The U.K. government and industry yesterday pledged a long-term partnership and an approximately $3 billion investment in the aerospace industry to keep its manufacturing on the cutting edge.
Launched yesterday by Deputy Prime Minister Nick Clegg during a visit to European Aeronautic Defense and Space Co.’s (EADS) Airbus in Filton, it sets out how they will ensure the United Kingdom thrives in the face of increasing global competition and can exploit rapid changes in technology.
Underpinning the aerospace strategy is about $3 billion in investment over seven years to create a U.K. Aerospace Technology Institute (ATI). The government will provide approximately $1.5 billion in funding with industry matching this amount.
The ATI is expected to allow industry and academic researchers to develop technology for the next generation of quieter, more energy efficient aircraft. It will secure in the United Kingdom the research and development activity necessary to win work on future aircraft programs. It is estimated this will secure up to 115,000 high value jobs in aerospace and its supply chain in the long term.
Clegg said: “Aerospace experts with highly specialized skills are working hard to make sure the U.K. remains Europe’s number one aerospace manufacturer. We’re doing all we can to maintain this jewel in our crown, which is why government is working hand in hand with industry to inject ($3 billion) into a unique long term strategy to maintain Britain’s position as the center of aerospace technology.
The United Kingdom’s best technical experts can ensure it remains the world’s preferred supplier and continue to build and design the planes of the future–lighter, quieter, faster, and more fuel efficient, Clegg said in a statement.
Business Secretary Vince Cable, who chairs an aerospace business leaders group, said: “Our aerospace sector already supports more than 3,000 companies and employs 230,000 people across the United Kingdom. The potential for growth is huge. By 2031, the civil aerospace market will be worth in excess of $4.5 trillion.”
Marcus Bryson, CEO of GKN Aerospace and Land Systems, and co-chair of the Aerospace Growth Partnership, said: “The creation of an Aerospace Technology Institute puts the U.K. in a strong position to deliver the technologies, skills, capabilities and investment we need to take advantage of the exciting growth opportunities that are forecast for the sector.”
To ensure the U.K. aerospace industry remains second only to the United States, the industrial strategy focuses on investment in four key, high value areas of modern aircraft where the United Kingdom excels–wings, engines, aerostructures and advanced systems, Bryson said.
With the next generation of aircraft set to feature substantially different technologies from those used today, this will ensure the our position is protected in the face of growing international competition, he added.
Improvements enabled by the ATI are expected to lead to a reduction in CO2 emissions of more than 100 million tons each year from next generation aircraft–equivalent to taking 20 million cars off the road around the world.
The aerospace industrial strategy also addresses access to finance issues faced by the sector–due to the heavy up-front investment costs and long timescales required to make a return. An Aerospace Finance Forum has been established that will see aerospace companies working with the banks and professional services firms. This has already delivered a commitment from Barclays and RBS to create a network of regional aerospace finance specialists.
Earlier this week, the European Investment Bank signed a $488 million contract with EADS to support the company’s innovation and research and development work (Defense Daily, March 19).
This sector strategy is a key component of the government’s work on industrial strategy. The aim is to give businesses, investors and the public greater long-term certainty and to maximize the opportunities for promoting growth.
Ministers also confirmed an additional $755 million for other key sectors in its industrial strategy in which the United Kingdom has a comparative global advantage. The government aims to at least double that amount with industry funding by working in partnership with business.