The Society of British Aerospace Companies (SBAC) has today (Wednesday) published its civil aerospace strategy report, examining how the UK industry can remain at the forefront of the highly competitive global industry. The strategy covers the next twenty years’ of developments in the sector.
The report outlines that the major challenge for the £20 billion per year UK aerospace sector as a whole is to maintain its existing scale and scope through the capture of substantial advanced design and manufacturing shares of the key emerging programmes, such as in the new single-aisle replacement, whilst positioning itself to exploit the new growth opportunities (in areas such as helicopters and unmanned aerial systems) and shifting trends in a competitive global market.
Ian Godden, SBAC Chief Executive, said:
“The British aerospace industry is a high-value manufacturing and engineering success story. It currently enjoys a 17 per cent global market share thanks to historically excellent public and private sector investment. To sustain our future contribution to a balanced British economy further action is now required from industry and the Government in partnership. With the global market for the new single aisle replacement for the Airbus A320 and Boeing 737 alone worth an estimate US$1 trillion over the next twenty years, with the total market at over US$2.6 trillion, this is an opportunity that the UK literally cannot afford to miss.”
Bruno Esposito, SBAC Director of Civil Air Transport, said:
“Britain contributes a great deal to the global aerospace industry thanks to the skills of its workforce across all the sector’s companies, the key role we play in the major aircraft programmes and our innovative small and medium-sized enterprises. We are currently responsible for around a third of the Airbus A380 and over a quarter of the Boeing 787. The UK is also the world-leader in wing manufacture and hosts a world-class engine maker alongside major sectors of other global firms. Future aircraft programmes will deliver major economic benefits to the country as well as low-carbon transport technologies and we look to the Government to lend its support to the industry.
“For example, the Airbus A350 XWB is an extremely important product for the future of the UK aerospace industry. With over 5,000 jobs created or safeguarded within the industry as a whole and the significant technological advances of the composite materials being used, its importance for the future sustainability of the UK aerospace industry cannot be exaggerated.”
The strategy also sets out that:
- UK aerospace is a successful, high-value, high technology engineering, manufacturing and service industry generating good returns to its stakeholders. With over £20 billion per annum in value added revenue and employing over 113,000 directly, and a further 350,000 indirectly, the industry is one of the UK’s largest exporters adding around £2.8bn annually to the UK balance of trade. It has proved its resilience through numerous economic cycles.
- Major challenges could threaten this future success such as the two-way pull on the sector of “dollar-isation” and the emergence of high growth strategic markets in the Middle and Far East and India, coupled with the growth of state-sponsored start-up enterprises specifically aimed at competing with the current prime and tier 1 companies.
- Significant extra investments are required from industry and the Government if the UK aerospace sector is to keep its current leadership position and exploit emerging growth areas. National control of critical intellectual property is also vital to maintain manufacturing investment and jobs within the UK.
- There is an urgent need for the UK to adopt a leadership role in the development of the future air traffic management systems and associated operational procedures. These are fundamental to the industry’s ability to meet agreed environmental targets while increasing airspace capacity to enable the projected traffic growth and this will also drive the need for greater integration across the aviation and space sectors.
The report makes the following further recommendations that:
- The critical role of nationally controlled intellectual property be recognised.
- Leadership of environmental related technologies be adopted as a prime aim of the research and technology (R&T) agenda.
- The Government ensures that UK industry has full, open access to the new programmes in emerging markets of China, India, Japan and Russia.
- The macro-economic environment encourages investment in R&T and capital; and it be recognised as vital that the UK based airlines be early adopters of new aircraft with latest technologies. In so doing, this will assist with keeping these airlines competitive and innovative whilst ensuring a fast-track commercial roll out of new technologies needed to achieve environmental targets. This would also draw aircraft manufacturers to invest further in the UK to secure and capture market share.
- Further commitment to deliver a highly-skilled workforce be made.
- Joint action be taken to ensure the UK aerospace industry achieves a much greater integration across the aviation and space sectors.
The Society of British Aerospace Companies (SBAC) is the UK’s national trade association representing companies supplying civil air transport, defence, security and space. SBAC encompasses the British Aviation Group. Together with its regional partners, SBAC represents over 2,600 companies, assisting them in developing new business globally, facilitating innovation and competitiveness and providing regulatory services in technical standards and accreditation.
