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How Can the UK Maintain Leadership in Aerospace Manufacturing?

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How Can the UK Maintain Leadership in Aerospace Manufacturing? How can the UK maintain leadership in Aerospace manufacturing? Raytheon UK Industry Debate and Parliamentary Reception Cranfield University Contents 3 Introduction 4 Peter Felstead 6 Raytheon UK report 8 Emma Reynolds MP 9 Dods research 11 Steve Baker MP 12 Dods research 14 Mark Tami MP 2 Introduction n 3rd December 2012, Raytheon UK, a culture of innovation, a vibrant research and O supported by Airbus UK and the Royal development base and an influx of new recruits, Aeronautical Society, hosted policy and industry who are inspired and enthused by the opportunities experts from across the Aerospace sector at the in Aerospace, the UK can continue to lead. Institute of Mechanical Engineers to discuss how Writing in this report, Emma Reynolds MP and the UK can maintain its position as a global leader Steve Baker MP set out their views on encouraging in Aerospace manufacturing. children to aspire to a career in aerospace This report not only contains research and engineering and retaining this talent within the case studies drawn from the panel discussions on sector, while Mark Tami MP argues the case for the day, but also a series of exclusive articles from greater investment in manufacturing technologies parliamentarians who offer their perspectives on to ensure the UK’s future global position. the challenges and opportunities for the UK in the race for excellence. We hope that you find the research and opinion During the day, delegates heard how with informative. 3 Race for aerospace Despite a challenging global picture the UK retains its position of ‘true excellence’ in the aerospace industry. And whilst government-industry partnerships are to be commended, the potential of military aerospace is being overlooked, reports Peter Felstead n 16 October 1908, when Samuel O Cody took off at Farnborough for the first powered flight in the UK, the seeds were sown for a British aerospace industry that by the time of the jet age was leading the world. Nostalgia, however, can be a misleading sentiment. From the post- Second World War glory years onwards, many an aviation enthusiast would point only to indications of decline. From the controversial cancellation in 1965 of the TSR.2 – a potentially world-beating strike aircraft – to more recent low points, such as the retirement of Concorde in 2003, the decommissioning of the Harrier jump jet fleet in 2010 and the scrapping of the Nimrod MRA.4 maritime patrol aircraft that same year – the latter before the type had even entered service – our proud aviation heritage may have appeared to some have lost its place in the world. “the UK retains a true excellence in aerospace in niche yet crucial areas” The reality is that today we live in a very different world to when Britain had its ‘empire of the clouds’ and that, although we have seen the last of some iconic aircraft, the UK retains a true excellence in aerospace in niche yet crucial areas. While the globalisation of the aerospace industry now means that few whole aircraft are actually assembled in the UK, this country remains a world leader in the design and manufacture Sowing the seeds of success: pioneer of of wings, engines and advanced aircraft manned flight, Samuel F Cody, seated in British Army Aeroplane No.1 during testing systems. 4 Computer image of an Ultra-High Capacity airliner designed by Cranfield University students: facing fierce global competition, the UK aerospace industry cannot sit on its laurels The UK aerospace industry, in fact, the launch document, “brings together the UK also still retains an excellence in remains the largest aerospace sector industry and government working military aerospace and that those ‘whole in Europe. It directly employs 105,000 together in a deep and joint dialogue to aircraft’ that are still produced in the people and in 2011 had a turnover of secure the future for UK aerospace. This UK – the Hawk Advanced Jet Trainer, £24.2bn – 75% of which was exported – is not about the government seeking to the Eurofighter Typhoon and the Lynx and new orders worth £28.3bn. impose a strategy on the sector; its goal Wildcat helicopter spring to mind – are Global competition, however, is is instead to work closely with business predominantly military platforms. intense. Recognising that UK aerospace to understand the opportunities, threats Investing in future world-beating could not sit on its laurels, government and barriers to growth that exist, and military aerospace technology is and industry have combined over to identify where government has a difficult: it’s expensive and these days the last year to launch the Aerospace legitimate role in helping to create long- will probably require multinational co- Growth Partnership (AGP) and its term sustainable value for the industry operation to be affordable in the first Reach for the Skies initiative, the key place. Military programmes also take purpose of which is to retain – and even “As government- a very long time to come to fruition; build upon – the UK’s 17% share of the industry partnerships hardly vote winners, they’re a long game global aerospace market. with strategic considerations at stake way Under the aegis of the AGP, much go, the AGP has much beyond the commercial ones. And yet, has already been achieved through the to be commended” just like the civil sector, investment in pooling of government and industry military aerospace can deliver growth, funding, including: a £100m investment and the wider UK economy.” market share and jobs, although market in a UK Aerodynamics Centre to provide Yet while the AGP says it will sectors such as unmanned combat air focus for technical excellence; the also “consider” dual-use technology, vehicle technology requirement R&D funding of 500 masters-level degree its focus is very much on civil – as investment today if they are to pay out in places in aerospace engineering opposed to military – aerospace decades to come. to head off any future shortage of initiatives. It is probably fair to say that, And so, while government and home-grown aerospace engineers; wherever issues of national security industry should both be congratulated on an £80m investment into a series of are raised, the potential to become their progress so far with the Aerospace new projects exploring low-emissions tied down in bureaucratic knots Growth Plan, it’s worth remembering that engine technology; and another £15m increases exponentially. Add to that first flight at Farnborough that started investment into 11 major business-led the contraction of Europe’s defence it all and, more crucially, the name of aerospace R&D projects. budgets and it is easy to see why an the aircraft that made it: British Army As government-industry partnerships initiative such as the AGP is best left Aeroplane No 1. go, the AGP has much to be to focus on the civil side of things if commended. It promises to be a truly meaningful results are to be achieved. symbiotic relationship that, according to It is worth mentioning, however, that Peter Felstead is Editor of IHS Jane’s Defence Weekly 5 Flight plan Special Report from Raytheon UK: How can the UK maintain leadership in aerospace manufacturing? ne of the key stated aims of the UK manufacturing sector that included: Bob ments required to support the UK’s goal O Government is to rebalance the Delorge, Chief Executive, Raytheon UK; to remain a globally competitive player economy away from financial services Simon Luxmoore, Chief Executive, Royal in aerospace manufacturing. However, and to drive growth through exports. Aeronautical Society; Tom Williams CBE, Simon Luxmoore, Chief Executive of the While Aerospace business is deemed as Executive Vice President Programmes, Royal Aeronautical Society, cautioned being essential to this, there has been a Airbus UK; Howard Wheeldon, former that “a world-leading aviation industry significant decline in the UK’s industrial Director of Policy and Public Affairs, has to be earned, by being not only capability in recent years in aerospace ADS; and Conservative MP for Wycombe world class, but by differentiation and by and also in defence. With this in mind, Steve Baker, who is also the Vice Chair of investing in partnerships.” how can the UK maintain leadership in the APPG. Luxmoore said: “This is a global Aerospace manufacturing? In the present business climate of marketplace in which we operate and, This challenging question was poised declining government defence spending whilst recognising the exceptional in an industry panel debate and Q&A and rising global competition, the capabilities of UK companies today, there session hosted by Raytheon UK at the debate enabled Raytheon to raise the is no ‘right of leadership’; the ability to Institute of Mechanical Engineers in profile of issues in the UK aerospace be world class will determine the future London on 3 December 2012. arena and discuss the challenges facing positioning of the UK in global aerospace Chaired by Emma Reynolds, Labour UK manufacturing in the current manufacturing.” MP for Wolverhampton North East and marketplace with industry colleagues. Chair of the recently re-established All Skills and Talent Party Parliamentary Group (APPG) on Technology Transfer & Diversification The requirement for skills in the aero- Aerospace, Raytheon’s 75 invited guests Bob Delorge kicked off the discussion by space sector in the coming years, and heard the views of a panel of speakers explaining how Raytheon UK benefits existing shortfall to those requirements, selected from Parliament and well from technology transfer and diversifica- was acknowledged by both politicians respected organisations in the aerospace tion through its US parent and leverag- and industrialists alike. Each welcomed ing existing regional infrastructure. He the many initiatives that are being pur- also pressed the importance of appren- sued by both camps to encourage indi- ticeships, STEM and Raytheon’s educa- viduals, particularly the young, to follow tional partnerships with universities in a career in the aerospace industry.
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