UK aerospace capability

Wing Assembly

Few countries have the capability to design, test, integrate and manufacture complex aircraft wings. The UK is one such country.

Wing technology and capabilities are not simply about allowing an aircraft to fly. Today, they are the key to deciding how large an aircraft can be, what the optimum operating range should be and cost-per-flight hour issues.

On advanced programmes – such as the in-production Airbus A380 and the next generation Airbus A350 – knowledge about the dynamics of wings allowed significant operating cost savings to be made. Without this degree of understanding and capability, programmes will not succeed.

UK excellence in Europe

Since the 1970s, the UK has been home to the centre of excellence of wing production for the Airbus consortium. This was as a result of the heritage that the UK possessed in wing technology that stretched back to the earliest days of flight. It was this background that made it the logical place to set up such a centre of excellence. The capabilities presently based in the UK are not replicated anywhere in Europe, and at only a handful of other facilities in the world.

This means that each and every wing of all of the 4,300 Airbus aircraft which have been delivered have the hallmark of the engineering pedigree of the UK stamped on them.

The creation of a wing centre of excellence has allowed longer-term investments to be made in support of this industrial effort. Airbus has been one of the most active investors in the aerospace industry in the UK. It spends hundreds of millions of pounds sourcing materials, as well as the development of core future technologies. These investments have also been backed by the UK Government to further the sustainment of wing capabilities in the UK, as well as future expansion in this field. The process has become a virtuous circle as the initial investments in wing technologies attract more companies with similar interests to the UK.

The creation of a single, group-wide wing centre of excellence has allowed investments in one technology area to be transferred, as appropriate, to another. Thus for the next generation operational-level military airlifter, the A400M, the wing is at the cutting edge for use of composites – a world first – for an aircraft of this type. At over 42m in length, it is also setting records for size of composite aerospace structure. The demands on such a wing are immense, as it has to be able to withstand rough field landings, where objects can cause damage if the wing has not been correctly designed and built.

This breakthrough is being taken into the commercial field. The experience of design and manufacture on the A400M is being brought to play on the next generation A350 passenger aircraft. This will also have an advanced composite design in all areas – a move away from the norms in this area, and a first for an Airbus aircraft. The large A350 wing will be the largest composite wing anywhere in the world, and it is likely that future growth of the aircraft will see the wing growing too.

Master of all

It shouldn’t be thought that, as a centre of excellence, the UK’s wing capabilities simply focus on the basic structure. The process of designing and building aircraft has become more sophisticated, and, as such, mastering wing technologies has also become more complicated. The work now involves the physical integration of such major sub-systems as undercarriages, fuel systems and wing-mounted electronics into the basic wing structure. The process requires detailed knowledge of these sub-systems in order that they can be seamlessly integrated into the overall wing, to ensure that the whole product functions perfectly.

The creation of a single, group-wide wing centre of excellence has allowed investments in one transferred, as appropriate, to another.

This has meant that as a result of the Airbus wing centre of excellence being based in the UK, the UK aerospace supplier chain has also grown in this area. There are numerous UK companies that provide vital sub-systems for wings.

These can be as simple as metal or composite items for wing structures, or they can be larger and vital structural items – the composite spar for the A400M operational-level military transport, as a major example. Additionally, they can be advanced hydraulic equipment items for such things as flap systems, as well as engine mounting systems.

These skills are not limited to Airbus aircraft. UK suppliers of wing sub-systems and sub-assemblies have been able to win business on other European aerospace programmes for such items as commuter aircraft, as well as on platforms from Canada, Brazil and the large US aerospace programmes.

Aero Power

If the wing is one vital technology that allows flight, so aero power is another. Just as the UK is a world leader in wing technology, so it is also a leader in this crucial area.

The UK aerospace industry is at the cutting-edge of aerospace power at all levels, from the largest, complete new generation engines, right down to the provision of the smallest precision components, and from project definition through to support and maintenance. In short provides a world-renowned “one-stop shop” for all aspects of aero power. The UK, led by Rolls-Royce, has the strongest position outside of the USA, and its share of the market is over 35 per cent, worth over £5 billion (US$9 billion). This position has been strengthened over the past few years, despite adverse cycles in the aerospace business world.

Airlines have been quick to buy UK aero engines – over 500 commercial airlines operate UK-made engines, and today more than 11,000 are in service worldwide. The capabilities of UK aero power plants are shown time and again, meeting ever-more demanding cycle rates, but with higher reliability and lower operating and ownership costs. UK-built products power aircraft ranging from small commuter aircraft models, through the growing business jet market, right up to the largest intercontinental aircraft.

Power for all

The capabilities of the UK in aerospace power are well demonstrated by the fact that for key new aircraft programmes - such as the A380 and 7E7 Dreamliner - the world’s leading aircraft manufacturers have selected UK-built Rolls-Royce engines as their first certificated power plants. UK suppliers of aero power sub-systems and components have been selected to supply crucial elements on other engine programmes. The UK’s position at the leading edge of new aircraft programmes results from the reliability, precision and affordability of its power train products.

It is not just in the commercial sector that the UK has cutting-edge capabilities in aero engines. UK-built engines power fixed-wing combat and trainer aircraft across the world, including models designed outside the UK. The same is true of helicopters, where the aircraft of European and Asian militaries are powered by UK engines. The Rolls-Royce – led RTM 322, for example, is the main engine for the European NH90 helicopter.

UK companies have won key positions as sub-systems suppliers on overseas engine programmes, most notably on advanced programmes in the United States – all won against fierce competition. UK firms, for example, are major suppliers for the Joint Strike Fighter engine programmes. The position of UK companies on military power also runs right through the entire supply chain, from the smallest precision components, to large structures, such as gearboxes and propellers.

UK aerospace firms cover each and every aspect of the total aero power train – not just for UK-designed and built engines, but for models from across the world.

Strength in depth

The strength of the UK’s aero power industry is in its depth. To make a complete engine for any type of aircraft, there are a host of different elements that all require the highest technology to deliver the final result. At the heart of the engine is the hot temperature and high-pressure areas where the power process starts. These areas require precision castings to cope with the demanding environment, and reliability is key.

Engines also need structure to allow them to hold together. These can include: the actual lining of the engine – another area where high technical demands have to be balanced with weight and reliability, as well as cost; the nacelle in which an engine is mounted, where strength also has to be balanced with weight and safety concerns; and the pylon on which the finished engine/nacelle hangs. Each is a critical element of any aero power train. Engines also rely on a host of ancillary systems for efficient and effective operation. There are gearboxes to convert the energy of the engine into power; lubrication systems to keep engines operating at the optimum rate, with minimum costly wear and tear; the thrust reversers, crucial to the safe landing and arresting of an aircraft; and there are the engine control systems, increasingly important in managing the fuel burn, at a time when fuel costs are a growing expense for airlines and other air operators.

UK aerospace firms cover each and every aspect of the total aero power train – not just for UK-designed and built engines, but for models from across the world. This position is not simply a heritage, but is a growing and core capability.

At a time when other countries have been exiting the aero power market as a result of the fierce competition, the UK has not just maintained its position, but has strengthened it. The UK’s capabilities in aerospace power allow it to be a supplier, provider and partner of choice in the world, both today and tomorrow.

Aircraft Systems

With a long history of being at the forefront of aviation technology, UK companies are top competitors in every niche of the aircraft industry.

Expertise abounds in areas from avionics to airframes – and components of all types. Excluding engines, normally treated separately, aircraft equipment items make up from between almost a quarter of all UK aerospace business to as much as three-quarters, depending upon the year. In value, this ranges from more than £4 billion in turnover a year to more than £11 billion. It is a strong sign of the capability and competitiveness of the UK aerospace industry in the systems arena.

Aircraft systems encompass a wide range of areas that include the following:

• Actuation – electric or hydraulic motors that open or close hatches and doors, or drive the control surfaces on wings.

• Airframe Equipment – ranging from wiring and aircraft structures through to the systems for fitting out passenger aircraft.

• Avionics – electronics that monitor and display aircrafts’ activities.

• Computer Systems & Software – the backing for more and more aircraft operations today, and tomorrow.

• Ejection Seats – some of the first-ever ejection seats were designed and built in the UK. Over 7,000 lives have been saved by UK-made Martin Baker ejection seats.

• Environmental Control & Life Support – systems to control temperature and pressure inside aircraft, or in aircraft sub-systems.

• Flight Systems – the cockpit and wing systems that actually control flight.

• Fuel Systems – pumps and monitoring equipment to control the safe and efficient passage of fuel in aircraft.

• Ground Support Equipment – systems to handle and replenish aircraft while on the ground. Communications Equipment.

• Landing Gear.

In all of the above areas, the UK is an internationally recognised leader. For instance, in the case of landing gear, the country boasts several manufacturers. One of them – the UK arm of the international combine Messier-Dowty – has made landing gear since its founder Sir George Dowty developed the internally sprung wheel in the 1930s.

Today, the UK part of the company has nearly 1,000 people that research, develop and manufacture landing gear. The company produces equipment not just for much of the Airbus range of passenger aircraft, but also for the Fokker commuter aircraft. It also makes Boeing aircraft landing gear for military aircraft, including the Eurofighter Typhoon and the BAE Systems/Boeing Harrier/AV-8B.

Another world-leading manufacturer of aerospace systems is Martin-Baker, which makes ejection seats for military aircraft. The company makes seats for aircraft such as the Eurofighter Typhoon, Saab Gripen, Boeing F/A-18 Hornet and Super Hornet, and Lockheed Martin F-35 Joint Strike Fighter. To date, over 70,000 UK-built ejection seats have been fitted to aircraft worldwide.

Small but big

There are many other areas of aerospace industrial dominance that are lesser known, simply because they tend to be parts of other, larger things. For instance, an aircraft’s wing contains systems such as electronic or hydraulic actuators; advanced flap control switches; conduit systems to protect aircraft wiring in harsh environments; wing anti-icing systems; and sensors for monitoring such things as airframe fatigue, fuel supply systems and communications antennae. All of those sub-systems and sub-assemblies are areas where the UK has cutting-edge capabilities, fitted in many different aircraft – civil and military – worldwide.

UK companies also have renowned expertise in aircraft crew and passenger compartments. These include such leading technologies as active noise and vibration control to quieten the roar of turboprop or turbine engines in passenger cabins. For cockpits, UK companies can provide the full range of controls, displays, communications equipment, avionics and associated technologies.

The UK is also an undisputed leader in aircraft assemblies. This encompasses the design and build of the sections that are then assembled to make up an aircraft, such as the fuselage, tail surfaces and wing elements. The UK’s eminence in this area comes from the industry’s long history and the benefits derived from a strong research base.

Taking aircraft systems and airframe assemblies together – the two areas are often counted together as they are difficult to break out – the sector is worth 69 per cent of the UK industry’s £18 billion turnover.

A key partner

The UK’s expertise and skill in aircraft systems has given its companies a significant presence in both Airbus and Boeing aircraft. Similarly, UK firms play a key role in military aircraft programmes, supplying many components to European, US and Asian aerospace companies. For any country or company interested in aviation, the UK should be considered a key partner in aircraft systems.

Composites

Supporting the UK’s cutting-edge aerospace industry are some of the world’s most technologically sophisticated composites manufacturers. The UK is a world leader in both high-quality composite manufacturing and research.

UK companies have been involved in making composites for many decades. This legacy means that today there are over 1,000 firms in the UK directly involved with manufacturing composites or precursors for advanced composite materials.

The UK aerospace composite industry benefits from a combination of heavy commercial aircraft manufacturing, large military aircraft orders and a sizable research establishment dedicated to supporting both civil and military aircraft development and manufacture. This is supported by highly skilled workers that are the product of the UK’s long tradition of aircraft making. Advanced technology, high demand and a large, established industry with skilled workers makes the UK an outstanding country for finding suppliers of high-quality composites.

The use of composite materials in aerospace has seen rapid advances over a short space of time. While passenger aircraft in the 1970s might have had 1-2 per cent of their structure made up of composites, today the figure is closer to 10-15 per cent. The next generation of aircraft will see composite material usage rise to more than 30 per cent of the total structure. The driver has been the need to reduce weight, in order to make operational cost savings.

Where composite technology is vital in aerospace, so UK companies have been at the cutting edge and much in demand.

For advanced aerospace composite materials, the UK is simply second to none.

It is well known that the UK is the home of Airbus wing production. The UK’s capabilities in composites are clearly demonstrated by the fact that the wings for the next generation Airbus A350 passenger aircraft will be entirely made of composites, delivering significant improvements in production and operations. It is less well known, however, that the UK has a large number of high-quality composite makers – both large and small – producing components for a variety of aircraft. These include all of the Airbus aircraft, such as the A319, A340 and A380, as well as for Boeing models such as the 777 and 787. The UK also designs and provides composite materials for smaller commercial aircraft, such as business jets, as well as for helicopters and space applications.

Composite powerhouse

While the UK’s composite industry encounters stiff competition from other countries, it is still a recognised powerhouse when it comes to high-quality aerospace composites. Three times more of the UK’s composite material output goes to demanding aerospace applications than any other European producer, some 20 per cent of total production. Looking at wider industrial applications of composite materials, 34 per cent of the UK’s output is for advanced industrial applications. Both areas are seeing growing demand and are significant indicators of the quality, industry and performance of the UK’s composite material capability. Focusing on aerospace and other advanced composites allows it to maximise its advantages in technology and investment capital in a tough market. As a result, the UK has seen a trend towards higher sophistication and automation in composites in such processes as pultrusion, injection moulding and filament winding.

The UK’s strength in high-end composites of all types stems from several factors. Chief among those is the strong materials research base in the

UK, which has led to breakthroughs in many areas of composites, as well as other aerospace materials such as titanium, nanocomposites, foamed aluminium and ultra-high-strength steels. Industry and government have formed a National Composites Network (NCN), which acts as a knowledge network for the industry. Regional centres of excellence, whether based in industry or academia, promote and develop composite technology and knowledge, and the NCN identifies how the UK’s composite expertise can be grown. Backing from the Department of Trade & Industry allows for a strategic view to be taken of this business area.

An indicator of the quality of UK aerospace composite materials comes from the area of defence aerospace. UK companies are key suppliers of advanced composite materials to the US-led multinational Joint Strike Fighter (JSF) programme. Those parts are not only required to have extremely high strength and stiffness, but their geometry must be exact to within a few 1/1000ths of an inch to maintain their radar-evading characteristics. On programmes such as Eurofighter Typhoon and JSF, UK-supplied composite materials have to fit first time, every time. The UK’s significant position on such advanced combat aircraft programmes is ample recognition of its capabilities in aerospace composite materials.

Maintenance, Repair and Overhaul (MRO)

If aircraft are not available for flight, then airlines or cargo operators lose money. In such a fiercely competitive market as aviation, maintenance, repair and overhaul (MRO) is of increasing importance.

The UK’s pre-eminent position in world aviation drives a thriving and advanced MRO sector. In 2005, this business area directly employed some 40,000 people in hundreds of different companies all over the country. Even in such a competitive market, the UK has shown that it has the companies with the skills to deal with ever-more demanding customers.

The location of two of the world’s busiest airports – Heathrow and Gatwick, a thriving low-cost airline sector using smaller airports, a rapidly growing airline market, and the strategic position between North America and Asia all add to the importance of aviation in the UK. All of these factors are also key drivers to the thriving UK MRO capability.

UK companies working in aviation MRO have a 17 per cent share of the world MRO market, larger than the UK aerospace industry’s share of the total aerospace market. This is a sign of how capable and successful it is in such a tough environment.

Studies show that this position will be maintained as the world aviation MRO market grows. Today it is worth some US$40 billion, but it will be as high as US$55 billion in 2014. As turnover rises, so will the size and capabilities of the UK MRO sector. The past five years have seen a rise of some 15 per cent in the number of companies working in the MRO segment.

The capabilities of UK aviation MRO companies run across the entire range. These can be as simple as performing daily checks and repairs on the flightline, through more complex regular safety checks of sub-systems, right through to deep and complex scheduled maintenance of whole aircraft. As more and more support and MRO work is outsourced by airlines and other aircraft operators, so the valuable business of spare parts supply and management is also taking on new importance. The driver behind all of these activities is for the operators to save money – and UK MRO providers are showing that they have the skills to deliver those savings.

The capability range of UK aviation MRO businesses means that they cover all the major aircraft types – Boeing and Airbus as the main equipment types – used by airlines and other operators, as well as the key engines for those planes. UK MRO providers also have key support certification with all of the world’s leading original equipment makers of aircraft, engines and aircraft sub-systems.

The UK’s suitability as a place to do MRO business is well-demonstrated by the arrival of overseas players who have recognised the UK’s advantageous geographical position, but also the success of the businesses already established there. Acquisitions of UK

MRO companies have run at an annual rate of tens of millions of pounds for the past five years.

UK aviation MRO businesses are also adapting to the changing MRO market. As aircraft become more complex, so the systems that need to be maintained – advanced avionics and in-flight entertainment systems as key examples – require new support techniques and systems. This has seen UK MRO companies starting to specialise in the higher-technology, value-added end of the MRO chain, an area which demands the highest of skills to deliver the best results for customers.

UK MRO providers are also at the leading edge of new support concepts. Availability contracts for sub-systems – paying for equipment to be useable, rather than paying to repair it –, “Power By The Hour” for engines of all sizes and supply chain learning are all being demanded by customers keen to manage their costs. These systems are being applied at a time when demands on safety are constant – there are no short cuts if safety is a factor.

UK MRO firms are not fixed on the UK market alone: they have global reach, with facilities in every continent. As commercial aviation MRO changes, so UK MRO firms will be matching that shift. Partnering with similar companies in other growth markets – especially Asia and North America – is common, and skills and capabilities can be matched with other players in the MRO field.

The aviation MRO market is tough, demanding and constantly changing, but the UK has the companies with the capabilities and skills to compete on a cost-effective basis. All the drivers in the aviation and aerospace markets demand results from MRO providers – and the UK’s position in the area shows that it can deliver both today and tomorrow.

Supply Chain

The aerospace industry comprises a few huge companies that put their name on aircraft. However, behind those companies is a huge and interconnected supply chain of firms supporting those major companies. Benefiting from nearly a century of aerospace experience, the UK industry has long recognised the importance of that supply chain. As a consequence, UK aerospace companies have examined and streamlined their supply chain to support such major customers as airbus, Rolls-Royce and BAE systems.

To stay competitive, the big UK companies have adopted a Best Practice approach, in line with the rest of the global aerospace industry. Best practice combines the best of several areas of aerospace excellence, including Lean Aerospace, supply chain relationship improvement, people management and e-business. UK companies, however, are taking lean manufacturing a step further. The big firms have found true benefit from sharing their knowledge with the smaller companies on whom they depend.

The Lean Aerospace Initiative in the UK has had a wide-reaching impact. By drilling down into the manufacturing processes of the entire supply chain, productivity has and continues to improve.

From a national perspective, the UK aerospace industry has recognised that it boasts many companies with great expertise. Together they generate about two per cent of gross domestic product. However, overseas business is even more important since 65 per cent of what is made is exported. To maintain and increase the UK’s share of the global aerospace market, the industry has embraced a collaborative approach.

Working together

Traditionally, the big aerospace companies have had a somewhat ‘arms length’ relationship with their suppliers. That is changing as both sides have found that when suppliers and customers work together, prices drop, quality improves and the supply chain becomes more responsive to changing demands. These gains have been achieved through changes in both technology and business culture, especially in the development of relationships throughout the supply chain. On the latter, suppliers and purchasers are sharing their best practice approach to their plans and forecasts, so that both sides can be flexible and prepare changes. Armed with this information, suppliers have been able to hone their production and investment plans to meet the needs of their customers.

As a consequence, the UK aerospace supply chain is used to working together with customers on such things as how design changes can reduce the life-cycle cost of products and improve quality. Indeed, in the UK, suppliers are frequently part of integrated project teams, which have been found to improve the performance of the supply chain as a whole.

To achieve these gains, the supply chain relationships in the UK are characterised by an effort on the part of both suppliers and purchasers to respect commercial discussions and reach agreements that benefit all parties. For companies seeking suppliers, such an environment greatly improves the likelihood of finding a stable and reliable supply of high-quality products.

e-business

The other major change in the UK aerospace supply chain is its adoption of the latest technology in managing the flows of information. The UK aerospace industry has embraced e-business. By moving to digital transfer of information, supply chain transaction costs have dropped significantly while reliability has improved.

The UK has worked closely with the USA on implementation of e-business to improve the efficiency of a major part of the global aerospace supply chain.

One example of this is Exostar, which was launched in 2000 – by the UK’s BAE Systems and Rolls-Royce and the USA’s Boeing, Lockheed Martin and Raytheon, among others – to support the complex trading needs of the world's largest aerospace and defence companies. In 2005, Exostar saw its 23,000 suppliers and manufacturers trade US$23 billion-worth of goods and services over its secure network in nearly eight million transactions. This type of trading is growing fast. Exostar’s 2005 performance represented a 130 per cent increase over the previous year. Similarly, the aerospace associations of both the UK and the USA are working together on e-business initiatives. The UK aerospace supply chain’s experience with e-business offers great advantages in terms of both speed and efficiency.

Quality and reliability

The UK’s aerospace supply chain offers a world-beating combination of a century of experience at the cutting edge of aviation technology, an industry that is dedicated to implementing the most advanced technologies and is comfortable working with foreign partners, with 65 per cent of business devoted to exports. The UK aerospace supply chain also has a business climate that is characterised by an open and collaborative approach to contracts and programmes where the goal is long-term satisfaction. In addition, the UK supply chain has embraced the most modern business practices, ensuring reliable high quality at low cost. All together, these make the UK an ideal partner.

Military aerospace

The UK is one of the largest players in the world defence-aerospace market. It is one of the few countries worldwide that possesses the complete capability to conceive, design, construct and prime contract the most complex defence-aerospace products.

The UK has the second-largest defence budget behind the USA in dollar terms, and has seen increases on defence spending over the past decade. It has also shown that it is able to spend a greater proportion of its defence budget than others on purchasing equipment, typically some 40-45 per cent of the total.

Spending on defence-aerospace equipment is a key procurement area for the UK Ministry of Defence. In the most recent governmental policy document on equipment, the Defence Industrial Strategy published in December 2005, the amount spent on the procurement of new aerospace equipment, as well as the support and modification of in-service aviation equipment, amounted to some £5 billion (US$8.75 billion).

The UK intends to keep investing in capability at high levels on defence-aerospace equipment for the next decade, with the introduction of new fixed-wing combat aircraft such as Typhoon and the Joint Strike Fighter, new transport aircraft in the form of the European A400M, as well as support helicopters of many types, Unmanned Aerial Vehicles, special mission aircraft and the electronic equipment and weapons to keep these platforms modern.

The promises of market access published in the Defence Industrial Strategy have been shown to be valid, as demonstrated by the significant investments made by US and European companies in the UK. Between 2003-05, some £3 billion (US$5.25 billion) was spent buying UK-based defence-aerospace companies. Often the buying companies were new entrants to the UK defence-aerospace market, as well as existing companies reinforcing their position.

The UK also retains a sizeable, open and broadly-based defence industry which delivers a large proportion of MOD’s needs, and we welcome overseas investment, especially from companies that create value, employment, technology or intellectual assets in the uk and thus become part of the UK defence industry.

UK defence-aerospace companies have been at the forefront of exports around the world. The UK has consistently been the number-two supplier of defence equipment for the past 20 years, and has managed to keep this position against tough competition, both from European players, as well as from newer entrants into the defence export market.

Military aerospace products have been at the core of the UK’s overall defence export successes. Key military aerospace exports have included the long-running UK-Saudi Arabian Al Yamamah (Dove of Peace) programme, which was signed in 1985 and has seen over £40 billion of defence trade between the two countries. Sales of other aircraft, such as the BAE Systems Hawk jet trainer, have seen the UK selling doing business with more than 18 countries over 15 years, while sales of military-role helicopters have seen over 20 customers for UK-built products.

UK defence-aerospace exports also represent the ability of overseas firms to source equipment from UK companies. With the high technology basis of the UK’s defence-aerospace industry, UK companies have been sought out by a wide range of overseas programmes. UK-designed and manufactured equipment is on US-built aircraft such as the F-16 and AH-64 Apache, while other key military aircraft such as JAS-39 Gripen and NH90 helicopter are reliant upon the proven capabilities of items such as UK-designed and built engines and avionics. UK suppliers have also been selected regularly to provide key components of weaponry, such as advanced cruise missiles. The selection of the Agusta Westland EH101 as the platform for the US Presidential Flight shows how UK and US companies can work in partnership.

A key aspect of the UK defence-aerospace capability is the ability to access key programmes and products in the USA. This dates back to programmes as old as the F-16, which has sold over 1,500 aircraft to 22 different air forces, but also to the next generation of projects. The UK is a leading supplier of structures, sub-systems and electronics to the Joint Strike Fighter, which is intended to replace the F-16 and other aircraft in US and overseas service.

Research and development

The UK will offer a global aerospace industry the world’s most innovative and productive location, leading to sustainable growth for all its stakeholders.

AEIGT

To stay at the front of the pack in the competitive aerospace market requires long-term vision. The UK is committed at all levels – industry, government and academia – to the long-term future of aerospace R&D to maintain that market leadership.

The UK Government realises that there is the need for an active leadership position, and has been key in setting out how it can provide help and support to aerospace R&D. The science budget, which helps to fund core R&D activities, as well as the systems to support the area, will reach some £3.4 billion per year by 2007, with planned rises beyond that. Looking to the future, the UK Government recently laid out its Science and Innovation Investment Framework 2004-14, which plans to increase R&D across industry to 2.5 per cent of GDP, and the necessary levers are in place to aid this growth.

The Aerospace Innovation and Growth Team (AeIGT) was established in 2002 to plan and guide the strategy for the UK's aerospace industry. The AeIGT is industry-led, but with high-level representation from academia, trades unions and Government departments (Department of Trade & Industry, Ministry of Defence, Department of Transport and HM Treasury). Over 3,000 companies, from the largest to the smallest, are involved.

The AeIGT mission statement is that by 2022: “The UK will offer a global aerospace industry the world’s most innovative and productive location, leading to sustainable growth for all those contributing to the UK industry.”

The work of the AeIGT has led to a National Aerospace Technology Strategy, which was put into action in 2004. This identifies the key technology areas for the UK aerospace industry, and then allows companies to use the AeIGT to access different sources of Government money to enable R&D activities. Tens of millions of pounds in R&D funding has already been disbursed through this system.

The biggest area of Government-funded R&D in aerospace is launch investment. This is repayable funds to allow for continued development of aerospace systems so as to allow them to make the transition into the production phase.

UK Government launch investment is a risk-sharing investment for major aerospace programmes. It is open to any company with a UK presence, and is assessed on a case-by-case basis. Since 1997, almost £1 billion has been disbursed, and this has helped launch many of the successful Airbus aircraft, as well as Rolls-Royce Trent engines.

The importance of the aerospace industry in the UK is reinforced by the fact that 12.5 per cent of all R&D activities in the country are in the aerospace area, with the work heavily funded by industry itself. Recent figures show that the industry-funded portion of aerospace R&D is rising, keeping the UK as a market leader in the area. This auto-funded R&D amounted to some £3 billion (US$5.5 billion) in the year 2004/5, ahead of the worldwide market average.

The position and role of universities in the National Aerospace Technology Strategy should not be ignored. Universities have deep and widespread expertise in many high-technology aerospace areas. They work closely with industry to help develop and then pull through research into actual products. One initiative in the academic world has been the creation of an umbrella organisation, the Association of Aerospace Universities.

The UK’s position in aerospace R&D is also shown by the number of companies that come to the UK to source research in the area. Boeing has signed long-term R&D agreements, worth tens of millions of dollars over a multi-year spread, with universities, as well as for test facilities. Bombardier has also looked to the UK for research for its regional aircraft. The position of Airbus in the UK means that the EADS-owned company sources some £340 million of R&D in the UK on all aspects of aerospace. All aircraft manufacturers come to the UK to collaborate on aero engine R&D too.

The role of defence/aerospace R&D should not be forgotten. The UK has the largest defence R&D spend in Europe.

One of the biggest areas of defence R&D spend is on aerospace systems, seen in such programmes as developments of the Typhoon multi-role fighter, or the long-term unmanned aerial vehicles programme recently announced, which is backed by £250 million of Ministry of Defence (MoD) capital.

The recent Defence Industrial Strategy saw a firm route map laid out as to how the defence R&D programme will progress into the future. Several initiatives taken to increase the effectiveness of the UK’s defence R&D spend include Defence Technology Centres (DTCs), which bring together the MoD, industry and universities to co-operate on “Blue Sky” R&D. Areas of activity include data fusion, human factors and autonomous systems engineering. Ninety million pounds have already been allotted by the MoD to the DTCs.

Towers of Excellence is another MoD initiative, creating groupings more focused on applied R&D in areas seen as key to the UK – i.e. guided weapons and electromagnetic signatures. These are being set up in a dozen different technology areas, some co-operating closely with US institutions.

Space industry

The UK’s growing and innovative space industry offers a wide array of skills in commercial, scientific and military sectors, employing nearly 16,000 people and with a total turnover of £4.8 billion. The UK’s space expertise includes manufacturing satellites, scientific instruments, battery technologies, software and data analysis.

Microsatellites

The UK leads the world in the development of microsatellites – a cutting-edge area of satellite technology that offers lowcost space access for both commercial and government customers. Microsatellites can carry a wide array of payloads, such as communications relay or remote sensing. As microsatellites are in low- Earth orbit, are not only inexpensive to launch, but they can also have lives of more than ten years because they are largely protected from solar radiation.

The University of Surrey Space Centre and its spin-off Surrey Satellite Technology Ltd (SSTL) have developed a number of microsatellites for a wide range of customers. They include French military satellites and Chilean scientific and communications satellites.

SSTL developed the Disaster Monitoring Constellation of four satellites, which played a role in co-ordinating relief after the Asian tsunami at the end of 2004.

Those satellites weighed about 90kg and costed less than £10 million each. A conventional satellite would have weighed several tonnes and costed more than £120 million.

Partners

The UK is involved in a wide range of space partnerships, ranging from the European Space Agency (ESA) to the US National Aeronautics and Space Administration (NASA). UK-based space activities also make up a significant part of EADS’ civil and military space capabilities.

The UK is an active member of ESA, which receives 65-70 per cent of the civil space expenditure. The UK Government has committed itself to a number of ESA exploration programmes as well as research into advanced telecommunications satellites and a 2.5 per cent increase in ESA’s mandatory activities.

In the realm of scientific exploration with ESA, the UK is involved in the Cassini-Huygens mission to explore Saturn and its largest moon, Titan, which has a hydrocarbon atmosphere that scientists believe may be similar to the Earth’s years ago.

The UK is also taking part in ESA’s Aurora mission to explore Mars. The Aurora programme plans to send a roaming probe to the planet, followed by a mission to bring back Martian soil for analysis. The findings of those missions will determine if a manned flight should be launched.

With ESA, the UK is also playing a leading role in the CryoSat-2 mission to gather information on parts of the polar icecaps that have not been observed from space.

The UK also works with NASA on the Hubble Space Telescope and Swift, a joint UK-US-Italian mission to examine gamma ray bursts, which are the most powerful explosions seen in the universe.

In addition, the UK is involved in a number of major international programmes, such as the Galileo Navigation Satellite Constellation. Galileo will have both military and civil users.

Another indicator of UK expertise, and the industry’s overall attractiveness, is the number of requests for partnership from the space agencies of overseas countries: the USA, Japan, India and South Korea are all recent suitors.

Military Space

On the military side, the UK has embarked on a major communications programme - Skynet 5, led by EADS. The UK has taken a revolutionary approach to military satellite services that take maximum advantage of civil innovation and best practices. The UK Ministry of Defence has signed a private finance initiative with EADS’ UK-based subsidiary Paradigm Secure Communications, who will design, develop, launch and operate the Skynet 5 constellation of satellites. EADS Astrium’s UK arm will build the satellites, using its 30 years of experience in military communications satellites with the previous Skynet and SCOT programmes.

Under the Skynet 5 programme, Paradigm will also provide communications services for approved government customers and non-governmental organisations. One such customer is NATO.

However, communications is not the only area of UK space expertise. Astrium has developed a small synthetic aperture radar reconnaissance satellite called MicroSAR that combines the UK’s expertise in small satellites, radar technology and data analysis. The advantage of SAR imagery over optical imagery is that it can see through clouds and at night.

Growth

The UK space sector has prospered through its skill and expertise. Industry turnover reached £4.8 billion in 2004/5, up from £3 billion six years earlier. The UK has managed that growth through increasing productivity in this demanding technology area.

Ninety per cent of the companies in the UK space industry predict good growth over the short term. This is largely due to the Skynet 5 military communications programme and the European Galileo satellite navigation programme. However, exports are increasingly important. Industry executives identify the USA as offering the best potential for future growth, followed by Germany, France and China.

The Society of British Aerospace companies (SBAC)

The society of British aerospace companies (SBAC) is the UK’s national trade association for companies supplying the civil air transport, aerospace defence, space and the emerging homeland security market.

SBAC has several sides to its work. In promoting the aerospace industry in the UK, as well as its image overseas via exhibiting at trade shows, the society is active in research and data collection which can then be used to the advantage of its members. This is especially true of the smaller companies, which might not be able to afford their own market research departments.

The data that SBAC collects is also used to help shape debate about all aspects of the aerospace industry in the UK. Such interventions have included reaction to the question of air travel and the environment, airline safety in Europe, and the UK’s own Defence Industrial Strategy.

SBAC is key to the development of the UK aerospace industry as a leader in implementation of the Aerospace Innovation & Growth agenda, working closely with Government departments such as the DTI. In roles such as this, the SBAC is in a position where it can lobby the UK Government. In addition, on a number of occasions over the past decade, SBAC has been turned to by the Government as an honest broker for information and data on key aerospace topics in both the commercial and military aerospace markets.

UK attractions

SBAC has also adapted to the growing global nature of the aerospace industry. This has seen foreign aerospace companies being deemed eligible to join SBAC as long as they have a registered presence in the UK, and have UK employees. This has made the UK attractive to a wide range of European and North American firms, and has also shown the openness of the UK aerospace market. One result has been that UK aerospace companies are actively courted from all over the world as suppliers of high-technology equipment.

In addition, SBAC has established formal partnership agreements with aerospace and defence organisations operating in the English regions and devolved administrations.

The UK aerospace sector has substantial clusters of high-technology companies and facilities scattered across the country:

• Aerospace Wales. A growth area, with combined business of some £500 million annually, and over 100 companies.

• SBAC Scotland was launched in June 2005 to represent the interests of Scottish companies in the aerospace and defence sectors.

• Farnborough Aerospace Consortium. Representing the South East of England, it is home to some 1,200 companies involved in the aerospace industry.

• Midlands Aerospace Alliance. Some 300 companies, ranging from engines through control systems.

• Northern Defence Industries. Representing over 200 companies in the North East of England.

• Northwest Aerospace Alliance. Seen as the heartland of the UK aerospace industry, with over 1,000 different companies with a combined aerospace turnover of £7 billion.

• West of England Aerospace Forum. The body that looks after the interests of some 250 aerospace companies in the South West of England.

Taking all of the SBAC members, as well as companies that might be members of the regional alliances, the society represents over 2,600 concerns. There is also SBAC Scotland, which looks after aerospace companies operating in the thriving Scottish aerospace industry. In addition, SBAC has a bureau in Toulouse, providing support and facilities for UK companies to access the aerospace market in France.

All of the regional aerospace associations and alliances, as well as SBAC itself, have intimate links with the regional offices of the Department of Trade & Industry, as well as with UK Trade & Investment, and the Defence Export Services Organisation of the Ministry of Defence.

SBAC is also a prime mover in two distinct areas of the aerospace business through its co-sponsorship of two business area groups: the British Airports Group (BAG) and the UK Industrial Space Committee (UKISC).

BAG is the professional organisation for UK companies involved in the overseas airport development sector. Its primary role is to promote overseas the 200-plus UK firms that have products and services concerned with all aspects of airports, from planning through to day-to-day operations.

UKISC is the UK’s main representative body for those companies undertaking space work. Operational since 1975, it has key missions: to promote the sector in the UK, Europe and the wider world; to promote better understanding within the UK Government and legislature of the space industry; and to supply data and information on the sector to members.