Merger and acquisition activity in the British aerospace manufacturing industry is expected to surge in 2012 according to a combination of new industry figures and the activity so far this year.

Takeovers and buyouts in the global aerospace industry reached a record high last year, with 341 deals being struck, according to the latest report from accountants PricewaterhouseCoopers. The deals were worth a combined total of $43.7 billion (£27.8 billion), surpassing the previous record from 2010 of $42 billion.

Lee Wild from The Investors Chronicle said that 2012 is likely to see rival suppliers of components fighting for greater exposure on projects such as the flagship fuel-efficient jets being made by both Boeing and Airbus, which are set to only increase in popularity over the course of the year.

“UK firms such as Senior, Meggitt and Ultra Electronics have already proved they can do deals here,” Wild explained. “Increasing bargaining power will prove a catalyst for some deals; for others the motivation will be better margins further up the supply chain or greater control over production by buying further down.”

He said that commercial aerospace projects will fuel the number of deals taking place, with defence companies joining the fray too, due to the falling number of government projects and organic growth opportunities in that sector.

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