38 AEROSPACE AND DEFENCE
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One of four enterprise zones in the county and first announced back in 2011, Warton has been a slow-burner in terms of its development, certainly compared to Samlesbury to the east.
That aerospace enterprise zone, which also sits next to a BAE Systems aircraft manufacturing plant, is today home to AMRC North West, undertaking world leading research in advance manufacturing, and BAE’s Academy for Skills and Knowledge (ASK) training facility.
Despite its slow start, the possibilities that exist for Warton are widely acknowledged. A 2023 study carried out by PwC confirmed the potential of test and innovation centres at the enterprise zone to “unlock significant regional benefits”.
Its report highlighted the impact of capturing new revenue and investment from future aviation and space technology markets, with the Unmanned Aircraft System market alone expected to grow at eight per cent annually, contributing £45bn to the UK economy by 2030.
The expertise in cutting-edge R&D that exists in the locality cannot be underestimated. Sitting close to Altitude on BAE Systems’ site is the ‘Factory of the Future’ where the defence giant trials and tests new technologies as part of its move to transform next generation manufacturing capabilities.
Warton is also home to ‘FalconWorks’ – BAE’s centre for advanced research and technology development in its Air Sector business.
Unveiling Altitude at the Preston gathering, the new Lancashire Combined County Authority declared: “The impact of this initiative kickstarts wider Warton EZ activities, leveraging strengths in aerospace, space, engineering, and cyber application sectors.”
Work to connect with industry is well underway. Scores of business leaders attended a breakfast event at Altitude in late May aimed at highlighting the potential for collaboration and partnership working and the tailored support that the university can deliver.
Andy Walker, head of business growth at Lancashire County Council, spoke to that audience in positive terms about the “potential and impact” Altitude and the enterprise zone can have, “not just in this area but in terms of the wider economy of Lancashire and in terms of national growth”.
Professor Graham Baldwin, the university’s vice-chancellor, is eager to promote the opportunities of collaboration with industry, including the work being carried out to push the boundaries of unmanned flight.
He says: “We see Altitude as a bold step forward in terms of aerospace innovation. The aim is for academia, industry and government to come together to shape the future.”
Martin Blunt, head of the university’s enterprise and engagement unit, adds: “We are building an eco-system to drive innovation. That’s what this place is all about.”
BUILDING A DEFENCE CASE
A meeting held in the City of London in early June made few headlines. However, its significance for Britain’s defence sector cannot be underestimated.
The UK’s drive to improve its warfighting readiness and turbocharge defence innovation was the focus of the first ever meeting of the government’s new Defence Industrial Joint Council (DIJC).
It brought together government ministers and defence firms of all sizes with trade unions and investors. Better decision-making and communication between the Ministry of Defence (MoD) and its industry partners was among the items on the agenda.
Co-chaired by Charles Woodburn, chief executive of BAE Systems, the meeting came at a significant moment for the sector, following the publication of the Strategic Defence Review.
It also took place in the wake of the decision to increase defence spending to 2.5 per cent of UK GDP by April 2027, recognising the critical importance of military readiness in an era of heightened global uncertainty.
Speaking before the DIJC meeting, defence secretary John Healy said it would work to forge a new and improved partnership between government and industry, while also bringing trade unions and investors closer to the heart of defence decision-making.
The government has made it clear. Its aim is to make defence “an engine for economic growth” across the UK, with this new partnership playing a crucial role and a ‘Defence Industrial Strategy’ on the way to drive the change needed to deliver.
That strategy is set to include engaging industry early in procurement processes on desired outcomes; ensuring that suppliers are rewarded for productivity and for taking risks and reducing the burden on potential suppliers from startups to primes.
The government’s growth aim is shared by Lancashire, where defence and aerospace make major contributions to its economic wellbeing. And it is no surprise that ‘UK Security’ sits at number one in the list of ‘priority opportunities’ in the Combined County Authority’s draft Lancashire Growth Plan.
A major part of the document centres on the county’s strengths in military aircraft production and its cyber capabilities. It declares: “at a time of heightened conflict and uncertainty, Lancashire’s contribution has never been greater, drawing on some of the area’s largest and most successful employers, assets and products.”
The defence review certainly includes a range of positives for the county’s defence, aerospace and cyber sectors and their workforces in its pages.
Cyber is one area of focus. The review recognises its important to the UK’s defence. And with Samlesbury becoming the home of the National Cyber Force (NCF), Lancashire is set to play an integral role and benefit economically moving forward.
The review also talks of creating a “next- generation” RAF, including upgraded Typhoons and next-generation fast jets through the Global Combat Air Programme – two military aircraft projects firmly anchored in Lancashire.
Since its publication the government has also announced plans to buy at least 12 F-35 stealth jets that can carry nuclear warheads.
BAE Systems workers based at Samlesbury are involved with the production of the rear fuselage for every F-35 in the global fleet. The first fuselage was delivered to US planemaker Lockheed Martin in 2005.
BAE Systems employs 13,700 people across Lancashire with the vast majority working at its aircraft making plants in Warton and Samlesbury.
Large-scale investment in submarine building at BAE’s Barrow yard, with plans to grow the UK’s nuclear-powered attack submarine fleet to up to 12, will also have a positive impact in Lancashire through the supply chain.
BAE is planning more large-scale investment and recruitment as it prepares for a continued increase in global defence spending.
It will recruit more than 2,400 apprentice, undergraduate and graduate roles in the UK this year. And it aims to build on its more than £1bn of capital expenditure in 2024, to further increase capacity and develop and modernise its systems.
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