Aerospace cluster ‘an industry role model’

Jun 16 2009 By Alex Turner

THE North West’s aerospace supply chain should be used as a transferable blueprint for other industries around the world, a key industry leader will tell the Paris International Air Show today.

North West Aerospace Alliance chief executive Martin Wright will explain to delegates how the region’s aerospace sector is transforming itself to meet the changing shape of the international supply chain.

Mr Wright said: “I will be setting out our vision for the future, and how we aim to develop the North West supply chain to meet the future shape of the global industry.

“The North West is truly leading the way in cluster development in the UK, and this is largely thanks to the efforts put in by the supply chain in this region, working with the NWAA and prime contractors such as BAE Systems, Airbus and Rolls-Royce.

“We have a supply chain development programme which is about changing companies’ behaviour.

“Companies are competing in a world market and it’s extremely competitive. Our phase one is about developing companies.

“Phase two is about looking at the aerospace cluster in the North West. It’s not just a collection of companies, it has universities, science parks and other organisations involved. The next phase is about how you develop that cluster to work as a whole, so when a country wants aerospace capabilities, we want them to see a whole chain.”

More than 20 companies from the region, including Speke-based Aerogistics, are in Paris this week. Previous years have seen major contracts secured and company and regional profiles enhanced, although the recession has created a nervousness ahead of the show.

Airbus chief executive Tom Enders said he is “aiming at 300 [orders], but it could be a number considerably lower”.

Both Airbus and rival Boeing have suffered as travel demand has dried up in the global economic downturn, prompting several airlines to cancel or defer orders. However, Airbus, which manufactures wings for its A380 aircraft at Broughton, Deeside, has said it has significant overbooking for 2010 and 2011, so its order book will remain well-filled.

“Paris is the flagship industry event of the year, and the best platform in the world to showcase the terrific work being done in the North West,” Mr Wright added. “It is vital for our region to have a major presence.

The aerospace sector has an annual turnover of £7bn in the North West, employing 48,000 people at 800 companies. It accounts for one-third of the UK sector, which itself is the second- largest in the world.

“Aerospace jobs contribute £75,000 per job in gross-value added,” said Mr Wright. “The average for a job in industry is £15,000 – that’s why we have to protect the industry.

“We can’t afford that level of skilled jobs to go. The industry is very important to the North West, you could never replace the industry if we let it decline.”