Partnership.

Transcription

1 AGP: Aerospace Growth Partnership

2 The UK Aerospace Sector INDEX Aerospace advanced a engineering, ee g, manufacturing actu and services employs 105,000 directly UK aerospace is number one in Europe and the largest aerospace industry outside the US Well-placed for further growth Turnover in billion & new orders worth 28.3 billion Highly competitive globally. 75% of industry revenues are exported The UK is a world leader in the manufacture of aircraft wings, engines and advanced aircraft systems

3 What is the AGP? INDEX STRUCTURE The AGP brings the UK aerospace industry and Government together to address barriers to growth, boost exports and grow the number of high-value jobs in the UK. Top level group is Aerospace Business Leaders (ABL) group chaired by Vince Cable; senior level business/bis representation. Identifies issues of strategic importance. Aerospace Growth Partnership (AGP) then responsible for addressing these issues. Chaired jointly chaired by Michael Fallon MP, Minister of State for Business and Enterprise, and Marcus Bryson, VP Aerospace at ADS. Involves wider business representation across the supply chain/senior BIS reps.

4 What is the AGP? INDEX VISION AGP Vision is to: Ensure UK remains Europe s No1/and No2 globally. Ambitious and challenging goal given intensifying competition & rapid pace of innovation. Support UK companies at all levels of supply chain to broaden and diversify global customer base. Critical given entry into market of new manufacturers of large civil aircraft.

5 What is the desired outcome? INDEX To jointly establish a Plan for the UK Aerospace sector: such that Government and Industry can co-invest and/or develop in specific areas of the sector in order to remove barriers to, and stimulate growth aimed at prioritised iti areas where the UK has the opportunity to be a global leader and win substantial market share by end 2012

6 AGP Structure AGP Steering Committee Strategy Technology Manufacturing Base Supply-chain External Engagement Competitiveness Protect & sustain the sector Build business case for Gov t & Industry working together Exploit future programmes Position the industry for future Single-Aisle opportunities Establish R&T plan to meet strategic goals Develop Demonstrator programmes Protect R&T infrastructure Review Implications for the manufacturing base Assess options for partnerships Review strengths, weaknesses Assess need for adaption and define outcomes Define processes to enhance access to finance, ECGD, investment, risk sharing and export Establish Aerospace s Environmental brand around the future all new a/c concept Develop engagement plan for sector Aerospace & Defence Sector Skills Group Developing and retaining the required skills base

7 AGP Working Group Chairmen Steering Group Marcus Bryson, GKN and VP ADS Strategy Graham Chisnall, ADS Technology Gavin Campbell, Bombardier Supply Chain Neil McManus, M Spirit i Manufacturing Mike Gregory, IfM Cambridge Engagement Jon Dennison, GKN ADSSG Mark Stewart Airbus UK

8 AGP Working Groups Involving 80+ Senior Executives from the UK Aerospace Sector Department for Business representation on all groups Supported by up to 8 full-time high calibre industry secondees plus ADS senior execs

9 Opportunity for short, medium and long term growth? INDEX Boeing 777 Refresh All-new Short Range programmes Irkut MS21 Embraer E-X Airbus A380 stretch A350 refresh COMAC C919 Bombardier C-Series Boeing 737 MAX Airbus A320neo

10 INDEX A Strategic Vision for UK Aerospace Launched by Vince Cable at FIA2012. Foreword by Prime Minister Sets out key findings from AGP so far and next steps, leading to final report at end of year to turn vision into a winning strategy Identifies opportunities and challenges that need to be addressed to secure short, medium and longer term growth. This led to development of PEP (Protect, Exploit, Position model) 10

11 Growth through h CAPAC CITY AGP Overall Strategy Identifying: Core UK capabilities and how we can make them more effective. Capabilities at risk and the measures that can be taken to protect them Grow skills and factories to absorb share in under-represented markets Increase supply chain competitiveness to win more market share PROTECT & SUSTAIN 0-5 years Identifying: Opportunities for the UK between now and 2025 and ensuring we work together to achieve maximum benefits for UK businesses Use these opportunities to help de-risk technologies and manufacturing processes Improve manufacturing systems to increase capacity, capability and competitiveness Deliver innovative technologies, developed through AGP process, to mid-term aircraft programmes EXPLOIT 5-15 years Growth through NEW PRODUCTS and CAPABILTIES Ensuring: Making sure that the UK is well placed to secure maximum economic return on future new platforms which may incorporate radical new technologies Take the lead with revolutionary new products such as Laminar flow architecture Open rotor engines Advanced systems Develop new manufacturing systems to ensure highvalue production remains in the UK POSITION 15+ years 11 11

12 AGP: Key High Level Findings UK can retain position #1 manufacturer in Europe (and #2 globally), if industry and Government work together to address barriers to growth. UK can differentiate itself from competing nations by developing product and process technologies now that, while focused on the high-technology innovation and skills required to deliver competitive, next generation products for future platforms, can also secure market share in the short and medium term. With an expanding range of aircraft and equipment manufacturers, UK aerospace industry needs to broaden its customer base across the global market. Companies will invest in creating jobs and capabilities in the UK if they see the Government is committed to maintaining the UK as an attractive environment for aerospace.

13 Strategy Working Group Maintain Position as #1 in Europe Increase UK global market share in engines Return to a 20% market share of wings on future Airbus programmes Maintain / develop centres of excellence for engines, wings & key systems as Number #1 in Europe and Number #2 Broaden the UK base across the global market: Worldwide partner of choice for wings, engines and key systems Secure access to worldwide markets Leverage private investment with HMG & EU investment

14 Technology Working Group KEY FINDINGS UK needs to consider levels of future investment (public and private) in R&T covering both product and manufacturing process technologies. A strategic, long-term partnership with HMG, providing consistency and certainty of R&T funding is crucial to future economic growth. Strategic R&T coordination, a harmonised approach to fundamental aerospace R&T and technology application, together th with targeted t investment required to help UK industry protect its lead position in Europe The UK must make bold and strategic decisions, harnessing disruptive design and environmental technology advances, in order to stay ahead of competition and ensure continued economic success Industry and Government must ramp up investment in derisking demonstrations of innovative new technologies that will lead towards all new and unconventional aircraft concepts

15 KEY FINDINGS Manufacturing Capability Important to ensure that aerospace companies are aware of opportunities that exist within new Catapult centres UK sector must invest in technical capability to enable it to compete on future programmes: includes Greater automation and flexibility (e.g. Composite v Metal) Business and information systems focus Need for Production Technology demonstrations AGP to identify where improved manufacturing processes and key enabling technology can be delivered; and where investment and collaboration needed.

16 Supply Chain Working Group KEY FINDINGS The SC must exploit future technologies. Being addressed by an AMSCI bid for a National Aerospace Technology Programme. The future SC must be competitive and correctly structured. Competitiveness being addressed by AMSCI bids for SC21+ programme, Production Technology support and a National Supply Chain Centre. The SC must exploit new export opportunities. Working with UKTI to identify and target programme opportunities and match with market ready suppliers. The SC needs access to affordable finance. Being addressed through an Industry Banking Forum.

17 Skills & External Engagement Shortage of UK resident senior technicians, graduate and post graduate level engineers with appropriate skills. Demographics of current workforce mean a significant number will retire in next 10 years Need for higher skilled apprenticeships leading to higher technological capabilities; and supply chain needs to improve its skills in management and operations. Aerospace & Defence Sector Skills Group (ADSSG; joint ADS and SEMTA Board) developing a skills strategy for AGP Need to raise awareness of Talent Retention Solution (TRS) Promote image of sector to make it more attractive careers choice e.g. See Inside Manufacturing, Futures Day at FIA12, UK Rocketry Challenge.

18 AGP Achievements so far Vince Cable announced a 200m package of Government and industry investment at the Farnborough Air Show in July, comprising: 100m of HMG/business investment in Aerodynamics, comprising 60m Government support towards a UK Aerodynamics Centre; & 40m contribution from industry. Joint HMG/business funding for 500 Masters level degree places in aerospace engineering, to be delivered over the next three years. BIS contributing up to 3m, matched by industry. 40m Government investment in a series of new projects into low emissions engine technology delivered through the TSB and lead by Rolls Royce, known as SILOET 2. Additional 40m coming from industry. 15m joint Government and industry investment awarded through the Technology Strategy Board for 11 major business-led aerospace R&D projects.

19 UK Centre for Aerodynamics Why needed? Aerodynamics assumes much greater importance on the future new programmes Current UK capability is fragmented and eroding, as are current investments and business models Need to rebuild UK leadership and competitiveness Representation at the top tables in Europe to maximise FP funding Way Forward Create world class UK Centre for Aerodynamics Pull together existing testing and modelling capabilities into coherent virtual centre, with small programme team and focussed package of research Focus on not only the science, but the exploitation ti into products through materials and structures, manufacturing, control systems, etc Encourage increased and focussed investment in key areas needed for competitiveness and growth

20 AGP Achievements so far Supply Chain Measures AGP Supply Chain Working Group has three bids in BIS AMSCI fund 28m to boost SC21 (SC21+) and develop production technologies in the supply chain. 23m project to support the exploitation of technology in the supply chain. 25m project to establish a National Aerospace Supply Chain Centre

21 Other HMG funding ahead of FIA12 BIS investment of 32m in AgustaWestland to help it diversify into the civil market through the AW169 civil helicopter in Yeovil BIS investment of 40m in a series of manufacturing process projects, under the heading of a programme called SAMULET2 to be led by Rolls-Royce; with 40m matched by business But not all about money: Lots of AGP work is, for example, about how business engages with government; and how business engages with itself across supply chains which is having a positive effect. (eg. SC Finance Forum, UK sector seen to be working together )

22 Summary INDEX Significant level of engagement between business and government; and between aerospace businesses across supply chain Good progress and achievements to date. Plan of work, set out in Vision document, to lead to full report by year end Aerospace recognised as a winning sector making an important contribution to the growth agenda. Broad agreement on strategy. Commitment to work together for the long-term support of the sector

23 Some quotes on AGP from HMG INDEX We as a government are doing everything possible to get behind UK aerospace. From this Government you will see nothing less than an unstinting, unrelenting, unflagging commitment to making Britain the best place in the world for aerospace businesses to invest, design, manufacture and export. Prime Minister, David Cameron The UK aerospace industry is a big success story. We have the top aerospace industry in Europe and we are lead supplier to the world s aerospace market. We intend to keep it that way the Government has embarked on a strategic partnership p with business to deliver growth in aerospace & I look forward to us achieving that Secretary of State for Business, Vince Cable The UK has an aerospace sector of which we can be justly proud, but we can t afford to be complacent. That is why we created the growth partnership... I certainly ypledge to do what I can to support it. Minister for Business & Enterprise, Michael Fallon

24 Some quotes on AGP from Business INDEX The AGP is a true partnership, p, with the best talent in industry and government working together to plot the way ahead Now is the right time for us to be devoting our collective efforts to what is one of our greatest industrial assets the aerospace sector Marcus Bryson, CEO GKN Aerospace & ADS VP Civil Aerospace Through AGP, Airbus is fully aligned with the Government in our goal to ensure the UK aerospace sector delivers sustainable growth and remains one of the largest and most competitive in the world Tom Williams, Executive VP Programmes Airbus The excellent skills and capabilities of the UK aerospace industry combined with a strong partnership with Government continue to make the UK an attractive investment proposition. Neil McManus, VP and MD Spirit AeroSystems (Europe) Ltd The AGP is an initiative that we in EADS whole-heartedly support. It has brought the industry together and strengthened its relationship with Government. Robin Southwell, CEO of EADS UK

25 Further Information: INDEX Websites: org For copies of Reach for the Skies and further information contact:

26 Thank You