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Part Two - What Did Change Before 1934
It was a different story with aircraft production and therefore the production capacity of the aircraft and aero engine factories on the eve of Rearmament and the size of their design departments.
In 1923 the Cabinet approved an expansion scheme for a Home Defence Force of 594 aircraft in 52 squadrons plus 24 light bombers in 2 Emergency Squadrons to support the Expeditionary Force. The completion date was 31st March 1928. At that date there should have been 150 night bombers in 15 squadrons, 240 day bombers in 20 squadrons and 204 fighters in 17 squadrons in the Home Defence Force plus the 2 Emergency Squadrons.
At 31st March 1928 there were actually 332 aircraft in 29 squadrons. These consisted of 80 night bombers in 8 squadrons, 108 day bombers in 9 squadrons and 144 fighters in 12 squadrons. The planned number of light bomber squadrons had been reduced from 22 to 20 because the 2 Emergency Squadrons would be withdrawn from the Home Defence Force instead of being in addition to it. I have not included the 2 skeleton light bomber squadrons at the A&AEE in these totals.
At 31st March 1934 there were still only 39 squadrons or 75% of the force that should have existed 6 years earlier. The 39 squadrons consisted of 80 night bombers in 8 squadrons, 212 day bombers in 18 squadrons and 156 fighters in 13 squadrons. I have not included the 2 skeleton light bomber squadrons attached to the A&AEE or the squadron on loan to the Far East Command.
ITTL the 1923-Scheme was completed in March 1928. Therefore the RAF had the Home Defence Force of 594 aircraft in 52 squadrons, plus the 2 Emergency squadrons throughout the period 1928-34. The Air Ministry had to buy more aircraft to keep the larger force up to strength.
The RAF also maintained a bomber transport force of 50 aircraft in 5 squadrons rather than the OTL force of 24 aircraft in 2½ squadrons. The force of coastal reconnaissance flying boats and floatplanes was built up from 2 flights in 1923 to 14 squadrons in March 1934 in stead of the 7 squadrons of OTL. On top of the above there were the increases to the FAA described in the Fleet Air Arm 1923-39.
More work brought greater profits for the airframe and engine manufacturers some of which was ploughed back into greater spending on R&D and maintaining larger design departments. "More men with drawing boards and slide rules," should have allowed the firms to design new aircraft faster and build the prototypes in less time.
For example in the case of Supermarine, its main products before building the Spitfire were 83 Southampton (including 66 for the RAF), 14 Scapa and 17 Stranraer flying boats. ITTL it built 184 Southamptons (including 150 for the RAF), 28 Scapas and 34 Southamptons. That effectively doubled the income of the firm and enabled R.J Mitchell to employ more subordinate staff. Both the Supermarine Type 224 and 300 prototypes should have been completed and flown sooner. The extra factory space and workers required to build the extra flying boats would have helped Supermarine complete the first contract for 310 Spitfires placed in July 1936 by 31st March 1939 instead of 6 months later.
Note that Supermarine built 184 Southamptons instead of 166 ITTL because another 18 were ordered from the firm instead of the Blackburn Iris and Perth.