Chief executive Charles Woodburn says: “The review recognises the increasingly uncertain world we’re living in and the capabilities the UK needs to defend our freedom and strengthen our national security now and into the future.
“The government’s investment rightly balances conventional equipment like combat aircraft, submarines and ships with drones, cyber and other critical new technologies.
“It also emphasises strengthening supply chain resilience through investing in the UK’s industrial base and the importance of strategic international partnerships.”
He adds: “This clear demand signal gives our sector the confidence to invest in boosting capacity, driving efficiencies and developing cutting-edge technologies to meet evolving requirements for the UK and our allies, while driving economic growth through exports and thousands of highly skilled jobs across the country.
“With our partners across the supply chain, we’re confident we can play our role in delivering the UK government’s vision.
“We’ve ramped up investment in our business, investing £1bn in our facilities last year alone. At the same time, we’ve increased our investment in self-funded research and development and made strategic acquisitions in drone and counter drone technologies, while growing our UK workforce by around 15,000 people over the past five years.”
Lancashire’s supply chain is working to meet the challenges that the increased demands on it will bring. However, there are issues that need to be overcome.
Based in Darwen, Brookhouse Aerospace specialises in aero-structure composites, fabrication, machining, treatments and engineering. Simon Smith, its business development director, says: “The supply chain is ready to step up and deliver a ramp up in production targets, once OEMs can provide the commitment needed to enable resilience across the sector.
“It’s a chicken and egg situation. Plans to build an increased number of aircraft over an identified period of time are positive news for the whole supply chain.
“However, for SMEs to be able to buy materials, invest in technology and build the skills base needed to make it happen, security is needed in the form of orders placed.”
He points to the latest aerospace supply chain resilience report published by global consultancy Roland Berger, highlighting disruption that exists
throughout the supply chain. He adds: “One- third of the companies surveyed say they’re not ready for the planned increase in production due to personnel shortages, production issues or capital constraints, and bottlenecks are already affecting ramp-up.
“Solutions lie in more localised and responsive supply chains, as well as dual sourcing for critical components. Both will help to build a more robust, and competitive, supply chain – in turn supporting prime production schedules.
“People are also a huge factor, with a lack of appropriate skills being a real issue. Increased competition for the best people often results in companies lower down the supply chain being priced out.
“However, it’s great to see that regional associations, such as the North West
Burnley based Velocity Composites, a leading supplier of advanced composite material kits to the aerospace market, has renewed its relationship with BAE Systems for a further three years.
Velocity has been working with BAE since 2010 and will continue to provide process material kits for both the F-35 and Typhoon programmes. It is looking to benefit from the global increase in defence spending.
Speaking at the time of the announcement, chief executive Jon Bridges said: “Our business development teams are building on existing relationships in defence sector and developing our business case with other defence OEMs in Europe and the US.”
The North West Regional Defence and Security
Maximising the scope of an underutilised capability has enabled us to support the ramping up of aircraft production and help retain this key capability within the UK
Aerospace Alliance, are putting extensive resources into supporting training, upskilling and attracting new people into the sector.”
Simon describes access to finance as “a critical challenge for many” though it is an area where support is available.
He says: “Proactive businesses are increasingly investing in resources to build capacity, prior to forecasts being confirmed. However, most are unable to make such a leap of faith, without commitments being in place.”
Brookhouse has recently invested in additional machining technology to enhance its offer for high volume, lights-out manufacturing. The decision was based on a drive to become a more vertically integrated supplier and improve control over the complete production process.
In response to demand, the business has also opened up its surface treatments capabilities. Simon explains: “When OEM capacity surveys highlighted that additional capacity was needed, we realigned our production capabilities – which previously were dedicated solely to treating our own manufactured parts – to support the wider supply chain.
“Maximising the scope of an underutilised capability has enabled us to support the ramping up of aircraft production and help retain this key capability within the UK.”
Cluster (NWRDSC) is looking to play its part in the drive for growth,
Set up at the end of last year, it aims to further raise the profile of the North West’s capabilities in defence and security, while fostering greater collaboration between businesses, academia, and government to drive investment and innovation in the region.
Prof Andrew Schofield, who chairs the cluster, says it now has more than 150 member organisations, has “gained great momentum and has already helped to bring new suppliers into the defence and security supply chain”.
He adds: “This is providing the opportunity for the MoD and primes to better access the wealth of capability across Lancashire and the wider North West industrial base.
“We have numerous examples of new connections, collaborations and funding applications that have occurred as a result of engagement with the NWRDSC.
“A number of organisations based in Lancashire have joined the cluster and are directly benefiting from the engagement with the MoD.
“A key focus area is to raise the profile of the fantastic capabilities we have here in Lancashire and the wider North West.”
Charles Woodburn LANCASHIREBUSINES SV
IEW.CO.UK
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AEROSPACE AND DEFENCE
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