Aerospace companies in West Midlands urged to diversify, A|D|S
Release Date: 2009-05-25
Aerospace companies in the West Midlands have been urged to diversify their business plans and invest in new programmes in order to emerge from the clouds of recession firmly on course.
The messages were delivered by industry leaders at the region's Aerospace Cluster Forum, co-ordinated by regional development agency Advantage West Midlands.
The event, held at TRW-Conekt's conference facility in Solihull, was combined with a meeting of the Midlands Aerospace Alliance (MAA), which is also funded by Advantage West Midlands as well as the East Midlands Development Agency.
Speaking in front of more than one hundred MAA members from across the Midlands, Robert Nuttall, Vice President of Strategic Marketing at Rolls-Royce, said the global power systems giant was broadening its portfolio in order to navigate the recession and be in the best position possible when the economic recovery arrives.
"The key is to invest," said Mr Nuttall, "if you don't invest now, you will not be ready for the upturn. It is a tough message - we are all broke - but if we don't invest and miss that upswing, we are all in real trouble."
Nick Miller, Business Director, Industrial Strategy at Thales UK - domestic arm of the global defence industry specialists - agreed with Mr Nuttall, adding that early planning and investment in innovation were crucial.
"Research and development will get you through this downturn," he said, "the key for many of us will be carefully balancing the broadening of our portfolios across the defence budget areas.
"At the same time, cash is king - look after your cash and you will get through this. And make supply chain relationships a priority - partnerships in the supply chain are vital."
Professor Andrew Walker, from the School of Mechanical, Aerospace and Civil Engineering at Manchester University, said: "The commercial aerospace industry is in for a very hard landing. We are not going to build many more planes in the next ten years than we built in the last ten years. We will have to find another way to grow - through manufacturing.
"We need more efficient aircraft, composite frames, efficient engine controls and fuel saving technologies. We are at the Eureka moment."
Andrew Mair, Chief Executive of the MAA, said: "The messages are clear, the fittest businesses will survive and the boldest innovators give themselves the greatest chance of success in the future."
Jim Coyle, Aerospace Cluster Manager at Advantage West Midlands, said: "The challenges generated by the recession make it more important than ever that the region's aerospace cluster works together to identify and develop new niches in the market place.
"Advantage West Midlands will continue to take a strategic lead and bring businesses together. The cluster is strong and enables companies to exploit global market opportunities through further market consortium and collaborative business strategies.
"Our aerospace and defence sectors include more than 480 companies employing 20,000 people and generating an annual turnover of £3bn.
"These businesses operate at truly world class standards and underpin a huge amount of high value jobs, with some of the larger companies in the region investing heavily in research and development.
"We are already a supporter of the World Class Supply Chain for the 21st Century programme, and a key player in the Next Generation Composite Wing project, led by Airbus, and the Environmentally Friendly Engine programme, headed by Rolls-Royce.
"And our own technology exploitation programme led by the MAA means our companies are already working together on the new technologies highlighted as crucial to the success and future of the global, national and regional aerospace industry.
"Growth is forecast in the aerospace industry over the next 20 years, in spite of the current global recession, with exciting new developments coming on board. These include a major programme to replace short range aircraft like the Airbus A320 and Boeing 737.
"With billions of pounds of potential global contracts up for grabs in the next ten years alone, it is essential that we give the region the best possible opportunity to win our fair share of orders."
| Type: | NORMAL |
| Company: | A|D|S |
| Country: | United Kingdom |
| Url: | http://www.sbac.co.uk/community/cms/content/preview/news_item_view.asp?i=19602&t=0 |