Sector Deal: One Year On

Aerospace Sector Deal

One Year On

1 Aerospace Sector Deal: One Year On Foreword

The UK aerospace sector brings innovation, expertise and experience to developing and manufacturing advanced technologies at the heart of modern commercial aviation. Aviation is essential to connecting people across the UK and around the world, and the industry has been working consistently for decades to reduce fuel use. Driven by technology, each new generation of aircraft is on average 20 percent more fuel efficient than the generation before, and the UK aerospace sector has played a key role in driving these efficiencies.

Now worth £36bn a year to our economy, Colin Smith CBE – Co-Chair, this industry directly employs over 111,000 highly skilled people in jobs that pay 45 Aerospace Growth Partnership percent above the national average and are programme, is starting to build UK consortia spread across the breadth of the UK. of the best proposals for developing low As a result, this is a sector that ‘levels up’ carbon, environmentally friendly, advanced the economy – with 92 percent of the sector aerospace technologies of the future, adding based outside of London and the South to the high technology programmes being East. run by the successful UK Aerospace Research and Technology programme Since the Government and industry first delivered through the Aerospace came together at the end of 2010 to create Technology Institute. the Aerospace Growth Partnership, we have seen UK aerospace employment grow by 15 Reducing carbon emissions and achieving percent, while exports from the sector have Net Zero by 2050 will be at the heart of increased from £18bn in 2011 to more than Government’s economic strategy. Clean £34bn a year in 2018. growth presents an opportunity across the whole UK to improve productivity, drive The Aerospace Sector Deal launched in economic growth and reduce inequality, December 2018 was another landmark particularly for left behind places. As we look event in the partnership between to the future of aviation, our whole industry government and industry, which ensures we needs to be focussed on solving the can attract the investment for the UK to challenge of reducing the environmental remain a world leader in this sector and to impact of flying, even as global air travel develop the skills we need to thrive. continues to grow. In the last year, we have seen the Sector The rest of the world is accelerating towards Deal’s key programmes get underway. The a more electric future; large government- third round of the National Aerospace backed investments are being made today in Technology Exploitation Programme was the USA, Germany, France, China and launched in June at the Airshow, Japan, and the UK risks being left behind if supporting innovation in the supply chain. we do not invest at scale and pace.

The Future Flight Challenge, a gross £300m industry and government funded

2 Aerospace Sector Deal: One Year On

The range of programmes now taking place, Supply Chains for the 21st Century is underpinned by the portfolio of research and helping small and medium sized companies technology co-funded through the to continually improve their productivity and Aerospace Technology Institute programme competitiveness. - which now totals £2.6bn and involves 331 We are also focussed on making sure our partners including 203 small and medium industry is attracting the full range of talent sized enterprises - will all be vital to we need to continue succeeding. achieving this goal. The Women in Aviation & Aerospace The UK Aerospace Research Consortium is Charter now has now grown to more than providing the global aerospace community 133 signatory organisations and we are with a centralised point of engagement to working hard through a range of initiatives to our top university aerospace research promote science, technology, engineering, capabilities. and mathematics subjects and careers to The strength of our sectors lies not only in young people, helping to increase the UK’s the ability to operate at the cutting edge of engineering talent pool. technology but in the potential of small and The Sector Deal has helped drive our medium sized enterprises in our supply industry forward over the past year, building chains to compete as world leaders. on the success of our industrial strategy for Realising the success of investing in the aerospace. next generation of technologies and shaping We look forward to the Aerospace Growth future markets, relies on a competitive and Partnership, between industry and capable UK supply chain that is positioned Government, building further continuing to exploit these opportunities. tackling barriers to growth, driving the green A robust civil aerospace supply chain in the aviation agenda and making sure the UK is UK is also essential to support our the best investment location in the world for capabilities in defence, given that suppliers aerospace. cater to both industries.

3 Aerospace Sector Deal: One Year On Background to the Sector Deal

At the Farnborough International Airshow in research and development (R&D) July 2018, the Prime Minister - Theresa projects led by small and medium sized May, called for industry to work with enterprises (SMEs). government on an ambitious civil Aerospace  Supporting SMEs in the UK aerospace Sector Deal, to build on the strong supply chain to boost their relationship government has with industry competitiveness through a new through the Aerospace Growth Partnership productivity improvement programme. (AGP) and support the Industrial Strategy’s Grand Challenges, regional prosperity and  Committing the industry to embed a WiAA the delivery of the government’s skills Charter to increase diversity and inclusion priorities. in the sector.

She also called on the sector to embed a  Enhancing the joint working between the Women in Aviation & Aerospace (WiAA) aerospace industry and education Charter to bring greater gender equality to providers to ensure a strong future the industry. pipeline of talented people are available to ensure the UK aerospace sector The UK’s Civil Aerospace industry is a world remains globally competitive. leader in the development and production of engines, wings and advanced systems for The Sector Deal builds on the strong aircraft. It is a sector that has a strong record relationship between the aerospace sector of working in close partnership with and the UK government and success of this government to boost that competitive relationship has led the way to help inform advantage. the development of sector deals in other parts of the economy. The Sector Deal builds on our successes by positioning the UK to take advantage of the Looking forward, we have an opportunity to global move towards hybrid-electric and lead the world and position the UK as the electric propulsion and to exploit related new global hub for low carbon technologies, markets – drones and Urban Air Mobility including sustainable aviation fuels and (UAM) vehicles and signals the electric flight. government’s intention to position the UK at the forefront of valuable emerging markets. We look forward to working more closely with government, the wider aviation sector, The Sector Deal does this by: academia, and other collaborators, to provide solutions to help tackle climate  Boosting innovation through a joint change and to drive sustainable economic industry and government investment in growth in aviation. the Future Flight challenge, with up to £125m of funding from the Industrial We welcome the Aerospace Technology Strategy Challenge Fund, matched by Institute’s (ATI) revised technology strategy industry. This programme will invest in for the UK - ‘Accelerating Ambition’, which developing demonstrators of new aircraft provides a roadmap of the innovation (such as drones and other electric necessary to make sure that the UK can aircraft), new models of airspace continue to be a global leader. management, new approaches to ground support infrastructure and new markets for aircraft in local areas.

 Expanding our successful National Aerospace Technology Exploitation Programme (NATEP) with joint funding from government and industry to boost

4 Aerospace Sector Deal: One Year On Progress of Sector Deal Activities

Commitments were made by government and industry as part of the Sector Deal and these have been tabled in the following sections with a summary of progress against them. Ideas

Industry action to support Government action to support the aerospace sector the aerospace sector

Research and Technology (R&T) grant Research and Technology (R&T) grant support support  Match funding R&D programme support of  Match funding of government’s £1.95bn £1.95bn between 2013-2026. R&D programme to 2026.  Government will look to work with industry  Industry will match fund government grant to consider how best to take forward R&D support to take forward R&D. Individual and improving the effectiveness of supply grants awarded to companies will result in chains as the aerospace sector moves follow-on investments by those companies. towards more disruptive technologies.

Electrification and Autonomy Electrification and Autonomy

 Industry will co-fund government support  Up to £125m Industrial Strategy Challenge of up to £125m, Industry will also make Fund funding for the Future Flight Challenge follow on commitments in the knowledge which will implement activities to deliver that follow on R&D and capital/ more electric, autonomous and infrastructure investments will be needed environmentally friendly aviation and to develop and exploit the initial aerospace sectors. government supported activities.  It will offer new options for how people and National Aerospace Technology Exploitation goods could move around in the future and Programme showcase the UK as driving new mobility solutions.  Industry commit to match funding of £10m and delivery of high valued jobs in the long Small and Medium sized Enterprises term. engagement in R&D activities

 Prime, Tier 1’s and other larger companies  SMEs already benefit from R&D funding will provide support to assist small and support through the ATI programme. medium sized enterprises in the co-funded  To complement this and encourage more development of technologies towards SMEs to undertake R&D, further ATI R&D commercialisation. support is offered for open calls.  Industry will encourage greater  £13.7m funding for further rounds of NATEP participation in NATEP from companies in to bring small and medium sized employers the devolved administrations. and customer companies together to help SMEs develop technologies and bring them to market.

5 Aerospace Sector Deal: One Year On

Industry action to support Government action to support the aerospace sector the aerospace sector

UK Aerospace Research Consortium (UK UK Aerospace Research Consortium (UK ARC) ARC)

 UK ARC will work in partnership with  Government welcomes the establishment of industry, the ATI, research councils and this consortium which will bring a more government to seek to create a UK-wide coherent approach to university research in infrastructure of accessible, integrated and the UK and better align R&D activities with world-class university strategic facilities that industry. align with industry’s priorities.

Cyber and Digital Security

 Government welcomes the ongoing activity the UK aerospace sector has undertaken around cyber security, data and digital connectivity, and encourage the sector to progress this work further.

R&T Grant Support through the ATI Since the announcement of the Aerospace This is in addition to companies receiving Sector Deal, the ATI Programme has innovation support through NATEP which is continued to accelerate priority technologies funded under the ATI Programme. in composite wings, smart electrical systems The reach of the ATI Programme remains and next generation turbo fan engines for fully national, with leading edge research large aircraft. It has also supported a rapid taking place across the UK, securing high increase in technology development for value jobs. radical electric and hybrid-electric propulsion systems. The R&T grant support through the ATI has been very complimentary to the This expansion in research has seen 34 new Government’s ambition to raising R&D organisations join the programme, 25 of investment to 2.4 percent of GDP by 2027 which are small, highly innovative and the longer-term goal of 3 percent as a businesses, taking the total to over 260 proportion of GDP. unique entities engaged in this national technology drive.

ATI Programme Statistics

To date, industry and government have each committed £1.3bn through the ATI, bringing the programme to a total of £2.6bn worth of research activity since 2013. ATI assess this investment as delivering £78bn in value add and spillovers across the UK.

As at January 2020

6 Aerospace Sector Deal: One Year On

Significant technological progress has been Securing this work in the UK helps continue achieved, with major wing and engine Rolls-Royce’s presence across the UK from programmes approaching technology Bristol to Inchinnan in Scotland. readiness level (TRL) 6. These programmes The UK has taken a lead in the development are entering a critical phase of development of electric and hybrid-electric aircraft involving full-scale assemblies and extensive involving established aerospace companies testing that will take place over the next as well as new entrants bringing technology three years. from other sectors. These programmes This includes the first operation of an entirely cover kilowatt and megawatt class hybrid- new engine core by Rolls-Royce as part of electric demonstrator aircraft that deliver the UltraFan programme and delivery of new significant further improvements in advanced manufacturing methods for large- environmental performance of aircraft. scale composite wing structures by GKN The ATI programme’s ambition and Aerospace, and Spirit as part of the approach to electrification is capturing global Wing of Tomorrow programme. attention and aligns with the Future Flight The UltraFan programme provides a Challenge supported through UK Research platform for industry to understand how to and Innovation (UKRI). make new engine systems more efficient Some examples of ATI funded projects are and facilitate the adoption of electric provided below: technologies.

ATI led Projects starting in 2019 ATI led Project Concluding in 2019

HyFlyer – ZeroAvia with Intelligent Energy as SECT-AIR aimed to reduce aerospace consortia partner (2 new entrants) is software development costs through increased developing a new automotive hydrogen fuel automation, greater reuse of artefacts and cell tech into the aerospace world for zero methods, and by developing new technologies emission flight in light aircraft. to reduce the costs of obsolescence that afflict the aerospace software industry. The project Fresson - Cranfield Aerospace are leading a involved around half of the UK total aerospace consortium with Britten-Norman, Rolls-Royce, industry. Denis , Delta Motorsport and Warwick Manufacturing Group to develop a 9-seat The project will secure the UK’s role as an aircraft capable of all-electric, emission free, aerospace software centre of excellence, flight. This project will advance technology for reduce cost and time to market for UK hybrid electric propulsion of a larger 19-seater systems, reduce risk in new systems , delivering significant environmental development and increase high-value jobs in benefits in this class of aircraft. the sector.

AirTek – Williams Advanced Engineering, JPA design and SWS Certification (3 new entrants) will develop innovative composites to create significantly lighter seats based on supercar technology, potentially saving up to 78,500kg of CO2 per year for each aircraft fitted.

7 Aerospace Sector Deal: One Year On

Next Steps

The ATI published its new technology the most efficient commercial aircraft. This strategy, Accelerating Ambition, that sets out strategy will push for technologies that help fresh priorities for the programme mitigate aerospace’s environmental impact (https://www.ati.org.uk/publications- and will open new markets for urban and tools/publications/). regional aircraft, in addition to new large passenger aircraft expected in the coming This ambitious agenda seeks to put the UK decades. at the forefront of delivering technology for

ATI Project Case Study

Following R&D support provided through the ATI Programme in 2015, Spirit AeroSystems were able to develop a new composite technology that increased automation and out of autoclave manufacturing processes for a spoiler component.

This project was the first industrialisation of this new composite technology in the UK aerospace sector and helped repatriate a work package and create 100 jobs back to Spirit’s Prestwick facility from a low-labour cost country in 2020.

This is a demonstration of how investing in R&D can develop cost effective new technologies and manufacturing processes that create jobs and help the UK stay globally competitive.

Courtesy: Spirit AeroSystems

8 Aerospace Sector Deal: One Year On

Future Flight Programme - cities and create local take-off and Electrification and Autonomy landing points equipped to accommodate new forms of aviation. The Industrial Strategy Challenge Fund -  New aircraft: novel aircraft and drone Future Flight Challenge, was launched in designs featuring autonomous and August 2019 with an aim to revolutionise the electrical technologies producing clean, way people, goods and services fly, quieter and cost-effective aircraft for positioning the UK as a world leader in regional and urban use. aviation products and markets worth over £500bn to 2050. Industry engagement with aerospace and the broader aviation community has been International activity around electrification, extensive. The programme is working and autonomy and UAM, remains high, it is well placed to continue in 2020. Phase I of crucial therefore that the UK also the programme closed in November 2019, participates. For example, Volocopter of with more than 200 organisations submitting Germany, demonstrated passenger carrying expressions of interest. capability at the Singapore Intelligent Transport System Expo and indeed, Vertical Following independent evaluation, 150 Aerospace, a Bristol based organisation, are participants representing over 110 now executing early flight testing. Cities organisations and new entrants were such as Paris are also encouraging shortlisted to attend a 2-day workshop in organisations to step forward to enable February to continue to develop project utilisation of UAM solutions at the Paris proposals. Representation is diverse in Olympics 2024 in temporary airspace terms of organisations size, geography and corridors. capabilities. Phase II seeks to invest up to around £60m of government and industry Future Flight is positioning the UK as money over 12 to 18 months starting uniquely innovative and collaborative in Autumn 2020. developing and incorporating autonomous and electric capabilities, attracting A deepening relationship between the investments from international organisations Future Flight Challenge and the Civil in the UK. Aviation Authority (CAA) is taking shape; regulatory development in the sector is lynch The approach, whilst involving academia, is pin to commercial development. The CAA being acknowledged for its industrial has established an Innovation Hub to contribution to drive forward facilitate early and ongoing engagement with commercialisation of innovations in innovators, including new entrants to the aerospace into the wider aviation sector. aviation market. The CAA will also be Future Flight will cover four areas of activity: working closely with the Future Flight Challenge to ensure that safety is central to  Control and regulation: new models of the development of new aviation technology. airspace management and anticipatory This should put the UK in pole position to regulation that can integrate remotely lead international developments. piloted and/or highly autonomous aircraft.

 New operating models: new operating models for users and commercial operators.

 Ground infrastructure: ground to air infrastructure systems and service models, integrated with multi-modal transport links that integrate drones into

9 Aerospace Sector Deal: One Year On

Developing Strategic National Aerospace Technology Competencies Exploitation Programme

Given the global aerospace sector is Announced in the Sector Deal, NATEP 3 technology led, understanding future continues to encourage small businesses technology and capability needs is critical to into a structured R&D environment. This is a ensure the supply chain maintains a vital step in ensuring the UK has a competitive advantage. competitive supply chain to support customer companies and help anchor them The strategic competency analysis (SCA) in the UK. conducted by the AGP has identified strategic capability gaps, and suggested There have been three rounds of NATEP activities to drive more collaboration and funded by the Government (and Invest business opportunities, create highly skilled Northern Ireland for Northern Ireland) and jobs, and to make the UK more competitive industry. During 2019/20, the NATEP 2 so British businesses can compete with programme will continue through to rising economies. conclusion as activities in the NATEP 3 programme increase. Through 2018 and 2019, several industry- led workshops were held to develop the The NATEP approach of Government SCA themes, with the ATI and High Value working with SMEs to provide industrial Manufacturing Catapults (HVMC). These mentoring is seen as a key approach to workshops included the research networks introducing the SME to structured R&D as well as regional alliances to ensure all programmes. parts of the UK’s aerospace ecosystem were NATEP continues to be an in-demand agreed with the approach and outcomes. programme with 35 projects being delivered 9 key product areas were assigned UK through NATEP 2 which includes 96 funded company leads to develop initial position partners and 53 end users across England papers focussing on validating market and Scotland. opportunities. Subsequent business cases This builds on NATEP 1 which supported have been developed, identifying capability 224 funded partners and 84 end users. The gaps and a quantifying feasibility of most recent NATEP programme, NATEP 3, investment. launched in August 2019 with £10m support The SCA activity found that through an from Government, matched by industry to approximate £1.6Bn investment there is a create a £20m programme, aimed at funding potential market opportunity of over £37Bn. ~64 projects over 4years. The activity identified several investment The initial call in July 2019 targeting 16 opportunities in the Single Aisle, UAM, projects generated 30 project proposals of autonomy and other markets and their which 17 have progressed to the formal requirements in infrastructure, equipment review stage. A second call concluded in and technology development that will enable early December with 24 expressions of their success. interest. The SCA activity is now complete, with 2020 onwards looking to address the identified capability gaps, through further collaboration, particularly in the linking of all the tiers of the supply chain, including SMEs.

10 Aerospace Sector Deal: One Year On

NATEP Case Study

With support from NATEP, INSPHERE, based in Bristol, developed the BASELINE system. Their partners in the project are Hexagon Manufacturing Intelligence, the Nuclear Advanced Manufacturing Research Centre (AMRC) and end-user, Rolls-Royce.

BASELINE provides full verification of large machines in less than an hour. This helps reduce downtime and waste thereby reducing costs and reducing the impacts on the environment. Since its launch, there have been expressions of interest across UK from aerospace, automotive, nuclear and oil and gas sectors.

INSPHERE has already expanded to 10 employees and plans to employ more people as its growth accelerates. The new roles will range from application and software engineering to sales and customer support functions.

BASELINE system developed through NATEP support

UK Aerospace Research 2019 has been spent getting the foundations Consortium in place, agreeing research priorities, collaborative arrangements and the future There are now 11 Universities forming the work plans. UK ARC is now formally UK ARC – Bristol, Cambridge, Cranfield, represented on the AGP. There have been Imperial College, Manchester, Nottingham, good discussions with the ATI and Queens Belfast, Sheffield, Southampton, Engineering and Physical Sciences Strathclyde and Swansea all committed to Research Council (EPSRC) on how to bring the U.K.’s leading aerospace improve the alignment between business universities together. and university objectives, where appropriate.

11 Aerospace Sector Deal: One Year On

The UK ARC has been working together in This bid offers the potential to leverage more the aerospace and aviation policy space and effectively the wealth of world-leading for the green paper consultation around Research and Test Facilities. aviation 2050. UK ARC responded for the The UK ARC will play a key role in framing very first time with a collective voice, UK aerospace research capabilities around something it will be looking to do the demonstrators and system development increasingly as the consortium develops. requirements of the UK sector and catalyse This bid into the Future Flight Challenge the research programme. It will also support provides strong commitment of the UK the accelerated realisation of new aircraft aerospace research universities and offers a platforms with hybrid electric propulsion and 'one-stop-shop' structure and collective optimised autonomous operation. research strengths and capabilities for businesses involved in the Challenge at a level never seen in the UK.

Conclusion

The success of the UK’s aerospace sector is underpinned by the development and subsequent manufacturing of cutting-edge technologies. This is increasingly important as the sector becomes more globalised and the drive to tackle climate change continues. Following the survey work1 undertaken by BEIS in 2019 with industry2 an indication of the level of R&D undertaken compared to that which receives government support is given in the chart below.

It is also recognised that industry undertakes a great deal of privately funded R&D activities that do not receive any government support.

1 BEIS undertook a survey of certain companies in the UK aerospace sector to ascertain information relating to the subject areas of the sector deal. Not all companies provided responses to all sections or information provided was not consistent with other information previously provided to BEIS by industry, therefore the data received and presented in this document should be considered as illustrative only.

2 Airbus, , Bombardier, Collins Aerospace, GE, GKN, JJ Churchill, Leonardo, , Rolls-Royce, Helicopter Engines, , Safran Nacelles, Safran Power, Safran Seats, Spirit, Thales & TT Electronics.

12 Aerospace Sector Deal: One Year On People

Industry action to support Government action to support the aerospace sector the aerospace sector

Women in Aviation & Aerospace Charter Women in Aviation & Aerospace Charter

Key activities include:  The aviation and aerospace industry, supported by the Department for  Committing to the progression of women into Business, Energy and Industrial Strategy senior roles. (BEIS) and the Department for Transport  Having one member of the Senior Executive (DfT), have developed a charter that responsible for gender diversity and commits them to work together to increase inclusion. the levels of diversity and gender balance  Setting internal targets (where appropriate) in their companies. for gender diversity in senior management, Development of Apprenticeship standards publishing progress against targets annually.  Government and the devolved  Industry commits to publicly reporting on the administrations are keen that people have implementation of the Charter. the right skills to secure high-paying jobs. Delivery of apprenticeship standards To that end the Institute for Apprenticeships are working with  Industry commits to working with Institute for Trailblazer Groups to put in place Apprenticeships and devolved apprenticeship standards. These will help administrations to deliver apprenticeship deliver the skilled individuals needed by level 3, 4 and 5 standards and develop clear the UK for it to prosper. progression routes.  Government will work with employers to  Industry commits to identifying its current monitor the impact of the apprenticeship apprenticeship cohort and maximise the levy and continue to analyse all number of apprenticeships starts. apprenticeship starts.  Industry will engage in the review of level 4  Government considers that school and 5 training and provide evidence as children should be introduced to industry appropriate. at an early age to better inform them  Building on the current suite of activities about career choices. As a result, industry already carry out they commit to government is putting in place school- helping design a programme of school- based employer encounters and short- based employer encounters and set out a term work placements. programme of short-term work placements.  Industry will commit to the development of T- level standards appropriate to the activities of the sector.  Industry will provide industry placements.

13 Aerospace Sector Deal: One Year On

Education and diversity in the sector are Maths (STEM) subjects, aerospace specific areas of focus. Only by attracting and events like Airshows and also direct retaining skilled and talented individuals to outreach and talks at schools and colleges. the sector will the UK be able to exploit the Industry will now consider if there are benefits of having a globally competitive activities where a joined-up approach to aerospace industry. Encouraging young outreach might be more effective. people into the sector is critical to ensuring Gender diversity is also an area where the the continuation of knowledge and sector recognises more needs to be done. capability. The Women in Aviation & Aerospace The BEIS 2019 aerospace survey shows the Charter (further detail available on the next average age of aerospace workers in the UK page) has committed to undertake research as 49.3yrs for men and 45.6 for women. This in this area, enable greater networking suggests that the UK’s aerospace sector is opportunities and share best practice; all on the cusp of having an aging workforce - with a view of developing a more balanced school and apprenticeship programmes can and fair industry and supporting women into be used to attract younger workers to the more senior roles. sector and overcome this issue. The BEIS 2019 survey highlighted the below The survey indicates that the sector diversity in the sector, this, alongside the undertakes a great deal of company work to be undertaken by the Charter group, outreach work already through attending is the first step in understanding the current national exhibitions encouraging the take up position and putting actions in place to of Science, Technology, Engineering and improve it.

14 Aerospace Sector Deal: One Year On

The data provided by industry also allows us investments to 2.4 percent. The results are to set out the percentage of employees who consistent with the aerospace industry being (broadly) are connected to taking forward R&D intensive and provides the basis for the R&D activity. This is relevant given UK to reach government’s 2.4 percent R&D Government’s ambitions to increase R&D investment target.

The Women in Aviation & Women in Maritime Charter (launched in Aerospace Charter September 2018), the Women in Technology Charter, and the Women in The Women in Aviation & Aerospace (WiAA) Defence Charter (launched in September Charter was officially launched in July 2018. 2019). With support from BEIS and DfT the WiAA Moving forward, the Charter will continue its Charter now has some 133 Signatories, 43 work with the Government’s Equalities Office supporting organizations, a Steering with respect to co-ordination with other Committee and a facilitation team to drive Charters to share synergies. A key focus of the Charter forward. the Charter team is to publish a review of the The WiAA Charter work programme has five current gender diversity within both the main pillars: Research & Report, Networking aviation and aerospace sectors in time for & Communications, Best Practice Sharing, International Women’s Day on 8 March Driving the Charter & Signatory 2020. In addition, the Charter is looking to Development, and Financing & Funding agree reporting metrics for member Strategy. companies. In addition to the Aerospace Sector Deal, the Charter has also been embedded within the DfT’s “Aviation 2050 - The Future of UK Aviation” consultation which was launched in December 2018). The Charter has provided active support to other industries embarking on their own gender diversity journeys such as the

15 Aerospace Sector Deal: One Year On

Skills Development Semta Clearing House Pilot has been developed and introduced to the industry. The aerospace sector is highly technical and This is an online platform designed for at the forefront of developing and aspiring apprentices who have been manufacturing cutting edge new unsuccessful in their application for an technologies that can be exploited across apprenticeship at Prime companies, to have sectors beyond aerospace. To deliver this a their application passed throughout the good supply of highly skilled people are supply chain. Over 200 candidates have needed to meet the demands. This process signed up to the online platform over the starts at school and ends with people past 6 months. working in the sector and continuing to learn ‘on the job’. In return, employees in the Industrial Cadets programme sector can expect to be well paid with wages typically ~40 percent higher than the national Through the AGP, a sectoral approach for average. Industrial Cadets was piloted, encouraging Aerospace employers to channel early A key vehicle for attracting people to the careers activity through the Industrial Cadets sector is through apprenticeships and framework approach. The pilot more than apprenticeship standards. Industry has doubled the numbers of young people going made substantial progress on developing through the Aerospace Industrial Cadets relevant apprenticeship standards, three Programme, from 800 in 2016/2017 to 2000 new standards have been introduced; an in 2018/19 Engineering and Manufacturing Technician Standard, an Aerospace Software Through the Industrial Cadets framework Development Engineering Standard, which young people take part in quality has been incorporated within the Digital benchmarked experiences, supported and standard, and a Level 6 Airworthiness mentored by industry (at Industrial Cadets Maintenance Standard. levels: Challenger, Bronze, Silver, Gold and Platinum, which range from 5 hour An end point assessment for the level 4 experiences to 1 year placements) and apprenticeships has also been introduced. In become nationally recognised Industrial conjunction with these introductions to Cadets, resulting in an award for the young industry, development towards a Space person and recognition for Aerospace Engineering Technician Level 4 standard is employers. Overall, 91 percent of Industrial underway. Cadets agreed that they have improved their skills as a result of their Industrial Cadets In total, the industry has seen 7,124 experience. apprenticeship start-ups in 2019 from 11 different companies across the ‘Aerospace STEM engagement and educational Airworthiness’ with a mix between Primes outreach activity is utilised by employers to and SME’s. For example, Airbus has enhance and develop talent pipelines, employed 15 postgraduate apprentices in support recruitment and deliver Corporate engineering (Level 7 standard). Social Responsibility strategic objectives. The Group Training Associations England Working in collaboration, the AGP is creating organisation (GTA) consider that SME’s a proficient future workforce by encouraging have had a total start-up of 5,621 with all and supporting employers within the sector Level 3 standards from Engineering to develop and deliver quality schemes; Technician to Engineering Operative. Lastly, helping to develop skills, raising awareness in leadership apprenticeship standards, 22 of careers and all routes to employment and apprentices have been enrolled in ‘Project supporting young people to make informed management level 6 standards’ and 3 have choices about their future career pathways. been taken up for the ‘Team leader level 3 standard’.

16 Aerospace Sector Deal: One Year On

Future Skills Requirements for route to close the gap. A paper has been the Aerospace sector circulated to industry and academic stakeholders that sets out the group’s view With new technologies being adopted at of the key areas of future skills development pace to deliver new products and needed to support productivity and adoption improvements in manufacturing processes, of emerging technologies. The paper the need to upskill the existing workforce at identifies at a high level the areas of skills the same time as identifying future skills development across four groups requirements, is critical to the success to the ‘Manufacturing Fundamentals, Emerging aerospace sector. Technology, Business Management and Industrial Digitalisation’. Work to do this will provide evidence to support employer-led revisions to standards Work identifying the skills needed to deliver and identify new standards. It will also help future technologies will continue through the sector develop training materials to 2020 with a series of Foresighting enable the training and upskilling of its Workshops. The aim of these is for existing workforce. stakeholders to agree the roles, occupations and standards required to meet the future Other sectors have also recognised this and needs of the sector. This will be used to are undertaking similar review activities inform the review and amendment of (defence and automotive) of their training standards by the Institute for demand. It is expected that there will be a Apprenticeships and Technical Education, high degree of commonality in the skills ensuring technical education provision is fit requirements needed across these sectors for purpose in the future. and the aerospace sector, how the sectors collaborate will therefore be important. The AGP Skills Group is continuing work to build an understanding of the future skills requirements of the sector and create a

17 Aerospace Sector Deal: One Year On Infrastructure

Industry action to support Government action to support the aerospace sector the aerospace sector

Infrastructure Infrastructure

 Industry commits to increase investment to Future Flight Industrial Strategy Challenge commercialise R&D and related activities Fund programme and / or productivity improvement activities.  As a result of the funding provided by government to help industry deliver the Future Flight Challenge, we expect there to be investments in infrastructure / equipment.

The aerospace industry is an infrastructure nature of work. The trend in infrastructure ‘heavy’ sector with significant investments in investments is an important signifier of facilities and equipment. This is usually industries commitment to the UK aerospace somewhat mitigated by the often-longitudinal sector.

The BEIS 2019 survey asked companies to set out their level of infrastructure spend over recent years and the data shows a healthy increase in overall infrastructure spending in the sector.

18 Aerospace Sector Deal: One Year On

Infrastructure Case Study

GKN Aerospace’s new Global Technology Centre in Bristol will be a hub for world-class innovative technology for the next generation of fuel-efficient aircraft.

Opening autumn 2020, the new centre is funded by investment of £17m from GKN Aerospace and £15m from the UK Government through the ATI.

The centre will host 300 engineers and focus on advanced composites, additive manufacturing and industry 4.0 processes to enable the high rate production of aircraft structures.

19 Aerospace Sector Deal: One Year On Business Environment

Industry action to support Government action to support the aerospace sector the aerospace sector

Supply Chain Spend SME and customer engagement in productivity improvement programmes  Industry aspire to raise annual growth in the UK supply chain spend from 1 percent  SME and customer engagement in towards 4 percent3 (closer to the most productivity improvement programmes. recent global average spend rate).  Government is supporting the New Supply Chain Competitiveness implementation of a new supply chain programme Competitiveness programme to assist SMEs who want to improve productivity and  Industry commit to match government competitiveness. support £10m. Implementation of government’s Export Promotion of Structured Support Activity Strategy

 Industry commit to promoting structured  Government has published its Export activity building on the aerospace Supply Strategy, which sets out measures to Chain Charter and helping SMEs to encourage, inform, connect and finance UK strategically exploit the support available firms to export. It is looking to business to through AGP activities (SCA and support this by contributing to the productivity improvement programmes for development and promotion of export example). related activities.

Implementation of government’s Export  Through UK Export Finance, ensure that no Strategy viable UK export fails for lack of finance or insurance from the private sector, helping  Industry commits to working with businesses address lack of access to Department for International Trade (DIT) finance and manage the risks of exporting. and BEIS to support the government’s Export Strategy including identifying sectoral Export Champions to help promote the benefits of exporting to others.

3 Numbers derived from the BEIS UK Aerospace supply chain survey 2016.

20 Aerospace Sector Deal: One Year On

Having an attractive business environment is Following the BEIS led 2016 Aerospace key to ensuring Primes, Tier 1’s and Original Supply Chain survey, the data indicated that Equipment Manufacturers continue to invest growth of spend in the global supply chain in the UK and attract a competitive supply was ~5 percent but that growth of spend in chain to service their needs. the UK’s supply chain was ~1.4 percent. The level of spend the UK supply chain Using the data obtained through that receives versus that spent in rest of world, is exercise and recent survey data4 the chart a key indication of how competitive the UK below illustrates that the gap between global aerospace market is. Government is and UK spend growth is starting to narrow. supporting the delivery of two productivity The increase in spend in the UK can be improvement programmes, SiG and Supply viewed as a proxy for competitiveness, that Chain 21 (SC21) – Competitiveness & is, only by being more competitive will UK Growth (C&G). Government seeks to make suppliers secure more work. the UK the best place to start and grow a business. A further indicator of how competitive the UK supply base is, is the number of contracted However, analysis indicates that growth in suppliers upper tier companies have in the the UK aerospace sector has failed to keep UK. The data from the 2019 BEIS survey pace with the rate of growth being illustrates an upward trend in the number of experienced in the global aerospace sector contracted suppliers although the data for – this is leading to missed opportunities for 2018 appears to indicate the move of upper the UK including missed opportunities for tier companies towards consolidating their growth in those aerospace clusters outside supplier base. of the South (South West, Midlands and North West).

4 The data was supplied by companies and aggregated together. In certain instances, this data has appeared to be inconsistent with data supplied in earlier survey activities, BEIS has worked to ‘smooth’ this data out as far as is possible including removing inputs where they appear erroneous. Some of the inconsistency may have resulted in merger and acquisition activity or where work packages have been won or lost. These activities will result in increases or reductions in supply chain spend and will distort the trend lines.

21 Aerospace Sector Deal: One Year On

The UK Aerospace Supply Chain on 13 May 2019 at MEP Ltd, Aylesford and Competitiveness Charter finishes on 30 March 2022 and is being used to support improvement activities in the Further to the announcement of the Sector Aerospace supply chain through training, Deal the UK Aerospace Supply Chain coaching and mentoring. As of 24 Oct 2019, Competitiveness Charter has received 103 individual Expressions of Interest have increased attention with Primes and Tier 1's been received. These have fallen into the further encouraged to increase their support following primary technologies: 34 percent to their UK suppliers. Through the principles Systems and Equipment, 31 percent of the Charter, Primes and Tier 1’s have Aerostructures, 24 percent Processes and been further encouraged by the AGP to Materials, 7 percent Propulsion, 3 percent provide the UK supply chains with every Civil Engine, 1 percent other. This includes possible opportunity to win new business. In SME businesses from across the UK March 2019 the AGP held a round table with mainland and Northern Ireland. the procurement heads of large aerospace Programme Progress companies supported by data gathered from these organisations on their procurement Companies have yet to enter the spend and supply chain support activities in Improvement Plan phase, however feedback the UK. Individual meetings were from potential beneficiaries who have subsequently held with 12 Primes and Tier experience of other diagnostic tools has 1’s and over half of the Primes were been extremely positive, and benchmark considered active with half needing to well against SC21 OE, European improve. A second Head of Procurement Foundation for Quality Management (EFQM) meeting is planned for April 2020. Under the and SiG. The launch of the above umbrella of the Charter, consideration is programme generated an upsurge of interest being given as to how supply chain support in the SC21 OE programme, which programmes are more aligned to deliver continues to support the development of improvements in productivity and more than 250 businesses. competitiveness of UK based suppliers. Next Steps Supply Chain 21 – Under the umbrella of the Supply Chain Competitiveness & Growth Charter, a supply chain improvement The SC21 C&G programme is the programme has been conceived. The intermediate step on the performance programme labelled 'Supply Chain 2025 - improvement Ladder between SC21 300', has an objective to deliver a supply Operational Effectiveness (OE) (lower) and chain with increased critical mass capable of SiG (higher). It is specifically designed to competing globally for work. This will involve focus on increasing competitiveness and delivering 300 suppliers performing and improving organisational capability in the innovating to a world-leading level. This will eyes of the customer. The programme uses necessitate extending the current set of the National Manufacturing Competitiveness improvement programmes in a more aligned Level (NMCL) system, which is common to and strategic manner and will create a pull the Automotive productivity programme on the Charter commitments. NMCL Auto. The programme’s approach includes a capability assessment tool, Assessors, 122 Improvement Modules (Cross sector), Module Providers and a Programme Management Office. The £10m of Government funding is planned to improve 78 Aerospace beneficiaries over three years. The programme was launched

22 Aerospace Sector Deal: One Year On

Export Strategy and Trade As a result of these events and Government Promotion Activities engagement, we now have evidence of where the Sector Deal and the underpinning Since the launch of the Sector Deal, AGP activity is supporting business to thrive Government has extended its support to overseas. business to assist them in their exporting ambitions. Leveraging various elements of Companies who have completed SC21, and the Sector Deal around Technology, those with Silver or Gold status and those Competitiveness and Productivity, across benefiting from SiG are more likely to be Government in BEIS, Ministry of Defence selected for Government sponsored trade (MoD) and DIT, in collaboration with missions, all of whom are specifically Aerospace, Defence, Security and Space selected by the customer. (ADS) Group and the regional trade Our shared objectives for supporting associations, there has been a marked industry in securing new export contracts in increase in export focussed events and the next year is to continue to build on these activity. successes by: Principal international engagement has  Opening markets to new customers for focussed on Government led trade missions existing and new exporters in the UK. to key customers, and a strong Government and industry presence at major global  Promoting the UK’s strengths in events including the Paris Air Show in June technology leadership and innovation to 2019. grow exports. Whilst business wins take time to manifest,  Making the case for competitiveness and these missions have allowed suppliers to productivity improvements as a path to demonstrate the strength and depth of the successful exporting. UK’s offer to this global sector where it might not otherwise have been possible. We will be continuing to pursue export opportunities in the core aerospace markets In the year since the Sector Deal was in Europe and North America as well as announced, the Government has delivered emerging opportunities in China and Brazil international trade missions to Collins where government can add value to UK Aerospace, Pratt & Whitney , businesses seeking to access these Gulfstream and Spirit AeroSystems as well markets. as the Government’s continued strategic engagement with Boeing through the Prosperity Partnership culminating in the 3rd major trade mission to Boeing in September this year.

23 Aerospace Sector Deal: One Year On Place

Industry action to support Government action to support the aerospace sector the aerospace sector

Local Industrial Strategies Local Industrial Strategies

 Industry will work with local and national  Local Authorities and Local Enterprise government to deliver Local Industrial Partnerships have been commissioned to Strategies that assist the sector in develop and agree investment strategies for becoming more productive and their areas that set out, strategically, how competitive. they propose to attract and develop investments in their area. Devolved Administrations (DA) Devolved Administrations (DA)  Industry will continue to engage with the DAs encouraging them to support and  Government seeks to build on its strong participate in AGP supported activities. relationship with the DAs to ensure a coherent approach to business support activities for aerospace across the UK, including delivery of the UK Aerospace Strategy.

The UK’s aerospace sector is geographically including the DAs. The map below form ADS spread with a large proportion of businesses illustrates the spread of companies, and located outside of London and the South employment, in the UK’s aerospace sector. East, it therefore contributes a great deal of high-paying employment across the country

Credit: ADS, based on 2018 Office for National Statistics data

24 Aerospace Sector Deal: One Year On

Government and industry recognise the A conference was held in 2017 focussing on value of the sector to the Devolved areas: LEP / AGP engagement with attendance Northern Ireland, Scotland and Wales. As a from AGP Board members, Regional result, Government works collaboratively Aerospace Alliances (RAA), DAs and LEPs. with these administrations to ensure industry The conference received positive feedback, continues to invest and that these areas a clear overview of the AGP and ATI benefit from national activities as far as is strategies were presented and opportunities possible. Similarly, these areas have agreed to collaborate were reviewed. to promote the national Aerospace Strategy, Since then, the AGP and LEPs have developed through the AGP, to ensure continued to work together. Building on the alignment for industry and so ensure the UK 2017 engagement, a further AGP - LEP and speaks with one voice. Regionals meeting was held in July 2019 at As well as working with the DAs, Derby. The meeting was attended by LEPs Government and industry are engaging with with a specific interest in aerospace the regional powerhouses – Midlands activities, as well as Regional Aerospace Engine, Northern Powerhouse and Western Alliances. It provided an opportunity to Gateway. These regional vehicles align with present the AGP strategy focussing on the aerospace industrial clusters, it is innovation & technology, skills development, therefore critical that national and regional supply chain competitiveness and clean strategies work together, avoid duplication growth and environment. and deliver as many benefits as possible. Moving forward, the AGP and the Auto Local Industrial Strategies Council held a further session in January 2020. This followed recognition that both the The aerospace industry, through the AGP sectors have common requirements and continues to work with LEPs to deliver Local agendas and a similar structure and Industrial Strategies that assist the sector in approach to engaging with local and becoming more productive and competitive. devolved governments.

Place Case Study

Leonardo Helicopters (LH) MW Ltd, based in Yeovil, Somerset, and Government invested more than £100m, through the Regional Growth Fund (RGF), to transform a predominantly defence focussed facility into a civil manufacturing hub. This investment generated greater business for the local supply chain and helped create / safeguard 500 jobs. It also upskilled engineers and manufacturing roles which, in turn, have seen crucial contributions to platforms like the AW169 helicopter.

Helicopters like the AW169 perform Emergency Medical Services missions in the UK to far-reaching communities as well as conducting police operations.

Leonardo AW169 – Kent, Surrey & Sussex Air Ambulance, Lincs & Notts Air Ambulance and Dorset & Somerset Air Ambulance Services. Photo by Simon Pryor/ Leonardo Helicopters.

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Devolved Administrations Northern Ireland Aerospace looks forward to continuing this exceptional performance and Northern Ireland growth. Every major commercial aircraft programme depends on structures, components Northern Ireland is a global leader in aerospace and services from Northern Ireland and provides technology and has a dynamic, rapidly growing a third of the world’s commercial aircraft seats. international aerospace industry founded on a Delivering the award winning advanced strong engineering heritage that is rich in composite wings for the A220 and the knowledge, skills and experience. increasingly important interiors segment will help Performance drive the future of Northern Ireland’s aerospace sector. In 2019, it was announced that from 2014-2019, To support further growth, in March 2019 the UK Northern Ireland Aerospace annual revenue increased by 90 per cent from £1bn to £1.9bn. Government and Belfast Region Councils Employment also increased from 8,000 to 10,000 announced a £500m Belfast Region City Deal, which included a proposal to create an Advanced skilled staff during the same period. This represents tremendous growth against the Manufacturing Innovation Centre. The centre will Northern Ireland Partnering for Growth 2024 work with industry and academia, including target outcomes to double revenues from £1bn to Northern Ireland’s critical aerospace sector to accelerate the development of new £2bn and increase employment from 8,000 to manufacturing technologies. 12,000 skilled staff.

Devolved Administration Case Study

Production ramp-up is well under way in Bombardier’s Belfast operation on the award-winning advanced composite wings for the A220 aircraft. The wings minimise the aircraft’s environmental impact by reducing both weight and fuel burn in flight, as well as reduced waste during manufacture. The A220 is amongst the latest generation of fuel-efficient aircraft, contributing to the progressive decarbonisation of the air transport industry.

26 Aerospace Sector Deal: One Year On

Focus achieved by the Northern Ireland supply chain. Fifteen Northern Ireland companies Northern Ireland Aerospace remains continue to maintain silver and eight focussed on increasing its global reach and companies bronze status. improving its competitive position. In addition to maintaining a strong commitment to To build on the success already achieved, investment in R&T, Northern Ireland Northern Ireland Aerospace will remain Aerospace will place an increased focus on strongly engaged with its award-winning enhancing the performance of the sector supply chain which remains central to its throughout 2020. This will be actioned growth strategy. through skills development, apprenticeships Looking ahead and by providing encouragement to ensure aerospace attracts and develops the right Northern Ireland Aerospace will continue to talent to achieve future growth. enhance its partnerships with BEIS and DIT and to build ever closer relationships with SC21 - Supply Chain Improvement the ATI, the AGP, and the UK and European Programme in Northern Ireland aerospace clusters. The international trade Northern Ireland continues to make programme for 2020 will include visits to significant progress in the UK’s leading Aerospace & Defence Supplier supply chain improvement programme - Summit Seattle, Aircraft Interiors, Hamburg, SC21. Three Northern Ireland manufacturing Farnborough International Airshow and companies, IPC Mouldings, Denroy Plastics Aeromart . and Moyola Precision Engineering have achieved SC21 Gold Award status. This corresponds to 75 percent of all SC21 Gold manufacturing awards in the UK, being

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Scotland Institute for Scotland) with an SE investment of £8.9m. The last year has been one of growth for the aerospace industry in Scotland with a Ayrshire Growth Deal number of major investments and business opportunities being secured. Scottish  The UK and Scottish Governments Enterprise (SE) and partners continue to announced the £250m Ayrshire Growth explore the strategic opportunities within the Deal in March 2019which includes a sector and support industrial and academic major focus on the aerospace sector at players to engage with them. Prestwick and the ambition of Prestwick International Airport to become a UK Highlights: Spaceport for horizontal launch.

Spirit AeroSystems Aerospace Martin Aerospace and Rolls-Royce Innovation Centre  SME, Martin Aerospace (a SiG  SE has invested £4.8m with Spirit in a beneficiary) secured a £140,000 long new open access research centre into term relationship with Rolls-Royce in composite materials for aerospace and December 2019. other sectors.

Project Fresson and Loganair Castle Precision and Rolls-Royce  The £10m consortium for Project Fresson  Castle (a SiG beneficiary) and Rolls- announced in June 2019, the trial with Royce announced a new £80m contract Loganair in Scotland for the conversion to extending the scope and length of their electric propulsion of the island-hopping current relationship (see photo below). services using Scotland as a testbed for

the global market for this type of aircraft. Opening of Lightweight Manufacturing

Centre In the coming year it is anticipated that  SE and the University of Strathclyde several projects will be announced in announced the opening of the Lightweight Scotland, building on those listed here and Manufacturing Centre (LMC) (a further demonstrating the strength of the forerunner of the National Manufacturing sector in Scotland and the Scottish Government’s support of it.

Warren East, CEO Rolls-Royce & Yan Tiefenbrun, Managing Director Castle Precision 28 Aerospace Sector Deal: One Year On

Wales electronics, motors and drives for all modes of transport. The aerospace industry in Wales remains a cornerstone of UK civil aerospace sector. The Coleg Gwent Dennison Advanced past 12 months, since the launch of the Materials Centre (DAMC) Aerospace Sector Deal, has demonstrated a commitment to build on its R&T infrastructure,  In 2018, the Welsh Government invested crucial to future prosperity. in a state-of-the-art DAMC at the Blaenau Gwent Learning Zone. The Centre is one The following centres are examples of current of a limited number of further education capacity and capability building in Wales: colleges in the UK that can provide advanced composite training as part of its Advanced Manufacturing Research Aeronautical and Motorsport Engineering Centre (AMRC) Wales Courses.  Opened on 28 November 2019, the AMRC will offer cutting edge research Thales National Digital Exploitation providing game-changing support to Centre (NDEC) businesses and act as a catalyst for  The Welsh Government is working with industry and academic collaborations Thales to establish a £20m cyber centre, across multiple advanced manufacturing focused on critical national infrastructure, sectors. Airbus is the first major tenant which sits at the heart of the Tech Valleys and AMRC Wales is providing a platform programme. This will be the first of its to develop its next-generation wing kind in Wales. NDEC provides facilities technologies aligned to the Wing of for large, SME and microbusinesses to Tomorrow programme. test and develop their digital concepts. The official opening of the centre is planned for 24th February 2020, and subsequently, a new build will be completed in 2021.

The Welding Institute (TWI) Advanced Engineering and Materials Research Institute (AEMRI)  The AEMRI is a state-of-the-art engineering inspection and validation facility at TWI Wales in Port Talbot whose technical facilities are scheduled for completion in 2020. The facility will AMRC Cymru/Wales at Broughton support dynamic sectors including aerospace, automotive, electronics, and The Compound Semiconductor nuclear and renewable energy. Applications Catapult

 The Catapult is in the heart of the world’s University Wales Trinity St. David first compound semiconductor cluster, (UWTSD) Manufacture. Advanced Design. building on a £350m cluster investment Engineering (MADE) and moving into facilities in the centre of  MADE was launched in 2019 and is a the compound semiconductor district in suite of European Union funded projects Newport, South Wales. It has introduced delivered by UWTSD through its Centre 4 high-growth inward-investment for Advanced Batch Manufacture (CBM), companies to South Wales. It has led a tailor-made for Welsh SMEs and South West consortium of industrial individuals to plug into the power of partners for the Industrial Strategy disruptive technologies, in order to boost ‘Driving the Electric Revolution’ which will productivity. focus on the challenges around power

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Swansea University Institute for Cardiff University Artificial Intelligence, Innovative Materials, Processing and Robotics and Human Machine Systems Numerical Technologies (IMPACT) (IROHMS)  Swansea University is part of the UK  Cardiff University launched their £3.5m ARC and IMPACT is a state-of-the-art IROHMS Centre on 19 September 2019, research centre of excellence. The supported by £1.8m of European funding building was completed in May 2019 and through the Welsh Government. It is a its official opening will be held on 6th Centre for cutting-edge technologies, February 2020. This is a unique from robots and automated vehicles to colocation facility and will deliver a high virtual reality, artificial intelligence and impact, transformative research cyber-physical systems. environment for industry and academia to collaborate in advanced engineering and materials.

30 Aerospace Sector Deal: One Year On Priorities For The Future

The Aerospace Sector Deal was a shot in pull measures to drive uptake of new the arm for the UK aerospace sector by technology. Successful commercialisation of offering support to the sector to, accelerate large-scale demonstrators also has the autonomous and electric capabilities, potential to bring back whole aircraft through the Future Flight Challenge, development in the UK, driving economic continue driving productivity through SC21, prosperity across the country. and encouraging bottom up innovation from supply chain companies through NATEP, Alongside future technologies, industry and whilst driving diversity in the sector through government will also look to work together to the Women in Aviation & Aerospace explore solutions that can be scaled-up to Charter. reduce emissions in the nearer-term, including accelerating the uptake of Having established these programmes sustainable aviation fuels. successfully, we now have the opportunity to go further, and make the UK the most Equipping businesses to win by attractive aerospace location in the world. investing in Competitiveness This can only be achieved through Realising the success of investing in the government and industry continuing to work next generation of technologies and shaping together to make the UK industry a global future markets, relies on a competitive and leader, by delivering sustainability through capable UK supply chain that is positioned increasing investment in innovation, and to exploit these opportunities. continuing to improve our supply chain competitiveness. Programmes, such as SC21 C&G, NATEP and SiG, have been successful in equipping Delivering sustainability through small businesses in the supply chain to win increasing investment in new business by improving their capabilities and competitiveness. However, more needs Innovation to be done to equip UK businesses to win The aerospace sector in the UK is working against increasing global competition. with government to deliver net zero carbon Working with government, we will now emissions in UK aviation by 2050. This create a long-term, focused approach to provides an industrial opportunity for the UK developing a critical mass of innovative and to become a world-leader in sustainable competitive UK suppliers, essential to aerospace technology. address capability gaps in the supply chain Delivering this ambition requires us to and to create high performing businesses of recommit to the successful joint investment scale. We will also continue to identify model of the ATI. With further funding from strategic competencies worth developing in Government, thereby giving industry order to give the UK a leading competitive continued certainty, there would be renewed advantage. commitments from industry to invest in 3rd Aligned to this will be the pursuit of ‘High generation of technology. Value Design’, a process where the Digital Whilst sustaining core technologies, this will Engineering Environment will optimise allow industry to accelerate progress in product performance from inception to delivering 3rd generation technologies, disposal, enhancing manufacturability through stimulating the development of through transformation in engineering hybrid and electric flight demonstrators, productivity. Bold action by both industry and providing a basis for exploring alternative government is required to co-invest to propulsion systems, supporting air transport deliver High-Value Design through the system optimisation and enabling market “Brunel Challenge”.

31 Aerospace Sector Deal: One Year On

Delivering Future Skills Working with regional trade associations and local governments, the AGP will continue to Delivering new technologies and maintaining integrate the needs of SMEs in its skills activities competitiveness requires a sustainable pipeline whilst supporting the delivery of regional / local of talent with the right skills. skills programmes. Through the AGP, and by working in partnership Most importantly, the AGP will look to identify with education providers and sector partners and implement strategy for upskilling and such as the Engineering Development Trust reskilling of existing workforce informed by future (EDT) and the Royal Aeronautical engineering workforce requirements. Society, industry will increase its STEM outreach activities to attract a sustainable pipeline of Working with other sectors and the Department for Education, the AGP will explore flexible use of diverse talent into the aerospace industry. the apprentice levies, and will look to ensure In 2020, industry will also look to continue the cross-sectoral collaboration, particularly on Jon Dennison Bursary, set up in memory of Jon workforce upskilling with new technologies. Dennison to encourage the next generation of aerospace engineers by offering selected young people free places on EDT Headstart Courses, with a focus on young people from disadvantaged backgrounds. By working with the Institute for Apprenticeships and Technical Education and academia, the sector will continue to deliver new standards for apprenticeship starts in line with changing markets and technology.

32 Aerospace Sector Deal: One Year On

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