Aerospace

Midlands 

Aerospace 

MAGAZINE 

ISSUE 32. SPRING 2013 

R&D LIGHT 

SHINES 

BRIGHTER 

NEW TECHNOLOGY FUNDING FOR AEROSPACE 

SUPPLY CHAIN ANTICIPATED, PAGE 4 

CONFERENCE 

SUCCESS STORY 

Delegates back return 

of MAA event – P2 

FLYING THE 

FLAG AT PARIS? 

MAA members gear up 

for Paris Airshow – P6 

INS AND OUTS 

OF BORROWING 

What financiers look for 

before they lend – P10

Update 

ONLINE: WWW.MIDLANDSAEROSPACE.ORG.UK/news 

GOVERNMENT BACKS STRATEGY 

WITH £2 BN IN R&D FUNDING 

A £2bn investment in UK aerospace 

R&D, announced in March, is 

welcome news to the industry and 

a good outcome for the Aerospace Growth 

Partnership (AGP), the joint governmentindustry 

body set up last year to look into ways 

of developing the UK’s aerospace sector. 

The funding is to be provided over seven 

years under the Aerospace Industrial Strategy 

(AIS), mainly to finance a UK Aerospace 

Technology Institute (ATI) designed to 

support efforts by academic researchers 

and industry to develop technology for the next 

generation of quieter, greener and more fuelefficient 

aircraft. 

The government’s investment of more than 

£1bn will be matched by industry. 

“We’re doing all we can to maintain this 

jewel in our crown,” said Deputy Prime 

Minister Nick Clegg. The AIS, he added, was 

a “unique long-term strategy to maintain 

Britain’s position as the centre of aerospace 

technology”. 

Emma Reynolds, Labour MP for 

Wolverhampton North East and Chair of the 

Commons All-Party Group on aerospace, 

applauded the development. “Researching, 

designing and building the next generation 

of aircraft requires long-term, sustained 

investment and cross-party support. I 

welcome the government’s commitment.” 

Details of the ATI, including where its 

small core team of 30-50 staff will be located, 

have yet to be worked out. It has the backing 

of major aerospace players, including 

Continued on pg 4 

RECORD EVENT PAVES WAY FOR 2014 REPEAT 

The MAA’s first annual 

aerospace conference 

was an overwhelming 

success, drawing praise from 

the 160 attendees and support 

for more such events. 

MAA members and industry 

representatives who packed 

Rolls-Royce’s Derby Learning 

and Career Development Centre 

on 20 February used words 

such as informative, fascinating, 

useful and thought-provoking 

to describe the event – the 

biggest-ever for the MAA. 

“It was good to be given a 

snapshot of what our customers 

really see, what (potentially) our 

government intends to do to 

develop our industry, and what 

the future may hold,” said one 

delegate. Added another: “It was 

great to see the ‘helicopter view’ 

from the primes and good for 

us to mix with a variety of 

firms to understand some of 

the challenges.” 

With its theme of ‘the visions 

and volumes every aerospace 

supplier needs to know’, the 

conference offered Midlands 

supply chain companies access 

to vital knowledge to help them 

plan their next business moves. 

The keynote speakers – 

Marcus Bryson, president 

and chief executive, GKN 

Aerospace; Pernille 

Boisen, chief procurement 

officer, Rolls-Royce; Richard 

Aboulafia, vice-president 

analysis, Teal Group; 

David Hygate, director, 

Europe, TeamSAI; and Clive 

Lewis, managing partner, 

Achieving the Difference LLP 

– provided insights from their 

unique perspectives. 

MAA operations manager 

Anne Esterson said the 

response of delegates was 

“encouraging” and suggestions 

would be taken into account 

during planning for the 

2014 event. The date will be 

announced as soon as it is 

decided. 

www.midlandsaerospace. 

org.uk 

02 MIDLANDS AEROSPACE

MAA 

clusters 

in europe 

The MAA is helping 

set up a network of 

European aerospace 

clusters called 

TransNetAero. Led 

by the German 

Aerospace Academy 

in Stuttgart, the 

heterogeneous 

grouping includes 

two small countries, 

Netherlands and 

Switzerland, and 

two other regions, 

Wallonia in Belgium 

and Normandy, 

France’s third 

largest aerospace 

cluster. The idea is 

to use support from 

the EU’s Interreg 

fund to help 

smaller companies 

in each region 

access knowledge 

about customer 

requirements, 

technology 

expertise and 

training from the 

others – to make a 

cluster of clusters! 

More news to follow. 

NEW AEC PLANT 

GETS GO-AHEAD 

AERO ENGINE CONTROLS SET TO INVEST IN £60M STATE- 

OF-THE-ART MANUFACTURING FACILITY IN MIDLANDS 

Aero Engine Controls 

(AEC) has received the goahead 

for its new advanced 

manufacturing and technology 

facility in the Midlands. 

AEC, part of the Rolls-Royce Group, 

plans to invest £60 million to develop a 

250,000 sq ft state-of-the-art facility at 

Birmingham Business Park, Solihull. 

Design, development, manufacturing 

and testing capabilities for AEC’s 

leading engine control systems 

technology will be incorporated at the 

headquarters site, with associated 

expansion space. AEC intends to 

relocate its staff of more than 1,100 

during 2014. 

AEC chief executive Simon Burr was 

“delighted” to receive planning approval 

for development of the site. ”This is 

fantastic news for everybody at AEC 

and we can now look towards growing 

the business for the future. 

“Having our design and 

manufacturing operations under one 

roof, combined with more space and a 

state-of-the-art facility will allow us to 

be much more efficient and strengthen 

our ability to attract employees.” 

Caroline Spelman, MP for Meriden, 

said the news underlines “the 

confidence of business to invest in the 

potential of our area with its history of 

skilled manufacturing and convenient 

location.” 

NEWS 

on the web 

➔ Meggitt is to 

provide thermal management 

products for 

various LEAP engines 

under a £115m contract 

from Snecma. 

➔ Invotec Group and 

Trimite Technologies 

have both received the 

bronze SC21 award. 

➔ Banbury-based 

tool manufacturer 

Norbar Torque tripled 

its exports to Japan 

in 2012. 

➔ Advanced 

Chemical Etching has 

doubled its manufacturing 

capacity with 

an investment of over 

£1 million. 

➔ Atlas Composites 

has been acquired 

by international 

manufacturing group 

Senior plc. 

TRADE MISSION OPENS DOORS IN ITALY 

MAA members who took part in an 

MAA-UKTI trade mission to Turin and 

Milan in May have rated the initiative 

an outstanding success, providing them 

with high-level contacts and good quality 

information that they would have found 

difficult to gain independently. 

“Everywhere we visited, we were welcomed 

with open arms and at levels within the 

businesses that we would not normally be 

able to access,” said one of the 10 members. 

The MAA-UKTI trade mission, organised in 

collaboration with the Torino-Piemonte and 

Discussions at Microtecnica. 

Lombardy aerospace clusters, introduced a 

representative group of Midlands suppliers to 

the purchasing teams at Alenia Aermacchi, 

AgustaWestland, Avio, UTC Aerospace 

Systems (Microtecnica) and Secondo Mona. 

Artist’s impression of 

Aero Engine Controls’ new 

headquarters in the Midlands. 

www.aeroenginecontrols.com 

Click through to 

the MAA website 

FOR current news 

on members’ 

ACTIVITIES: 

www.midlands 

aerospace.org.uk/news 

The MAA participants held a total of more 

than 20 hours of one-to-one meetings 

with 17 procurement leaders at the five 

companies, gained insights into their 

purchasing challenges and strategies, toured 

factories, visited new technology projects and 

networked with the Italian cluster hosts. 

Participants commended the mission. 

“Meetings with such companies would be 

difficult to achieve independently,” said 

one. “From a strategic perspective the area, 

clusters and companies visited were a good 

fit,” commented another. 

MIDLANDS AEROSPACE 03

COVER STORY 

INNOVATION IN R&D FUNDING 

INJECTING 

R&D TO BOOST 

SUPPLY CHAIN 

A successful MAA programme for 

suppliers IS BEING transferred 

TO the national stage with 

the IMMINENT launch of the 

National Aerospace Technology 

Exploitation Programme (NATEP). 

As the industrygovernment 

partnership 

responsible for the new 

Aerospace Industrial Strategy 

‘Lifting Off’, the Aerospace 

Growth Partnership (AGP) 

recognises that the larger 

companies acting alone will 

not be able to make the 

technology advances required 

to sustain the UK’s market 

position in global aerospace 

markets. 

To remain competitive, many 

aerospace suppliers need to 

move up the value chain and 

innovate new technologies 

at a rate greater than our 

competitors. 

A step change towards an 

‘R&D supply chain’ is required 

– but the market is not creating 

this with sufficient urgency. 

The AGP therefore plans 

to accelerate the availability 

of market-ready, innovative 

technologies within the supply 

chain, for prime and first-tier 

manufacturers in the UK and 

overseas to incorporate into 

future aircraft and engines. 

The idea is that by bringing 

together industry and 

CASE STUDY NEW CAPABILITIES SPRING INTO ACTION IN THE 

Springs play an integral role in today’s 

advanced aircraft systems, yet spring 

manufacturers have traditionally had little 

input into the design of those systems. 

This has led to sub-optimal systems design -- and 

systems like actuators that are larger and heavier 

than they need to be. 

SME G&O Springs took advantage of R&D funding 

offered through the Midlands Aerospace Alliance’s 

Aerospace Technology Exploitation Programme (part 

funded by the European Regional Development Fund) 

to collaboratively research more effective product 

solutions. They brought together Reliable Spring & 

Manufacturing Co (a fellow local spring maker), Alloy 

Wire (a material provider) and the Institute of Spring 

Technology, together with Aero Engine Controls and 

BAE Systems as customer advisors. 

The team manufactured a large number of 

GOVERNMENT 

BACKS 

STRATEGY 

WITH £2BN IN 

R&D FUNDING 

Continued from pg 3 

Airbus, Rolls-Royce, Messier- 

Dowty, AgustaWestland and 

GKN Aerospace. 

A government press release 

said the research activity will 

focus largely on four key, 

high-value areas of aerospace 

technology in which the UK 

excels – wings, engines, 

aerostructures and advanced 

systems – firmly targeting the 

aircraft of the future. 

Government funding for the ATI 

will reach £150 million annually 

by 2014/15. The government 

estimates up to 230,000 highvalue 

jobs in aerospace and its 

supply chain will be sustained in 

the long term. 

The MAA has been fully 

involved in the AGP, on behalf 

of its members, to create this 

new industrial strategy for UK 

aerospace which supports 

companies at all levels of the 

supply chain. 


government we can foster 

the development of vital new 

technologies -- with the primes 

and first-tiers also providing 

mentoring and expertise to 

encourage innovation from 

within the supply chain. 

By developing a supply chain 

with a high rate of innovation, 

rich in new technologies, the 

AGP vision is for the UK to be 

better able to offer the right 

products and services, at 

the right time and ahead of 

competition. 

We can ensure that 

global aerospace market 

opportunities are exploited 

to the maximum extent, with 

high value manufacturing work 

retained in the UK. 

This is where the National 

Aerospace Technology 

Exploitation Programme 

(NATEP) will come in, to help 

“There is a huge opportunity 

for the UK to benefit from the 

forecast growth in aerospace,” 

said MAA chief executive 

Dr Andrew Mair. As well as the 

£2bn for technology development, 

the AIS also sets out actions 

for building UK manufacturing 

capability, skills and the 

supply chain companies 

develop 100 innovative 

technologies and so increase 

their ability to win new business 

with higher tier companies 

anywhere in the world. 

NATEP will build on the 

successful regional aerospace 

technology exploitation 

programme previously run in 

the Midlands (see case study). 

The government’s Advanced 

Manufacturing Supply 

Chain Initiative provides the 

opportunity to take this strategy 

forward. 

> It is planned to launch 

NATEP imminently. See www. 

midlandsaerospace.org.uk for 

details. 

Cover photo: Meggitt engineer Steve 

Hughes examines a new technology 

concept developed with suppliers 

and University of Birmingham under 

Midlands ATEP. 

AEROSPACE SUPPLY CHAIN 

springs in 10 different titanium and exotic alloy grades 

and tested them rigorously. The results were fed into 

computer models to project how differently designed 

springs made from different materials would perform in 

various conditions. As a result, aircraft systems makers 

can now be provided with the data they need to specify 

the optimal spring for their systems, allowing them to 

make significant reductions in spring and system size 

and weight without compromising on performance and 

reliability. 

This has enabled G&O Springs and its collaborators to 

move up the value chain, now possessing differentiating 

intellectual property and design expertise which is being 

used to win new export customers and new business in 

North America and Europe. 

Pictured left: innovative software developed under the 

ATEP project enables designers to model the performance 

of springs in different materials under various conditions. 

competiveness of the supply 

chain. “All are critical to grasping 

future growth opportunities.” 

>The strategy can be 

downloaded here: 

www.gov.uk/government/ 

publications/lifting-offimplementing-the-strategicvision-for-uk-aerospace 

Strength in unity 

A revitalised federation of regional UK 

AEROSPACE organisations together with 

NATIONAL body ADS is a step in the right 

DIRECTION, says Martin Wright, chief 

executive of the North West Aerospace 

Alliance. 

Despite being a relatively small 

country in physical size, we have 

the second largest aerospace and 

defence industry in the world. 

Just like France and Germany, both 

of which are bigger, we have relied on 

strong regional clusters to underpin the 

strength of our national industry. North 

West, South West, Midlands, South East, 

Wales, Northern Ireland and Scotland all 

have aerospace clusters serviced by cluster 

organisations and the national body, ADS. 

Clusters are what they say they are: centres of industry whose 

location and concentration of skills is largely a matter of history. 

Cluster organisations work. They can organise local events, 

address regional issues, engage regional government and so on. 

There is a ‘however’ coming. 

We have a national policy and national governments are less 

focused on regions, more on overall capability. 

In this respect, the compactness of the UK should give 

us an advantage. We should be able to use the proximity of our 

clusters to develop a high level, efficient interaction between these 

centres of excellence to the advantage of whole UK capability. 

That is exactly what the cluster organisations have been 

working toward for the last two years or so, under the 

chairmanship of ADS. They have been meeting to develop a far 

more collaborative approach. 

The Aerospace Growth Partnership (AGP) framework for 

developing a long-term aerospace strategy, announced at the last 

Farnborough, has spurred a much more pragmatic approach to 

cluster collaboration. 

The UK Aerospace Federation, as this group calls itself, is 

making real progress in maximising regional cluster strengths to 

leverage the industry’s position as a top UK government priority. 

NATEP (see left) represents a big change towards working hand in 

hand to boost companies in our clusters across the country. 

Doing this under the AGP strategy lets us take a decisive step 

above and beyond a level of inter-regional collaboration that is less 

than good for the national interest. 

There is much to celebrate in our regions and what they have 

achieved independently. The Federation plans to develop a web 

presence to promote the UK’s collective capability through its 

regional clusters. Today we face huge skills and technology 

investment challenges that will only be resolved through a UK-wide 

collaborative approach that maximises regional strengths. 

We have a collective spirit after a cautious start. We can’t 

let it slip. 


PARIS AIRSHOW 2013 

17-23 June 2013, paris le bourget 

ICING ON 

THE CAKE? 

Will the British presence in JUNE’S 

Paris Airshow exhibition halls be 

MATCHED by a strong flying display? 

Implications 

of AGP 

A British Airways Airbus A380 could 

be a featured guest at the Paris 

Airshow in June. 

As Midlands Aerospace magazine went 

to press, observers remained hopeful that 

BA management would agree to send one 

of their newly-painted A380s to the airshow 

from 17-23 June. 

Although BA is scheduled to take delivery 

of its first A380 only in July, the first examples 

in fresh BA livery have already been rolled out 

at the Airbus paintshop in Hamburg. 

If BA agreed, one of its new fleet – destined 

for long-haul services between London and 

Los Angeles and Hong Kong – could find 

itself gracing the skies above Le Bourget in 

the daily flying displays. A BA source told 

Flight Global that the airline had received a 

request and “we’re looking at it.” 

British companies are 

already assured a strong 

presence at this year’s Paris 

show – the 50th edition of 

one of the world’s biggest 

and best marketplaces for 

aerospace. 

The MAA returns with 

10 members (see opposite 

page) who will be exhibiting on Stand G158 

in Hall 2B as part of the ADS-managed UK 

Pavilion. 

If previous shows are anything to go 

by, Midlands exhibitors will return with 

expressions of interest and new contacts to 

follow up in the months ahead. 

After the last show, one MAA member 

said: “The organisation, help and service 

from the MAA team was excellent. We had 

some really good enquiries 

both from the MAA stand and 

possible new customers.” 

Another remarked that the 

stand “was well positioned 

and it attracted a lot of 

visitors.” 

The MAA members will 

be among 2,100 exhibitors 

at this year’s Paris show, which organisers 

expect will attract more than 350,000 visitors. 

“Our exhibitors tell us that the quality of 

visitor they meet at the Paris show makes it 

worth their while to be there,” says marketing 

manager Emma Burgess. “It’s definitely one 

of the highlights of our year.” 

www.midlandsaerospace.org.uk 


Meet our Paris exhibitors at Stand G158, Hall 2B 

Abbey Metal 

Finishing Co Ltd 

Abbey Metal Finishing 

undertakes a wide range 

of finishing operations 

on machined and formed 

parts at its state-of-theart 

Midlands facility. These 

operations include plating, 

painting, anodising, NDT 

and thermal spraying. 

The wide process range 

available enables multiple 

finishing operations to be 

undertaken consecutively, 

at one location, thereby 

minimising lead times and 

meeting the increasingly 

stringent customer 

demands in aerospace 

for QCDR. 

Contact: Mike Beirns – 

mbeirns@amfin.co.uk 

Consult Avila Ltd 

Consult Avila is a wellestablished 

business 

consultancy with a 

solid reputation for 

delivering real solutions, 

real results at pace. Its 

team of management 

professionals has a track 

record of achievement in 

the aerospace and defence 

sectors, providing support 

to clients through the 

entire process of change. 

ConsultAvila specialises 

in the following services: 

business transformation; 

working capital optimisation; 

strategic sourcing; sales, 

inventory & operations 

planning; performance 

improvement; and 

leadership development. 

Contact: Dudley Wood – 

dudley.wood@consultavila. 

com 

Delcam Plc 

The aerospace industry 

demands the highest 

levels of quality and 

consistency, plus costeffective 

production 

and the shortest 

possible delivery times. 

Delcam’s wide range 

of manufacturing 

software and services 

helps companies meet 

those requirements. 

Delcam’s CADCAM 

systems have been used 

on virtually every major 

aircraft programme 

in recent years and in 

many MRO operations. 

Our customers have 

undertaken projects in all 

the areas that go towards 

producing a successful 

aircraft. 

Contact: Sarah Hanson – 

sjh@delcam.com 

Maycast Nokes 

Precision Engineering 

Maycast-Nokes Precision 

Engineering specialises 

in the manufacture of 

high quality precision 

castings. Operating from 

a single modern site, we 

are able to work from fully 

dimensioned 2D drawings 

or 3D CAD models and, 

using rapid prototyping 

techniques, we can supply 

castings on short lead 

times for initial trials or 

fit, form and function 

tests. We can then supply 

production quantities, from 

hard tooling, of machined, 

finished and assembled 

castings. 

Contact: Dave Blower – 

dblower@maycast.co.uk 

Osborn Metals Ltd 

Osborn Metals is a 

UK-headquartered 

manufacturer, producing 

special extruded solid 

and hollow profiles in 

all grades of steel and 

titanium; sections used 

in both airframe and 

engine; low-cost tooling 

and flexible on quantities; 

cold drawn precision 

profiles in carbon and 

alloy steels; cold drawn 

precision tubing in 

carbon and alloy steels 

used in applications 

such as aircraft 

structures, helicopter 

undercarriage and 

driveshafts and roll cages. 

Contact: Richard Towers 

– rtowers@osbornmetals. 

co.uk 

Paul Fabrications Ltd 

Paul Fabrications 

manufactures complex 

fabricated and machined 

assemblies for the 

aerospace, industrial 

power generation and 

nuclear power sectors. 

Operating from a modern 

60,000 sq ft facility, the 

company prides itself on 

exceeding customers’ 

expectations, drawing 

on an impressive 

breadth of engineering 

capability. In support 

of its multiple sector 

approvals, Paul Fabs has 

an ongoing commitment 

to investment that ensures 

the latest manufacturing 

technologies are utilised. 

Contact: Kevin Dexter – 

kdexter@paulfabs.com 

Pre-Met Ltd 

Pre-Met is one of 

the largest precision 

engineering companies 

in the UK and Europe. 

We specialise in contract 

metal presswork and 

metal stampings which 

enables us to manufacture 

precision metal 

components of a complex 

nature for aerospace 

customers around the 

globe. Capabilities include 

prototyping, tool design 

and production, component 

design and production 

feasibility evaluation, 

tool transfer, assembly 

and lead wire services, 

moulding and machining. 

Contact: Mark Smith – 

mark.smith@premet.com 

Sigma Precision 

Components UK Ltd 

Sigma manufactures rigid 

pipe assemblies, precision 

machined components and 

fasteners for aerospace 

and other markets. Our 

specialist processes 

include tube manipulation, 

fabrications, machining, 

welding, brazing, NDT, 

X-ray etc. Access to 

our sister company, 

Chengdu Sigma Precision 

Components in China, 

allows us to offer local 

supply coupled with the 

highest possible value to 

our clients where we hold 

a leading position in our 

chosen markets. 

Contact: Peter Griffiths 

– peter.griffiths@ 

sigmacomponents.co.uk 

University of 

Nottingham Institute 

for Aerospace 

Technology 

The Institute for Aerospace 

Technology at the 

University of Nottingham 

is a major centre for 

aerospace research. Our 

research base involves 

more than 50 academics 

and projects valued at 

about £50 million and 

includes advances in 

materials, manufacturing, 

more electric aircraft, aero 

engines and aerospace 

operations. We work with 

a range of aerospace firms 

to provide access to our 

graduates, improve their 

innovation capacity and 

solve technology problems. 

Contact: Rachel Brereton 

– rachel.brereton@ 

nottingham.ac.uk 

Westmoreland 

Mechanical Testing 

& Research Ltd 

Westmoreland 

Mechanical Testing and 

Research is a leading 

materials test laboratory 

located in Banbury, UK, 

the European subsidiary 

of WMT&R Inc. WMT&R 

specialises in a range of 

materials from common 

metals and alloys 

through to aerospace 

alloys, composites and 

adhesives. Tensile, fatigue 

and other mechanical/ 

materials tests are 

performed at ambient 

sub-zero or elevated 

temperatures. WMT&R 

also specialises in 

materials failure analysis. 

Contact: salesuk@wmtr. 

com 


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• Pattonair (Derby) • Paul Fabrications • Perfect Bore Manufacturing • Peterson Spring Europe 

ut • Pre-Met • Preci-Spark • Precision Micro • Pro-Tek Engineering • PRP Optoelectronics 

V Wallis • Roemheld (UK) • Rolls-Royce • RTC Electronics • RTI International Metals • Rudd 

Industry • SIFCO Applied Surface Concepts (UK) • Sigma Precision Components UK • Sil-Mid • 

s • Snap-On Industrial • SOS Metals UK • Staffordshire Precision Engineering • Star Micronics 

t Treatment • TBAT Innovation • TEC • Technetics Group UK • Techniswage • Technoset • Teer 

and • Thermofax • Thyssenkrupp Aerospace UK • Thyssenkrupp System Engineering • Timet 

Technologies • TTI Group - Nitriding Services • Tufnol Composites • Turnell & Odell • Turner 

ngham - Birmingham Research Park • University of Derby, School of Technology • University of 

ton • UTC Aerospace Systems - Actuation Systems • UTC Aerospace Systems - Marston Aerospace 

ss Services • Wallwork Heat Treatment • Weightmans • Westmoreland Mechanical Testing & 

ampton City Council • WTI Fasteners • Wye Valley Precision Engineering • Yamazaki Mazak UK

ASK THE EXPERTS 

CORPORATE FINANCE 

RISK AND RETURN 

What do financiers look for in a potential client? Not necessarily what 

they’re shown by hopeful borrowers. 

A common error of small companies 

is to assume that there is a market 

for their goods and services. Another 

– and especially relevant in the aerospace 

industry – is that cash flow projections based 

on anticipated contracts will be sufficient to 

convince lenders. 

A mismatch of expectation is to blame for 

much of the friction between borrowers and 

lenders, say bankers and consultants active in 

the aerospace and defence industries. 

The specialist nature of aerospace products 

and services can mean high development 

costs, so decisions on how to fund growth 

require careful consideration. 

Andrew Garvey, director, Aerospace and 

Defence, RBS, says: “Aerospace companies 

often face the need for up-front investment in 

tooling, R&D or new products. This typically 

has to be funded through existing operational 

cash flows and often with no certainty of 

winning a contract or the associated revenue. 

“In short, firms must service the cost of the 

borrowing while waiting for the return.” 

The long-term nature of aerospace 

programmes adds to this challenge: the ‘timeto-payback’ 

investment on plant and equipment 

may be 8-10 years whereas traditional bank 

funding can be uneconomical beyond five 

years. This mismatch can be a challenge for 

firms with good opportunities to grow. 

In reaching a lending decision, RBS 

assesses each firm’s business case alongside 

Tackling supply chain finance issues from another angle is 

the recently-formed AGP (Aerospace Growth Partnership) 

Finance Forum, whose members include representatives 

of industry, government and finance providers, including four 

major banks. 

Dick Martin, managing director of ADEPT-NX and secretary of the 

forum, says there was a concern that, while increased funding is being 

made available for research and development, little was being done to 

ensure the supply chain would have the ability to engage in the results 

of all this work. 

The main task of the Finance Forum – not a lender itself – is to 

identify and recommend affordable and appropriate funding methods 

for aerospace supply chain companies. “We’re trying to look beyond 

simple short-term debt finance – beyond the same old product.” 

10 MIDLANDS AEROSPACE 

its borrowing needs. “A company needs to 

be able to demonstrate that it can repay any 

borrowing without relying solely on any new 

contract wins,” says Garvey. 

Richard Aboulafia, senior analyst with the 

Teal Group, says current economic pressures 

mean that finance personnel, more than 

ever, are “passionately concerned” with the 

next three years while typically an aerospace 

supply chain company will have a perspective 

measured in decades. 

Aboulafia told delegates to the MAA’s first 

annual conference earlier in the year that 

industrialists at every level risk becoming 

“prisoners of third-party finance”, with their 

long-term planning and short-term financial 

considerations on a potential collision course, 

unless their financiers really understand the 

industry. 

From RBS’s point of view, developing a 

broad and consistent understanding of the 

industry goes hand in hand with developing 

good relationships with its customers. Rupert 

“A company needs to be able 

to demonstrate that it can 

repay any borrowing without 

relying solely on any new 

contract wins.” 

Boddington, senior director, corporate coverage 

with RBS Corporate, Birmingham, says: “When 

we understand the dynamics of the business 

and its strategy, we can be clear on what is 

in the realms of the possible from a bank 

perspective. Equally we can help look at other 

aspects of finance that may be out there. It 

is in our interest to ensure firms can access 

appropriate finance for their business.” 

Clive Lewis, managing partner of 

consultants Achieving the Difference, stresses 

the need to prove to financiers that the market 

really will grow as they anticipate. Anecdotal 

evidence suggests that independent market 

data to support the borrower’s claims of future 

demand “give more confidence to the lender.” 

Lewis says that while bank finance 

remains the first choice for most companies, 

alternatives such as crowd funding can be “a 

low-cost way of getting very small amounts”. 

Such an approach could work well for startups 

or companies seeking an easy way of 

giving employees a stake in the business. 

From the SME point of view, particularly 

where the owner may take the role of MD, 

finance director and sales director, their 

banker’s overall knowledge of financial 

markets, including alternative ways to fund 

growth, is extremely important. 

For example, the Business Growth Fund 

may be appropriate in situations when a 

growing firm could benefit from a discussion 

around equity funding. 

LOOKING FOR AFFORDABLE, APPROPRIATE OPTIONS 

The forum gives the space to tackle difficult financial issues in an 

open and honest way. 

What is a typical ‘difficult issue’? It could be how to resolve the 

predicament an SME finds itself in when the small print of a new 10- 

year contract gives its customer the right to re-tender in the second 

year of the contract, which is an unacceptable level of uncertainty to 

the bank from which it needs a long-term credit facility. 

“If we’re determined to make the future better, keep our aerospace 

manufacturing and even bring it back into this country, these are the 

sorts of reviews that have to happen,” says Martin. 

The forum’s efforts have already led to a number of improvements. 

One of them is the recognition that the industry needs special 

attention. Barclays and RBS, both members, are now moving to put 

teams of aerospace specialists in place.


VIEW FROM WESTMINSTER 

“It has been a collaborative process of 

agreeing those areas where Government has 

a role to play in assisting business” 

How Government and industry are uniting to support UK aerospace, 

by Michael Fallon MP, Minister of Business and Energy. 

The civil aerospace sector offers 

huge growth opportunities, but 

our continued success as a 

leading aerospace nation cannot 

be taken for granted. 

A couple of years ago, we established 

the Aerospace Growth Partnership – the 

AGP – to provide a genuine partnership 

between business and government that 

could remove barriers to growth, boost 

exports and grow the number of highvalue 

jobs in the UK. 

The AGP has transformed the way in 

which Government now works with the 

UK aerospace industry. It’s certainly not 

been about industry laying down a list of 

demands to Government; nor has it been 

about Government trying to dictate to 

industry what it should be doing. Rather, 

it has been a collaborative process of 

us seeing what industry needs to do to 

increase its competitiveness and agreeing 

where Government has a role to play. 

We promised at Farnborough 2012 

to return as soon as possible with a full 

Aerospace Strategy. 

Following a lot of hard work in the 

AGP working groups over the succeeding 

months we published the Aerospace 

Industrial Strategy ‘Lifting Off’ in March. 

Lifting Off sets out an ambitious 

programme to keep the UK firmly 

at the forefront of world aerospace 

manufacturing and ensure that we can 

address the challenges of increasing 

global competition and changes in 

Michael Fallon and the MAA’s 

Andrew Mair at the Berlin airshow. 

“We’ve agreed to give 

industry the long-term 

certainty it needs to ensure 

that the UK remains one of 

the world’s most attractive 

locations for aerospace 

manufacturing.” 

technology. It’s based on ensuring that the UK 

has the capabilities to be at the leading edge 

of the design, development and production 

of wings, engines, aerostructures and 

advanced systems. These are the highvalue, 

technologically sophisticated parts 

of the aircraft where the UK can maintain a 

sustainable competitive advantage. 

We listened carefully to what industry said 

about the difficulties the short-term nature 

of public R&D support caused for strategic 

planning on projects; also the problems of not 

knowing how much public funding might be 

available to support private investment. So, 

we’ve agreed to give industry the long-term 

certainty it needs to ensure that the UK 

remains one of the world’s most attractive 

locations for aerospace manufacturing. 

The AGP recognises that the larger 

companies acting alone will not be able 

to make the product technology advances 

required to sustain the UK’s global market 

position. A step change towards an “R&D 

supply chain” is required. Yet the market 

is not currently creating this with sufficient 

urgency. To counter this, the AGP believes 

that industry and Government can work 

together to foster the development of new 

technologies, while the larger companies 

provide expertise and mentoring to 

encourage innovation from within the 

supply chain, especially SMEs. 

This is why Government is willing to 

invest in the AGP’s National Aerospace 

Technology Exploitation Programme. 

NATEP builds on the excellent regional 

technology exploitation programme 

previously run by the Midlands Aerospace 

Alliance in the Midlands, and the success 

of those projects promises much for the 

prospects of the 100 new technologies 

NATEP will bring closer to market. 

I look forward to seeing suppliers taking 

this opportunity to innovate and willl 

monitor the progress of the programme 

closely through the Aerospace Growth 

Partnership. 

www.michaelfallon.org.uk 


statistics 

THE FIGURES THAT COUNT 

MIDLANDS 

AEROSPACE 

IN NUMB3R5 

In this issue we shine our 

statistical light on the big picture 

of Midlands aerospace. And the 

cluster boasts some impressive 

numbers. Not only sheer size but also 

rapid growth. The MAA estimates that 3% 

of the whole world’s aerospace industry is 

located in our region. What lies behind the 

current boom is our focus on civil aircraft 

more than defence, a bias that is growing 

year by year. 

The numbers do throw up some surprises. 

Half the companies in the industry don’t make 

aircraft parts. And did you know the Midlands 

is home to six aerospace engine makers 

– partly linked to our automotive heritage? 

As well as Rolls-Royce, they are Cosworth, 

Cubewano, Ilmor Engineering, UAV Engines 

Ltd (all making UAV engines), and Roxel 

(rocket motors). 

Less surprising is the sheer influence of the 

Rolls-Royce powerhouse. It tops the list of the 

five biggest customers for Midlands suppliers 

(measured by number of companies with 

these customer approvals), followed by BAE 

Systems, AgustaWestland, Airbus and UTC 

Aerospace Systems / Aero Engine Controls. 

75% 

OF MIDLANDS AEROSPACE 

SALES TO CIVIL MARKETS 

(50% FOR UK AS A WHOLE) 

3% 

OF THE WORLD’S AEROSPACE 

INDUSTRY IS IN THE MIDLANDS 

45,000 

full-time equivalent jobs in the 

Midlands aerospace industry 

including supply chain 

168 

MIDLANDS AEROSPACE 

FIRMS SIGNED UP TO 

SC21 SUPPLY CHAIN 

IMPROVEMENT 

52% 

OF COMPANIES IN 

THE MIDLANDS 

AEROSPACE INDUSTRY 

MAKE FLYING PARTS 

MIDLANDS AEROSPACE 

BUSINESS TURNOVER 

GROWTH IN REAL TERMS 

213%SINCE 2005 

6 1/4 

aircraft engine 

makers in the 

Midlands 

OF THE REGION’S 

AEROSPACE EM- 

PLOYEES WORK 

AT ROLLS-ROYCE 


PROFILE 

View from the boardroom 

The right service offering 

is the key element 

MAA board member Simon Beech, divisional managing director of Nasmyth 

Group and managing director of Bulwell Precision Engineers, shares his 

thoughts on the industry and its challenges. 

Q. WHERE DID YOU START YOUR CAREER? 

A. I started with Lucas Industries as a 

graduate trainee, straight out of university. 

In common with most large companies, 

they moved me around so I got a grounding 

in automotive and aerospace. I started in 

HR and worked my way through into sales 

and marketing, business development and 

project management. After 17 years with 

Lucas, and at the point where its ownership 

was changing, I was head-hunted by 

Leonard Sedgwick, the founder and owner 

of Bulwell Precision Engineers. It was 

still a privately owned family business and 

Leonard was 80, so about three years 

after I joined, in 2003, we sold the 

business. Bulwell became the initial 

acquisition of the Nasmyth Group, 

and remains the largest. I sit on the 

Nasmyth board and take a lead role in our 

machining, surface treatment and OEM 

manufacturing business. 

Q. COULD SOMEONE STARTING OUT 

TODAY TAKE THE SAME PATH? 

A. Yes, I think so. Working in a large plc is 

a good grounding for anybody. You learn 

all the management tools and techniques 

and gain experience across the breadth 

of those organisations. Lots of people get 

trained in large businesses, then go to 

smaller ones where they can apply their 

experience. You probably couldn’t go the 

other direction, small to large, because the 

skill and knowledge base is different. 

Q. WHAT HAVE YOU LEARNED IN 

INDUSTRY THAT YOU COULDN’T LEARN 

IN UNIVERSITY? 

A. The mechanics of work and business. 

It tends to be about relationships, 

managing and interacting with people. 

You can’t learn that through a degree 

programme or anything else. 

Q. WHO HAS INFLUENCED OR INSPIRED 

YOU IN YOUR CAREER? 

A. I had a couple of mentors who 

encouraged me to explore more general 

business options; people in senior HR 

functions who’d made the transition 

themselves. They supported me to do 

my MBA to gain the knowledge needed 

in that sort of role. I’ve done the same, 

helping develop people from the shop 

floor to populate management roles in 

our business. It’s good to see people 

developing, and it’s good for the business. 

“Working in a large plc is a 

good grounding. You learn 

management techniques and 

gain experience across the 

breadth of the organisation.” 

Q. WHAT DO YOU SEE AS THE BIGGEST 

THREAT TO THE AEROSPACE INDUSTRY? 

A. That depends on the level. From 

the supply chain view, it’s ignoring 

globalisation. There aren’t as many prime 

customers in Europe as there were. You 

have to look beyond, to those you’re not 

familiar with. Globalisation is affecting 

what we do and how we respond to it 

is crucial. I see it as both a threat and 

opportunity. If you have the right skills and 

strategy in your business to go and explore, 

it’s an opportunity. If you don’t, it’s a threat. 

Q. IS THERE A SECRET TO GAINING 

COMPETITIVE ADVANTAGE? 

A. Having the right service offering is 

the key element. If you can make your 

customer’s cost of acquisition better, 

your UK-made goods will be affordable. 

Exporting is a big part of our business. 

Export volumes change; overall it is 

close to 20%, however when you look 

where our products ultimately go on 

an aircraft or engine, and after our 

customer exports their product, our export 

percentage is closer to 70% of output. 

That’s got to be good. 

www.bulwell.com 


FOR YOUR DIARY 

ONLINE: WWW.MIDLANDSAEROSPACE.ORG.UK/EVENTS 

CALENDAR 

PARIS INTERNATIONAL 

AIRSHOW 2013 

17-23 June 

Le Bourget airport 

exhibition site, Paris 

The world’s largest event 

dedicated to the aviation and 

space industry. 

AIRLINE ENGINEERING 

AND MAINTENANCE 

SAFETY 

10-11 July 

Crowne Plaza London - 

The City, London 

Key issues and best practice in 

safety and regulation, fatigue, 

communication etc. 

AERO ENGINEERING 

SHOW 2013 

12-13 November 

NEC, Birmingham 

Exhibition of leading technology 

and engineering supply chain 

programmes in design, manufacturing 

and machining etc. 

About the MAA… 

The Midlands Aerospace 

Alliance (MAA) is the voice 

of companies in the British 

Midlands supplying global 

aerospace. Its 290 corporate 

members range from global 

aerospace players to SMEs. 

The MAA board comprises 

senior managers from Aero 

Engine Controls, UTAS 

Actuation Systems, Meggitt, 

Moog Aircraft Group and 

ADS MEMBERS FORUM 

25 June 

Manufacturing Technology 

Centre, Coventry 

The first of two events designed 

to keep ADS members abreast 

of developments emerging from 

the Aerospace and Defence 

Growth Partnerships. 

RUSSIAN WORLDWIDE 

AIR SHOW - MAKS 2013 

27 August – 1 September 

Zhukovsky, Moscow 

Russia’s premier international 

aviation and space exhibition: 

an opportunity to establish 

contacts at various levels and 

find new business partners. 

For further 

information and to 

book your place at 

an MAA event, please scan 

the QR code or visit 

www.midlandsaerospace. 

org.uk/events 

Rolls-Royce, elected supply 

chain representatives and key 

regional partner bodies. 

For additional copies of Midlands Aerospace, or to add your 

colleagues to the distribution database, please contact the MAA 

by any of the means below. 

NEW MEMBERS 

The MAA welcomes the following new members 

Aerocom Metals 

Coventry 

Steel stockholder. 

Altran 

Coventry 

Civil and military 

aerospace systems 

and products. 

Ansys UK 

Sheffield 

Engineering 

simulation. 

BIL International 

Logistics 

Halesowen 

Logistical solutions. 

Dot Net IT 

Halesowen 

ERP software 

implementation 

and business 

consultancy. 

Durr Ecoclean UK 

Warwick 

Cleaning, automation 

and filtration 

installations. 

Everards Quality 

Consultancy 

Sutton-in-Ashfield 

Quality improvement 

specialist. 

Ilmor 

Engineering 

Brixworth 

High performance 

engineering. 

IngPro 

Shrewsbury 

Business 

consultancy. 

Kyocera 

Unimerco Tooling 

Fradley 

Tooling systems for 

composite and metal 

applications. 

Lockton 

Companies 

Birmingham 

Independent global 

insurance broker. 

Macfarlane 

pAckaging Design 

and Manufacture 

Coventry 

Bespoke packaging. 

Meadowbank Vac 

Alloys 

Rotherham 

Recycling solutions 

for complex alloys. 

NMB-Minebea UK 

Lincoln 

Manufacture of 

bearing products and 

assemblies. 

North 

Warwickshire & 

Hinckley College 

Hinckley 

Further education. 

oXFord AVIATIon 

Oxford 

Supplier of 

consumables for 

civil and military 

aerospace 

applications. 

PAB Coventry 

Coventry 

Prototype and 

production sheet 

metal fabrication. 

www.midlandsaerospace.org.uk/join 

pArmelee 

Walsall 

Manufacture of safety 

eye wear. 

RoYAL Bank of 

Scotland 

Birmingham 

Banking services. 

Snap-On 

Industrial 

Kettering 

Tools, tools 

storage and torque 

equipment for the 

aerospace industry. 

Test & Measure 

Experts 

Halesowen 

Test and 

measurement 

automation. 

Walkers 

European 

Express Services 

Dudley 

Express light haulage 

transport throughout 

UK and Europe. 

Scan to visit the searchable database of all MAA member companies. 

If you have a query or suggestion 

that you would like to make, please 

contact the MAA. 

T: +44 (0) 2476 430250 

F: +44 (0) 2476 430251 

E: info@midlandsaerospace.org.uk

Aerospace

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