Small suppliers with unique IP have never found it straightforward working with global aerospace customers.

The potential

The contracts can be lucrative.

Clients can include government defence departments in the UK, the US and overseas; leading academic institutions and leading global defence companies.

The problem

Small aerospace companies have traditionally found it impossible even getting on the radar of the large suppliers.

Furthermore, the military aerospace industry is often regarded as a closed shop – an old boys' network difficult to access.

And, even when talks are underway the demands made by Original Equipment Manufacturers (OEMs) before production begins can be financially crippling.

The Solution is alliances

Entry to the network is vital for SMEs. The question is where do you start? Well the UK might hold the answer.

There are a number of collaborative networks in the UK that can help open the doors to SMEs seeking global contracts.

The benefits to forming an alliance

Alliances create new business. They also create critical mass and visibility.

They also engender a collaborative community where SMEs can share knowledge and form ventures of their own.

Mike Caffyn, the Aeroalliance UK Director of Operations sums up the benefits of joining a UK-based collaborative network:

"The SMEs are our innovative lifeblood, but this cuts no ice with global customers. Only a step change in the value proposition will catch their eye and such a change is almost impossible if they work in isolation.”

What's the attraction for buyers

While the concept of alliance is useful for SMEs what’s in it for the OEMs and prime customers?

For a start an alliance gives OEMs a single-point of access to dedicated project teams in flexible collaborative formations. These groups can then be tailored to specific client needs.

But even within the Alliance there are potential deals and ventures to be struck.

For example, associate members are engaged by the full members on a referred supplier basis to fill any capability gap to meet opportunities.

This builds a strong relationship between the members and associate members, leading to an even tighter supply chain for the prime OEMs.

The deal

One such example is a recent deal between BAE Systems Avionics and the Raven Alliance to deliver electronic support systems to BAE Systems.

“The SME companies of the Raven Alliance bring together a range of key technologies that will benefit our end customers,” explains BAE Systems Avionics Executive Vice President Marketing, Dr David Hughes.

North West alliances

One of many alliances is the North West Aerospace Alliance. They aim to forge collaborations, ‘where the whole is significantly greater than the sum of the parts,’ says its mission statement.

The North West England’s aerospace sector ideal for these sorts of alliances as it is recognised as one of Europe’s leading industrial clusters.

There are an estimated 1,000 companies associated with aerospace in the North West, employing over 50,000 people.

The region also boasts a large number of major players in the aerospace industry including BAE Systems and Rolls-Royce.

Southern alliances

There are also a number of successful alliances in the south of England.

The Aeroalliance is one of these. Their goal is ‘to become the Aerospace Industry's benchmark alliance of international SME [small to medium enterprise] business partners’.

The Farnborough Aerospace Consortium (FAC) provides a focus for over 700 aerospace related companies located in southern England.

Its members have become more competitive through improved marketing, share of best practice, and access to current research.

Another example is the Raven Alliance, a continuing success story demonstrating the potential and effectiveness of SME groups in the UK.

Supported by the South East England Development Agency (SEEDA) and Chemring Group Plc in its start up phase, the Raven Alliance has helped its members with several contracts providing significant additional revenue.