Flying visit to ‘World’s biggest show’
27 July 2010
An astonishing 835 commercial aircraft were estimated to be sold at Farnborough Air Show, giving a clear indication of the health of both industry and event.
We asked occasional contributor and industry veteran Mike Judd to assess last week's show from the perspective of the electronics industry, and the following is his report.
Writing in the Farnborough Airshow catalogue, Prime Minister David Cameron wrote: ‘This Airshow is a great showcase for the latest innovations in aviation technology and advanced engineering. Also that even in a recession, a vibrant UK aerospace industry has continued to thrive - supporting nearly a quarter of a million jobs right across the country. Its success as a high-tech exporter will be vital to our economic recovery.’ He also wrote that he is determined to make Britain the most technology-friendly country in the world.
Certainly the Airshow was very busy and even on the first day, massive orders were being announced for aircraft.
With 267 exhibitors spread over four massive halls, plus the usual pavilions, impressive hospitality chalets and the static plane displays, it’s an awesome view arriving on site.
At the ADS Aerospace, Defence & Security Trade Organisation conference that I attended on the first day, the Rt Hon Dr Vince Cable MP, Secretary of State for Business, Innovation and Skills and President of the Board of Trade overcame the challenges of heavy traffic on the first day by arriving early on a motor cycle taxi.
Before his introduction it was stated that: “This was an important time in the new government’s calendar, as it considers how to create the conditions necessary for growth, an area where the aerospace industry feels it can, absolutely, deliver. There is much to celebrate in the aerospace industry at this Air show. The number of firsts in aerospace, all with significant UK technology and industrial content are a fantastic advertisement to the capability of UK industry. We welcome back commercial aircraft such as the A380, the very first visit of the Boeing 787 Dreamliner to the UK and the fast developing Airbus A350 extra wide body and C Series programmes as they start to bring next generation benefits in efficiency, emissions, noise reductions and improvements in travel experience.”
Vince Cable responded: “Its great to see so many exhibitors here – both British and international. This is – I am told – the world’s largest temporary exhibition. Farnborough is a great showcase for the latest innovations in aviation technology and advanced engineering. I guess many of us still have a little boy inside us, and it is a great thrill for me to be at my first airshow since I went to those on wartime aerodromes around York half a century ago - to see Vulcans, Victors, Hunters and Cornets: the exciting new planes of that era.
“Aerospace has a proud history in the UK. It earns more than £20bn a year - almost a fifth of the global market. There are 3000 UK firms in the sector – the largest in Europe. Of course, aerospace and defence are increasingly driving the forefront of the space and security industries. It's not widely known that the UK builds the entire payload for a quarter of the world's communications satellites and is home to arguably the world's most successful small satellite manufacturer – Astrium.
“Even through the recession, where a great many industries suffered, aerospace has supported a quarter of a million jobs. For the future, the aerospace industry matters for some important reasons. It’s at a technological frontier, tackling a huge and inevitable technological transition to low carbon. The gains to the most successful movers in that transition can be huge and British firms have the potential to be part of that.
“It is UK-based teams that are making some of the most exciting breakthroughs on cutting greenhouse gas emissions and noise pollution - and you can see some of that work on display here. This is important to me, as I represent one of the Heathrow constituencies.
“It’s a big exporter – many of the companies here today are British firms making a global impact. We need that. One of the key ways in which we can rebalance the UK economy after a decade of debt-fuelled – and frankly, illusory - growth is by rebuilding our export strengths. British aerospace is right at the centre of this. After pharmaceuticals, this is the UK sector that spends the most on research and technology, re-investing about 10% of turnover.
“We are a global supply chain economy. Our supply chain niches are all linked to high levels of knowledge and technology and the value that it adds. So the commitment to knowledge and technology driven manufacturing – and all the service industries that support it – is something I want to back to the hilt. We are committed to making sure that the research base, and the skilled people that the industry needs to compete are in place.
“Big sectoral employers like Rolls have extensive and effective graduate and apprentice programmes and these are things that we are going to keep backing, even through a time of budget constraint. Because they are the foundations of tomorrow’s success. It is no secret that when I first came into power one of the first papers on my desk was asking me to find almost £1 billion. We have recycled vast amounts of our budget to put funding into apprenticeships. And it’s also important to note that the sector is a huge regional employer and an engine of some of regional economies. After a decade in which too much growth in the UK has slid inexorably into the South East, our strengths at Derby and Filton and Broughton are valuable regional sources of strength and growth.
“Of course, this industry faces some challenging times. But the fundamentals of what it does and the demand for it should be cause for inspiration. The industry reckons passenger numbers will continue to grow at more than 4% a year for the next fifteen years – higher in Asia and the BRICS. [Airports Council International 2008]. We’re going to have to consistently push down the impact of that growth on the environment; the technological advances this sector is on the cusp of should make it one of the most exciting in advanced manufacturing.
“And I see part of the challenge of achieving that in the work we are doing to produce a new generation of British engineers and aviation experts with the skills and vision to drive it. With that in mind, I have agreed to chair regular meetings with aerospace business leaders to focus on major strategic issues facing the aerospace sector. This will set the direction for action by a wider business/government Growth Partnership group chaired by Mark Prisk, involving ADS and representatives across the UK aerospace supply chain, to drive enterprise and growth. So you are going to be seeing more of me.
“I’m on my way to take a look at an Airbus A380. The A380 is as good an example as any of the strength of the Aerospace Industry in Britain and wider Europe. Wings designed by Airbus at Filton and made by Airbus at Filton and Broughton, Trent 900 engines made by Rolls-Royce and nose-landing gear made by Messier-Dowty. Some 400 UK companies supply equipment for the A380 programme. It’s big, it’s the greenest plane ever of its scale and it is going to change the way we fly and I’m proud that 40% of it is UK-made.”
After this introduction from Vince Cable, I visited some of the electronics companies present, including Amphenol, AWS Electronics Group, AWS Cemgraft, EADS, Ferranti, Goodrich, Jabil, Meggitt, New Chapel Electronics, Rolls Royce, STS Defence, Ultra Electronics; just some of the companies I visited, wearing out shoe leather in the exhibition area.
I met with Martin Gaffney, Sales Manager at Jabil Ltd. Although it was only half way through the show he summed up his view. “Farnborough Air Show for Jabil is about showing presence and commitment to the marketplace. We understand that while we are not directly going to work with a prime company such as Boeing or Airbus, our market is the sub prime companies and top level OEM providers that require the services of a global tier one manufacturing provider to underpin their supply chain and understand the flow down the requirements of the major product companies - and to this end the discussions we have had this week have affirmed this analysis.
“In the days we have been at the event, we have spoken to many of the major players in the Military and Aerospace market who have shown a real willingness and excitement about the offering that Jabil can bring to their supply chain requirements in cutting cost, waste, increasing quality and developing new projects to their marketplace. When this is underpinned by our current customer portfolio and the growing reputation of the good work accomplished to date, this has allowed us to demonstrate a real strong message of how we can help companies at the show.
“In a challenging marketplace it was also compelling to hear stories from other exhibitors on market intelligence, new projects that are being released, changes of personnel and general spending patterns – all of this would not be gleaned from not being at the show. All of this information will then be subsequently aligned with our business plan and form the framework of the model for 2011 where we really hope to see major expansion into the Mil/Aero market both in the UK and the USA. Our customer feedback and this market knowledge is helping us drive ‘best practice’ changes to our manufacturing footprint to encompass the requests of these types of companies within our manufacturing areas whilst complying with all classifications of UK and US restricted manufacturing – including ITAR and Export restrictions.
“We expect that spending on many government projects may start to be under scrutiny as the economic landscape changes in the UK; however, by working with a committed, cost effective and high quality provider like ourselves, we believe that we can really provide a long term partner for the marketplace in the UK, EU, US and beyond for many years to come.”
This is a BIG Show, it is international, popular and successful. I can’t wait for 9-15 July 2012 for the next Farnborough Show!
Mike Judd is an independent marketing specialist. All images courtesy of Mike Judd.
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