David Stanley is finance director at Rawtenstall based ELE Advanced Technologies, which makes components that go into jet engines. He says that going through a recent bidding process with an aerospace company in France, one of the challenging questions the business faced was if it could provide the carbon footprint for the part it was looking to sell.
He says: “Sourcing decisions are going to be quite different in the future. It is really important to understand what you consume in terms of energy bills and also the travel for that part in terms of the supply chain.”
Sam Butterworth, integration engineer at Barnoldswick based Buoyancy Aerospace, which works for a range of major players in the sector, reveals the business faced a similar situation when pitching to an OEM at the Paris Air Show. He says: “We had to provide an ESG plan and it was crucial.”
As well as the digital transformation, this increasing focus on governance issues is already having an impact on Lancashire’s manufacturing and engineering.
Stephen Kelly, director at Burnley aerospace business HycAero, describes the growing need to provide information and reports to customers as a “hidden cost” and he adds: “Without complying we can’t do business with the likes of BAE Systems, Airbus and Rolls-Royce.”
A&G Precision and Sons is a family run business based in Preesall with more than 30 years’ experience in the manufacture of complex machined components for a wide range of sectors, including military and civil aerospace.
Commercial director Wayne Richardson talks of the same challenges: “At the moment we’ve got Airbus asking for information, BAE Systems
The net zero agenda will continue. Other countries and other governments will
continue to push those agendas. We have to
adapt if we are going to sell international products
asking for the same information through a different portal, with Rolls Royce after the same. It is a very disjointed way of doing things.
“Every large organisation needs to measure their supply chain. At the moment we are feeding this information in three or four different directions and that’s the cost.”
Ginni Cooper, partner at accountants MHA Moore and Smalley, says: “It is great to be part of the supply chain but it does bring pressures when it comes to ESG and carbon.
“Our larger clients are getting used to that, they understand they have got reporting requirements. For smaller businesses it is about educating them that it is coming down the road
“That is going to put a real focus on businesses within the EU, looking outside their own businesses towards their supply chain and ensuring they are complying with their environmental, social and governance requirements.
“Even though we are not in the EU, what is happening in Europe is going to have a real impact. If we want to trade in Europe we are going to have to comply with their regulations.”
Continued on page 54
for them as well.” What is coming down the road for the supply chain is more compliance and governance, according to Rod Biddlecombe, partner and environmental lawyer at legal firm Brabners.
He says: “Next year or the year after the Corporate Sustainability Due Diligence Directive is going to be introduced in the EU.
Tomorrow done better for Lancashire manufacturers
Are you a Lancashire-based manufacturer with big ambitions? AMRC North West can help you.
Specialist support is available across our core capabilities in:
- Additive manufacturing - Batteries and automation - Digital manufacturing
- Low carbon technologies - Machining - Supply chain resilience
Talk to us and see how we can help your business:
northwest-enquiries@amrc.co.uk 01254 947 100
amrc.co.uk/northwest
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