Aerospace and Satellite Navigation in the Munich Region Image: Jupiter Images Collage: Word Wide Preface ■ The economic region of Munich is one for aerospace companies to be working ex- of the top business locations in Europe for clusively in aviation or astronautics, as most aviation, astronautics and satellite naviga- companies are actually involved in several tion, boasting 234 companies and 7 renow- lines of industry at the same time, espe- ned research institutes. With a turnover of cially in the automotive industry. Satellite 4.7 billion euros in 2006 and over 15,000 navigation companies are also quite diver- employees in industry and research, aero- sified. They are particularly interested in the space and satellite navigation make a ma- information and communication technology jor contribution to the economic power of (ICT) industry. Munich as a business location. Employees in these industries are highly qualified and Besides big system integrators such as EADS, specialized, 60 percent of the staff in ae- there are well-known suppliers to the aero- rospace and 83 percent of those in satellite space industry as well as to operations in navigation being university graduates. specialised engineering and machining tools Dr. Reinhard Dörfler at all tiers of the supply chain in the Munich Managing Director of the Chamber of Commerce and Industry for Munich and Upper Bavaria As a classic high-tech, research-intensive economic region. industry, aerospace is constantly providing other industries with significant technologi- The aerospace and satellite navigation cal impulses. Satellite navigation, while still companies in the Munich economic regi- young as a commercial industry, is emerging on truly live up to the reputation of their as a sunrise industry with the potential of field as being highly research-intensive: On becoming a key player in the coming years. average the aerospace companies invested 18.9 percent of their turnover in research These are the findings of the first study on and development. That puts them ahead the aerospace and satellite navigation clu- of the national average for the aerospace ster in the Munich economic region, com- industry, at 15.8 percent. And finally, there missioned by the Chamber of Commerce are the universities, universities of applied and Industry for Munich and Upper Bavaria science, the German Aerospace Center (DLR) and the Munich State Capital Department of and the Max Planck Institutes in Munich, all Employment and Economic Affairs in spring of whom conduct a broad range of research 2007. This study is the first to identify all and development in aviation, astronautics companies involved in aviation, astronau- and satellite navigation. Dr. Reinhard Wieczorek Councillor and Head of Department of Labour and Economic tics and satellite navigation as well as the Development of the City of Munich relevant scientific landscape and infrastruc- ture in the economic region of Munich. This includes the city of Munich and the coun- ties of Munich, Freising, Ebersberg, Erding, Starnberg, Landsberg on Lech, Fürstenfeld- bruck and Dachau. Dr. Reinhard Dörfler Of the 234 companies studied, 165 are in- volved in aviation and astronautics and 90 in satellite navigation. 21 companies are active in all three fields. In fact, it is rare Dr. Reinhard Wieczorek 3 | | 4 Contents Aerospace and Satellite Navigation in the Munich Region 03 Preface 06 The economic region of Munich in the context of aerospace and satellite navigation 08 Market environment 10 Companies in aviation, astronautics and satellite navigation 10 Overview 12 Business segments 13 Competencies 20 Turnover 21 Staff 23 Research and development 24 Regional distribution 25 Networking 29 Scientific institutions in aviation, astronautics and satellite navigation 29 Overview 34 Networking 35 Infrastructure and economic promotion 38 Assessment of Munich as a business location 39 Business outlook and trends 40 Appendix 5 | The economic region of Munich in the context of aerospace and satellite navigation ■ The aviation and astronautics industries gation is just starting out and has potential are constantly providing essential tech- to become a key industry in the very near nological impulses to other areas of the future. economy, not so much through their actual turnover, but because they are very research The German aerospace industry is very con- intensive and high-tech in character. The centrated in clearly delineated regions (fig. still young business area of satellite navi- 1), Bavaria on the one hand, and Hamburg/ Bremen on the other being the main centres. Two thirds of all employees in aerospace are evenly distributed between these two re- gions. They are followed at a great distance as far as staff and sales figures are con- cerned by two other major regions: Frank- furt and Berlin/Brandenburg. Satellite navigation is still a very young, emergent industry. Only a small number of preliminary surveys have been conducted so far, and they have focussed on individual subsectors such as traffic telematics. No at- tempt has yet been made to collate the field, providing a general overview of the industry as a whole. Quite apparently, however, sat- ellite navigation companies in Germany are most often to be found in conurbations that are IT strongholds. Munich, for instance, is the second-largest IT cluster in Europe after London, so it is not surprising to find a high | 6 Image: Jupiter Images Collage: Word Wide concentration of satellite navigation com- The companies in the region have an enor- Four universities, including the two desig- panies here. Other major satellite navigation mous range and depth of operational manu- nated as „elite universities“, LMU and TUM, regions should be expected to emerge in facturing expertise in all systems for aircraft as well as three renowned scientific research North Rhine-Westphalia, especially near the (both civil and military), satellites and mis- institutes dedicated to aerospace research Ruhr, in the Frankfurt region, in Hamburg, in siles, competencies which come into play provide the economic region of Munich with Berlin and in the Stuttgart area. at all tiers of the supply chain. In aviation, a great concentration of scientific research their main competencies lie in engines, on- operations, ranging from basic research in The Munich economic region is the central board electronics and avionics as well as natural science to concrete system develop- location in Bavaria for the aerospace and sat- air-launched weapon systems. As for astro- ment projects in co-operation with the in- ellite navigation industries. Major companies nautics, the region is strong in propulsion dustry. such as EADS, with its business divisions De- engineering as well as in the area of missile fence and Security Systems in Ottobrunn and components and experiments. Companies in In its quantitative evaluation, this study takes Unterschleißheim, Astrium in Ottobrunn and the region are in a league to build satellites into account only those business units actu- MTU Aero Engines in Munich, have the larg- through their expertise in system integration. ally based in the economic region of Munich est number of staff and turnover. Renowned In addition, the production companies can (Planning Region 14). However, outside this research institutes such as the German Aero- boast a wide range of experience in meas- immediate region but still within the Mu- space Center (DLR) in Oberpfaffenhofen give uring and testing technologies as well as in nich metropolitan area there are other major the business location further weight. Suppli- specialized mechanical engineering. A large companies and business units that are very ers and component producers such as AOA number of engineering companies in the re- closely linked economically to the Munich re- Gauting and RUAG, technical service suppliers gion in turn add their services to the supply gion, figuring as the suppliers and customers such as ESG, Atena, Garner and IABG as well chain. of companies located within the economic as a multitude of small and mid-size tech- region of Munich itself. Of special note, in nical suppliers and engineering companies Satellite navigation companies cover a broad particular, are units belonging to EADS: Eu- round off the industry’s profile in the Munich range of fields of application at all tiers of rocopter in Donauwörth (ca. 4,300 employ- economic region. the satellite technology supply chain. Key as- ees in helicopter production as well as in the pects are applications in the automotive production of Eurofighter and Airbus compo- industry, in logistics and in security. nents), the EADS plant in Augsburg (ca. 2,000 staff, including structure production for Air- bus), the EADS plant in Manching (some 1,500 staff, with work including the final assembly FIGURE 1 of the Eurofighter). Beyond these there are a Major regions for aviation, number of strong mid-size companies: Aero- astronautics and satellite na- tech Peissenberg (engine component produc- vigation tion with a staff of ca. 400), MT Aerospace in Augsburg (formerly MAN Technology; manu- facturing components and systems for car- rier rockets and satellites and orbit transfer systems with ca. 400 employees) as well as many small suppliers and engineering com- panies. In associated research, the Fraunhofer Institute for Building Physics in Holzkirchen conducts research regarding aircraft cabins. major aviation and astronautics regions potential regions for satellite navigation 7 | Market environment The aviation market Another important characteristic of the avia- tion market are international co-operations. ■ Civil aviation is the largest sector on the The development of new airliners and war- aerospace market today. According to the Ger- planes has become so complex and costly over man Aerospace Industries Association (BDLI), the past 50 years that companies cannot bear turnover in civil aviation in Germany in 2006 the cost alone. In Europe this has led, for ex- came to about 12.27 billion euros, compared ample, to the foundation of the European Aer- to ca. 5.77 billion euros in military aviation.