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 08 August 2007
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Aerospace Overview

The UK Aerospace Industry is a success story. Key strengths are:

  • One of the primary assets of high value-added manufacturing, generating turnover in the UK in excess of £22 billion in 2005.
  • One of the UK's largest exporters - over £15 billion of export sales in 2005, contributing £2.25 billion to the balance of trade.
  • Directly employs over 124,000 people, supporting a total of 276,000 jobs across the UK economy.
  • Highly-skilled workforce:
  • 34% of all employees have University degree or equivalent
  • average salaries £33,000 (43% higher than the UK average wage and about 32% higher than the average for manufacturing)
  • High investor in Research & Development: £2.7 billion in 2005. The BERR 2006 R&D Scoreboard showed that aerospace & defence growing R&D is the fastest out of the top 15 sectors (+13.5%).
  • Depth and breadth of capability - for example:
  • BAE Systems: UK's largest engineering company: advanced defence and aerospace systems (air, sea and land)
  • Wing technology. Airbus (owned by EADS): Centre of Excellence for Wing and Pylon (embracing wing design, manufacture, integration [e.g. landing systems], and wing assembly)
  • Propulsion. Rolls-Royce: world leading civil aerospace, defence aerospace, marine and energy propulsion systems.
  • Bombardier (Belfast).  Centre of excellence for fuselage and nacelle design and production
  • Landing Gear Systems.  Messier-Dowty.
  • Helicopters: AgustaWestland
  • National Composites Network (joint industry/Govt funded): a knowledge transfer network, which is developing a national strategy for promoting the composites sector in the UK and overseas. Aerospace company involvement includes Airbus and GKN.
  • Many more extremely capable Tier 1 and other suppliers of wide range of aircraft systems, equipment and services.

 

  • Strong support from Government (at all levels) e.g. Launch Investment (around £1 billion since 1997); R&D funding (£153 million for National Aerospace Technology Strategy projects between April 2004 and April 2007); R&D, tax credits (estimated around £60 million-£80 million p.a.); Selective Finance for Investment/Regional Selective Assistance (over £33 million in 2006); support for overseas sales campaigns.
  • Close working relations between Government (including RDAs/DAs) and industry through the Aerospace Innovation & Growth implementation agenda - overseen by a Leadership Council jointly chaired by Margaret Hodge (Minister for Industry & the Regions) and Mike Turner (CEO, BAE Systems):
  • Technology:  The Government is working closely with industry to deliver the National Aerospace Technology Strategy (NATS). The Government has committed around £153 million collaborative R&T funding to NATS projects since April 2004 (including an RDA/DA commitment of £45 million). For further details about the NATS see: http://www.sbac.co.uk/pages/41140383.asp
  • Process Excellence: SBAC Supply Chains for the 21st Century initiative (SC21) to improve better supply chain relationships; achieve better supply chain performance; and reduce auditing through recognition of supply chain accreditation.  For further details see: http://www.sbac.co.uk/pages/80338686.asp
  • Skills:
  • The sector is covered by the SEMTA (Science, Engineering and Manufacturing Technologies) Sector Skills Agreement (SSA).  The SSA is designed to ensure that 'the skills the sector needs are the skills the sector gets'. A key aim is, therefore, to exert significant influence in shaping the supply of relevant education and training provision, and to raise employer commitment to skills. The SSA is the key mechanism through which SEMTA will deliver the Skills for Business Network's (SfB) four strategic objectives of: increasing productivity, addressing skills gaps and shortages, providing greater and wider opportunities, and more responsive provision. The SEMTA SSA can be found out at: http://www.ssda.org.uk/ssda/pdf/050602%20D%20SEMTA%20Stage%205%20final%20SSA%20-%20England.pdf
  • National Skills Academy for Manufacturing: being developed to create training and education programmes which will set national standards for delivery and help employers to meet the demands of global competition in terms of improved productivity, the capacity to innovate and stronger leadership.  For further details see: http://www.manufacturing.nsacademy.co.uk/nmsa/nmsapublic.nsf/homepage?openform
  • Sustainable Aviation: A commitment by leading airlines, airports, aerospace manufacturers and the air traffic service to delivering radical improvements in carbon dioxide emissions, nitrogen oxide emissions and aircraft noise over the next 15 years. For further details see: http://www.sustainableaviation.co.uk/
  • Highly-capable trade association - the Society of British Aerospace Companies (SBAC) - which has close relations with UKTI and BERR (jointly supporting the AeIGT Leadership Council), and partnerships with regional aerospace trade associations.  For further details see: http://www.sbac.co.uk/
  • Farnborough International Air Show (operated by SBAC's wholly owned subsidiary FI Ltd).  One of the premier international air shows, bringing the global aerospace industry to the UK every other year. A valuable showcase for UK industry and the opportunities that exist for potential investors.  For further information see: http://www.farnborough.com/

For queries about the above, or the work of the Aerospace Team, contact Roger Bourne on 020 7215 1128.

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