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Advancing UK aerospace defence and security industries
The UK is Europe’s leader in the high-technology manufacturing and services sectors represented by A|D|S. Together they employ over half a million people in 9,000 companies and contribute over £60 billion (US$90 billion) per year to the British economy.
The Farnborough International Airshow, itself a worldleading event, is an opportunity to showcase these best of British qualities to the world, alongside our global partners that we welcome to the UK year-on-year. All of us at A|D|S and FIL look forward to greeting the world’s aerospace, defence, security and space industries at the 2010 Airshow and beyond.
A|D|S is the trade organisation advancing UK Aerospace, Defence, Space and Security industries. Farnborough International Limited (FIL), which runs the Airshow, is a wholly-owned subsidiary. A|D|S has offices in England, Scotland, Northern Ireland, France and India with new offices planned in China and the Middle East. We are the national organisation representing the huge number of successful SMEs in these sectors.
A|D|S was formed from the merger of the Association of Police and Public Security Suppliers (APPSS), the Defence Manufacturers Association (DMA) and the Society of British Aerospace Companies (SBAC) in October 2009. A|D|S also encompasses the British Aviation Group (BAG).
Small and medium sized enterprises (SMEs) are the backbone of the UK’s high value manufacturing and services industries in aerospace, defence, security and space. At least 9,000 companies make up these highly diverse skilled engineering and support sectors. Every single large aerospace or defence equipment contract is underpinned by the hard work of hundreds of SMEs.
The UK defence industry alone has more SMEs than the French, German, Italian, Spanish and Norwegian industries combined. This enables UK SMEs to respond to the needs of the Armed Forces as a priority, speeding up the deployment of life saving battlefield capabilities.
For the nation to succeed it needs both the presence and investment of large international winners and a highly competitive SME supply base that has technological and manufacturing excellence to provide innovation and agility.
Aerospace is an attractive growth sector in which the UK can continue its winning ways. The UK is number one in Europe and number two in the world behind only the US in a market growing at twice the rate of GDP. It employs over 100,000 people and generates £20 billion per year to the UK economy. The UK also has vibrant academic institutions that underpin our knowledge and skills.
The UK has set its sights on:
- Playing a major role in the design and manufacture of the new short range aircraft in 2020-2025
- Continuing to be a world leading technological centre in the design and manufacture of aero engines and wings
- Retaining its aerodynamic skill base in both fixed wing aircraft and rotorcraft
- Investing in commercial Unmanned Aerial Systems (UAS) and pioneering their use by society
- Investing in the next generation of lightweight materials and their application in this industry.
Sustainable Aviation (www.sustainableaviation.co.uk) is a comprehensive strategy for the long-term sustainability of the UK aviation industry. This pioneering initiative brings together the UK’s leading airlines, airports, aerospace manufacturers and the air navigation service provider. Signatories to the strategy are committed to delivering significant reductions in emissions of carbon dioxide, oxides of nitrogen and aircraft noise.
The ‘CO2 Roadmap’ (http://tinyurl.com/saco2) developed by Sustainable Aviation is the industry’s assessment of how it can continue to grow whilst limiting its impact on climate change such that emissions of CO2 from UK aviation can be reduced to 2000 levels by 2050 – even with a forecast trebling in passenger growth.
The UK security industry comprises 8,000 companies and ‘UK Security’ employs around 600,000 people. The innovation and high-technology products and services that the sector produces deliver security to the UK population and bring rising economic benefits through the successful export of our world-leading equipment overseas.
Security is the hidden hand that keeps us safe. Innovative UK-based security companies provide the capability for UK Government departments to deliver for the whole British population as well as for their counterparts overseas to do the same for their countries. An example of our excellence in overseas markets is that UK companies supply over 60 per cent of airport security systems to the US Government’s Transport Security Administration. Figures issued recently by UKTI DSO suggest that despite the recession the UK security industry’s exports were valued at £1.36 billion last year and that this was an increase of more than 14 per cent on previous years. Our challenge is to increase the UK’s role in these global markets, starting from its already creditable 6 per cent global market share and promoting our capability to global customers.
The space sector in the UK grew 9 per cent per annum between 1999 and 2007 and it is likely to grow from £6bn in 2008 to £40bn by 2030. In 2007, space generated £5.9bn of revenues in the UK and the sector supports around 70,000 jobs.
It is no exaggeration to say that without space infrastructure much of our global economy would now cease to operate. In fact without space hardware such as satellites the world would lose much of the growth it has experienced over the last 50 years. Space is an essential engine of the economy and our dependence on its infrastructure will continue to grow. With eyes firmly on the future, the UK space industry is aiming to increase its share of the global market to at least 10 per cent from a current level of 6 per cent.
The UK is entering a major growth period for space. The UK Space Innovation and Growth Strategy sets out how the UK is planning to raise its game. UK space companies have built up leading capabilities in key export markets, including broadband, monitoring deforestation and geo-data. The UK is now the leading exporter of satellite-based tools to the developing world. Britain’s technology lead in satellite radar, space software, small satellites and military communications represent huge export opportunities.
The UK defence industry represents 10 per cent of UK manufacturing, is number one in Europe and second only to the US globally, employing over 300,000 people and generating over £35 billion per year to the UK economy. The industry also works hand-in-hand with the UK Armed Forces from factory to frontline, for example over 4,000 industry personnel are currently working with our troops in Afghanistan.
Each year defence exports provide on average £5bn to the UK economy and it is the largest overseas supplier of defence equipment to the United States. The demand from overseas for British-made equipment – from fast jets to helicopters and electronic systems to personal kit for individual troops – is high because of its quality and provenance. Its use by UK forces in recent campaigns also provides confidence to export customers. Defence exports offer the UK a route out of recession and excellent returns on initial investment.
The UK has had a 21 per cent share of the defence export market in the last five years and defence exports support 65,000 UK jobs. Defence in the UK is responsible for 40 per cent of defence R&D in Europe and contributed £12bn in value added to the UK economy in 2008 – up 15 per cent since 2006. The defence industry in the UK submitted more than twice the number of patents applications compared to the pharmaceutical sector between 2007-10.
The major challenges for the industry are:
- To work closely with the government on the Strategic Defence Review
- To assist with the reform of the procurement process
- To encourage the reversal of a decline in research and technology spending
- To increase the exportability of UK equipment and services.
Farnborough International Airshow
Farnborough International Ltd (www.farnborough.com) is a subsidiary company of A|D|S. FIL has a three-strand business as the organiser of the biennial Farnborough International Airshow (FIA), operator of Farnborough International Venue and Events (FIVE), and as international consultants for civil, defence and business aviation events including Bahrain International Airshow 2010 (BIAS) and India Aviation 2010.
The Farnborough International Airshow (FIA) is one of the world’s most iconic global aviation events. The most recent airshow, FIA 2008, was a record-breaking year for business with US$88.7 billion worth of orders announced during the show. 2008’s event also featured 165 aircraft in static displays and spectacular flying displays with the public weekend attracting a staggering 153,000 visitors.