Northwest's Aerospace sector scales new heights

Aerospace businesses in the Northwest have soared to new heights thanks to the global expansion of air traffic, as well as ambitious military programmes.

Today, this region's aerospace is responsible for generating more than £3.7bn each year.

This figure is placed in context when considered that aerospace companies nationwide generate £7bn for the UK’s economy per annum.

Leading companies such as Rolls-Royce, BAE Systems and Airbus have major presences– and lead the way with some of the world’s biggest aerospace contracts.

These include: the A380 double-deck airliner; the Airbus 'family'; the Typhoon Eurofighter; and Joint Strike Fighter military aircraft programmes.

But the supply chain is just as important.

Ferranti Technologies, Bodycote, Aircelle, Hyde Group, Brookhouse and Morson International are just a few of the companies linked to the manufacturing process which are also based here.

Indeed, there are around 800 businesses in total working in the sector across the region employing more than 50,000 staff.

Dr Julie Madigan, chief executive of The Manufacturing Institute, said: "The aerospace industry is a fantastic success story for the region. It’s advanced manufacturing capabilities – and particularly its pioneering work in composite materials - stretches technological possibilities, which contributes greatly to the low carbon agenda."

"And it also boosts competitive advantage in other industries, such as Formula 1, which borrows much of its hi-tech know-how from the aerospace sector."

The success of the aerospace has resulted in the region being awarded one of the Government’s new 'Cluster Marks', which recognise business excellence in different sectors.

Building a world competitive supply chain

BAE, Rolls-Royce and Airbus handle some of the world's largest aerospace contracts – but there are hundreds of companies in that supply chain that are equally important in helping to generate wealth for the region.

For example, last summer BAE Systems chose four Northwest companies to work on a contract worth £250m over the next decade to help build the F-35 Joint Strike Fighter.

These companies were: Hyde Aero Products, based at Dukinfield in Greater Manchester; RLC Group, from Altham in Lancashire; John Huddleston Engineering, from Blackpool; as well as Preston-based Thyssenkrupp.

The companies work together to build the fuselage, vertical and horizontal tails and wing tips. All four attribute their success to being signed up to the Northwest Aerospace Alliance's (NWAA) £8m Aerospace Supply Chain Excellence (ASCE) programme.

The NWAA has around 350 members. Its ASCE programme was launched in 2006 to maximise the potential of aerospace companies bidding for contracts.

The second phase of ASCE was launched November 2009 following backing of £3.5m from the Northwest Regional Development Agency (NWDA) and £3.6m from the Northwest European Regional Development Fund (ERDF).

Investment

In 2010 it was announced that £5.3m was to be invested in a new Virtual Engineering Centre (VEC) - tailored to meet the needs of the aerospace sector - at Daresbury Laboratory, near Runcorn.

The venue is a public-private sector partnership, bringing together the University of Liverpool, the Science and Technology Facilities Council at Daresbury, BAE Systems, the Northwest Aerospace Alliance and its members as well as other prime contractors.

The VEC will specialise in creating a new generation of products using cutting-edge 'interactive simulation and modelling' software which can be used by companies to showcase their products.

Steven Broomhead, NWDA chief executive, said: "The region's aerospace sector is the largest in the UK, contributing almost £7bn per annum to the Northwest economy."

"In order to drive further growth, aerospace companies must continue to innovate and embrace new technologies to improve efficiency and remain globally competitive."

"Adopting virtual engineering technologies can create significant advantages for aerospace companies and the Virtual Engineering Centre will be a catalyst for a cultural shift to ensure that this important technology is exploited to its full potential across the industry."

Looking ahead

All the indications are that the future of the aerospace sector - internationally and regionally - looks good.

UK Trade and Investment (UKTI) believes aerospace will remain one of this country's highest value-adding manufacturing sectors.

A spokesman said: "The UK is home to Europe's largest aerospace industry and the second largest, after the USA, in the world. In 2008, the aerospace sector generated turnover of around £21bn and new orders of £35bn."

He added: "The aerospace sector is one of the UK’s largest exporting industries, with exports accounting for 69% of the sector's total sales in 2008.

"Priority markets - with the strongest opportunities for UK aerospace - now include China, India and Russia."

And while the sector has taken its fair share of the global pain, which has resulted from the recession, it has coped far better than was initially expected.

Many operating in the small business jet market - particularly serving North America and Europe - have witnessed a drop in sales as a result of corporations reigning in their orders to avoid accusations of 'corporate excess'.

But the military programmes and the large-scale passenger plane projects have resulted in the sector holding up comparatively well in the Northwest.

A piece of the world pie

Civil aviation projects are widely expected to grow as the travel market expands and there is also expected to be widespread innovation driven by environmental pressures.

Martin Wright, chief executive of the Northwest Aerospace Alliance, wrote in his winter bulletin: "The military workload looks strong and progressive growth in civil is expected as the Far East air travel market expands."

"Environmental challenges will drive technology development and we will progress the autonomous systems agenda to ensure the region plays its part in what will be a new supply chain."

"But the main challenges for this region in the future will lie in generating sufficient skills and ensuring the region maintains its share of what will be an increasing world market for aerospace products."