers both charter and scheduled service and is based near London, plans to acquire six 787-8 jetliners. The carrier will be among the first to offer passengers the 787's unique cabin features, including larger windows, wider aisles and higher humidity.