S P E C I A L P U B L I C A T I O N

MARCH 2014

AerospaceWhos who in

Midlands

2 THURSDAY, MARCH 27, 2014 whos who IN AERosPACE MIDLANDs

Like the Great Lakes region in North America and the Paris region in France, the Midlands hosts one of the worlds major aerospace clusters that does not make aircraft.

Yet the Midlands is home to over one quarter of the Uk aerospace industry, 7 per cent per cent of europes and 3 per cent of the worlds, with over 45,000 full-time-equivalent jobs due wholly to reve-nues from manufacturing for global aerospace markets without count-ing the regions airports and military bases.

Several major global aerospace players have important operations in the region. The principal hub of the cluster is the heart of civil aerospace operations at Rolls-Royce, the worlds second largest manufacturer of air-craft engines, in Derby. Rolls-Royce accounts for one in four of the clus-ters jobs.

Radiating from this hub across the east and West Midlands are the sup-ply chains that define the clusters nerve system, linking the local nodes where aero-engine parts are made and where electronic and mechani-cal systems that control how the engine operates are designed and built.

The Midlands Aerospace Alliance was formed in 2003 to support and represent the aerospace industry across the Midlands region.

More than 40 people serve on the MAA board or one of our three work-ing groups a number maintained since 2004. This network lies at the heart of the MAAs success.

We became a Company Limited by Guarantee (non-profit limited com-pany) in 2005 and invited Midlands aerospace companies to join as for-mal members. Later that year we held our first elections to broaden board representation.

in 2009 the MAA moved from Pera in Leicestershire to its current offices in Coventry.

Like the aerospace alliances in other Uk clusters, the MAA works closely with the national body Aero-space, Defence, Space and Security (ADS).

Two facts indicate how much our members value our services:

n At the Farnborough international Airshow in 2012, the MAA had more member companies exhibiting on its stand than any region or country in the world bar one, the Uks North West Aerospace Alliancen in 2014, the MAA has more mem-ber organisations than any regional aerospace alliance in the world bar one, Frances Aerospace Valley

(which runs from Toulouse to Bor-deaux)

We would like to think this is quite good, considering that we dont actually make any aircraft in the Midlands.

The founding members of the Mid-lands Aerospace Alliance in 2003 were:n Advantage West Midlands (now closed)n Dunlop (now Meggitt)n east Midlands Development Agency (now closed)n Goodrich (now Aero engine Con-trols)n Rolls-Royce

Membership is open to all compa-nies and organisations that are part of the aerospace industry or desire to become part of the industry. Associ-ate membership is available to com-panies outside the Midlands region.

A small subscription fee and annu-al renewal were introduced in 2007.

The MAA currently has 300 mem-bers with 60 per cent of members make flying parts, 40 per cent make equipment for design, testing, man-ufacturing or provide specialist serv-ices.

Global hotspot for Aerospace excellence and innovation

Andrew Mair who is the Chief Exec >of Midlands Aerospace Alliance

At the Farnborough International Airshow in 2012, the MAA had more member companies exhibiting on its stand than any region or country in the world bar one

Andrew Mair

enquiries@nasmythgroup.com www.nasmythgroup.com

Nasmyth Group is a cohesive group of engineering businessesthat consistently provides high quality services and products.

With its range of complementary disciplines, the Group can offer its customers all the benefits

of a truly optimised, single source, supply chain.

From the smallest individual machined components to large, complex, multi-part

assembled products and structures.

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10th AnniversAry

We started with an altimeter aboard an 1860s hot-air balloon. Today our products continue to

buoy the group through their leading-edge technologies designed to operate in extreme conditions.

Meggitt has come a long way since its first constituent company, founded by two immigrant Italian craftsmen in London, began making aeronautical instruments.

Through the decades we have developed inventions that have transformed our industry sectors. Along the way we have made acquisitions that, in turn, have transformed our company.

Inventions by companies that are now part of the Meggitt brand included spark plugs and pneumatic tyres to help tame the new-fangled automobiles of the first decade of the 20th century. Specially-developed alloys made possible the engines of the new generation of Second World War fighter aircraft. Post-war Meggitt equipment went into the stratosphere with Concorde and to the moon with the Apollo programme.

Traditionally, conflicts accelerate technical progress and bring ingenuity to the fore. The Second World War, for example, saw tyre specialists Dunlop branching out into exotica such as inflatable dummy vehicles, while sparking plug manufacturer Lodge won the accolade of a public endorsement of its products by President Roosevelt in an address to Congress.

Peacetime progressIf the 1940s brought products born of dire necessity, the 1950s saw the creation of several companies that operated at the frontiers of science and which eventually became part of the Meggitt family such as Denmarks ferroperm (piezocer-amics), Switzerlands Vibro-Meter (precision measuring) and Spains Piher (controls and sensors).

The 1960s also brought contracts for machines that pushed the envelope, such as the worlds fastest aircraft, Lockheeds SR-71 Blackbird reconnaissance aircraft and the largest valve ever produced for aerospace purposes, capable of

handling 35,000 gallons of liquid

oxygen per minute on NASAs Saturn V rocket that launched the Apollo moon missions. The Bestobell group of engineering companies that became part of Meggitt had no fewer than 3000 components on Concorde.

Ironically, given the age of many of Meggitts constituent companies, that name did not appear until 1964, when Yorkshire-based Willson Lathes bought Meggitt engineering of Dorset but ended up taking the latters identity.

Our history has not been one of untrammelled expansion. A potentially terminal dip in fortunes was averted by a 1984 management buy-in. Just two years later, however, Meggitt daringly bought the Bestobell group, three times our size. Similarly, in 1999 we acquired the much larger California-based Whittaker Controls, which brought a much-increased presence in the aftermarket business and significantly grew our business with major aircraft manufacturers and their customers.

Just as wars proved the spur for technological advances, major deals such as Bestobell and Whittaker proved to be transformative acquisitions, allowing us to rise to new heights.

Buying new companies has filled gaps in our capabilities or extended those capabilities into adjacent sectors as varied as simulation products for firearms training or engine condition monitoring and diagnostics.

Across the Atlantic fROM the mid-1980s an increasing amount of our business was either sourced or located in the US, with acquisitions being just as varied and exotic as in the UK. endevcos ultra-rugged accelerometers were

capable of measuring the massive loads

generated by explo-

sions. engineered fabrics brought crashworthy aircraft fuel cells to the table.

This ability to push the technological envelope continues to bring profits, as does the companys mix of military and civil aircraft products, as well as

high-end technology and

everyday spares. A similar balance between the UK and US sides of the business adds further stability.

This poise between geographic regions and different industry sectors gives us the ability to ride out dips in workload. Military and civil aviation markets are seldom in the doldrums simultaneously.

Geographically, we are well-positioned for the future. Our

businesses in the US and five

european countries are complemented by plants and offices in Mexico, Brazil, China, Vietnam and Singapore, tapping into the planets surging new economies.

Major acquisitions have boosted our core capabilities and corporate growth to the point where we are now a fTSe 100 company, with our revenues increasing from 386 million in 2003 to 1,637 million in 2013 a 400% increase.

The horizon beckons NeW sectors are constantly opening up. We have an emerging capability in the energy industry. Our traditional areas of expertise, such as monitoring, sensing and smart controls, are of great interest to power generators. Climate change will increasingly demand clean energy technology. Integrat-ing fluid control valves with sensors could provide control solutions for the industrial gas turbines that provide rapid output boosts to cope, for example, with demand spikes in power stations.

Innovations? Almost too many to mention:

n Our new electro-thermal systems to keep aircraft wings free of ice

use up to 50% less power but deliver 100% more control than traditional hot air systems.

4 THURSDAY, MARCH 27, 2014Whos Who IN AERosPACE MIDLANDs

In the beginning was the altimeterThrough the decades we have developed inventions that have transformed our industry sectors. Along the way we have made acquisitions that, in turn, have transformed our company

Meggitt revenues haveincreased from 386 million in 2003 to1,637 millionin 2013 a400% increase.

THURSDAY, MARCH 27, 2014 5

In the beginning was the altimeter WHOS WHO IN AEROSPACE MIDLANDS

n Modern airliner turbofans operate at 900C to optimise efficiency. So do our sensors, allowing them to be placed at the heart of the engine and alert maintainers to incipient wear-and-tear or potentially disastrous failures.n We were the first to put carbon brakes on a commercial airliner Concorde, no less and continuous development is creating lighter, longer-lasting, higher performance successors.n When things go wrong in flight (or on the ground) we are at the front of the field in developing fire-extinguishing agents that not only knock down flames but are also environmentally friendly. (Current industry standard Halon is fantastic, but ozone-depleting.)n And next-generation digital fuel gauges can measure echoes lasting one millionth of a millionth of a second as they bounce off the fluid surface in an aircraft fuel tank. n We supply the piezo-ceramics that form the basis for one of the most exciting emerging medical technologies, high-intensity focused ultrasound, whose qualities include the ability to stop glaucoma in its tracks.

In the pipeline is a plethora of new products and techniques, currently being honed in collaboration with some 30 of the worlds leading universities and research institutes.

Its a long way since altimeters in balloons.

a plethora of new products and techniques in the

pipeline, currently being honed with some 30

of the worlds leading universities and research

institutes

Geographically, we are well-positioned. Businesses in the US and five European countries are complemented by plants and offices in Mexico, Brazil, China, Vietnam and Singapore, tapping into the planets surging new economies

6 THURSDAY, MARCH 27, 2014

Manufacturing Conference2014 - How to enter newSupply Chains

www.mymas.org | advice@mymas.org | 0845 658 9600 @mas_works MAS on LinkedIn

To find out more information on the conference and details on howMAS can help your manufacturing business grow, call our nationalhelpline on 0845 658 9600 or email advice@mymas.org

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Thinking of entering a new supply chain? not sure what isrequired? Join us at our Manufacturing Supply Chain Conferencewith a special focus on Aerospace, Automotive and Offshore Wind.

Hear from industry experts including Dr Andrew Mair, CEO of MidlandsAerospace Alliance, and real life company case studies on their supply chainexperiences.The MAS conference, will also give delegates the chance to break out into anumber of interactive workshops. These will focus on Learning more aboutGROW:OffshoreWind, Getting to grips with TS16949, Introducing SC21, agrowing pre-requisite for operating in the aerospace and defence sectors andUsing composites in Auto & Aero delivered by Professor Ken Kendall, Professorin Structural Composites, from WMG at the University of Warwick.Where: Royal Air Force Museum Cosford, ShifnalShropshire TF11 8UPThe event is FREE and open to SME Manufacturers in the WestMidlands. Places are limited and will be allocated on a firstcome first serve basis. Book now by visiting www.mymas.org/events/mas-supply-chain-conference-how-to-enter-new-ones

whos who IN AERosPACE

Making the most of new opportunities in automo-tive, aerospace and offshore wind will form the focal point of a major new conference by the Manufacturing advisory Service (MaS).

Manufacturers from across the West Midlands are being urged to attend the free event at RaF Cosford (april 30th), which will detail how companies can prepare themselves to take advantage of bn of new contracts to supply components into next generation vehicles, aircraft, turbines and ancillary equipment.

There will also be an introduction to the recently launched gROW:OffshoreWind initiative, which is designed to provide manufacturers with access to technical advice, innovation support, supplier matching and grants of up to 500,000.

The Uk is currently sitting in a very good position for attracting new manufacturing investment and we want to make sure our smaller companies also benefit from it, explained Lorraine Holmes, area Director of MaS.

She continued: This event will look to outline the opportunities, but importantly also examines the challenges of entering these markets, the type of quality accreditations you may need and other nuances that could mean the difference between winning work or not.

We are delighted that two major Uk manufacturing companies will be presenting their views and

providing an update on how to take advantage of the upturn in key sectors. They will then be joined by two SMEs, who are currently supplying into these markets so they can give an idea of what its like at the coalface.

John Russell, the former Chief Executive of Manganese Bronze, will be hosting the event and bringing his years of automotive and senior

level manufacturing experience to the discussion.

The MaS conference, which is being sponsored by Lloyds Bank, will also give delegates the chance to break out into a number of interactive workshops.

These will focus on Learning more about gROW:OffshoreWind , getting to grips with TS16949, introducing SC21 and Using

composites in auto & aero delivered by Professor ken kendall, Professor in Structural Composites, of WMg at the University of Warwick.

There are 150 spaces available and these are limited to manufacturing companies only. To book your attendance, please visit http://www.mymas.org/events/mas-supply-chain-conference-how-to-enter-new-ones.

Supply chain conference set to outline the growth markets

Cab Automotive in Tipton is one of the companies already making the >most of the automotive boom

Lorraine Holmes, area director for MAS in the North and West >

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Advanced chemical etching (ace) is one of the largest specialist metal component manufactures in europe, innovating and developing a number of new manufacturing processes to meet the needs of their national and International customers. ace has scientifically developed innovative new proc-esses to etch corrosive resistant exotic materials including Titanium (TiMe), nitinol, elgiloy, Inconel and aluminium (acme), alongside more everyday materials including

the various Stainless Steel grades, coppers, Mild Steel etc. advanced chemical etchings bespoke manufacturing facility in Telford is equipped with the latest produc-tion machinery, a dedicated laboratory that is continually developing new process param-eters, all complemented by a full range of the latest state-of-the-art measuring equipment.

The manufacturing production facility is designed for the flexibility required to serve the specific demands of its customers, for many

different types of components, with over 1500 available material types. The company has pioneered the development of its photo etching technology, mechanical forming as well as many other in-house processes appreciated by customers in many industries includes electronics, Medical, aerospace, automotive, Military, Precision engineering, Renewable energy and other High Tech` industries.

Since their inception 15 years ago ace has been at the forefront of the Photo etching industry by constantly challenging the normal process route. By undertaking continuous research and development, new chemistry and process capabilities are constantly being developed for the manufacture of competitively priced burr and stress free 2 and 3-d components into a wide variety of industry sectors. From prototypes through to pre-production, and ultimately volume production, ace is able to supply bespoke components in short timescales utilising low cost digital photographic tooling. Their reputation of service and quality leaves their competitors standing.

ace currently holds ISO 9001, ISO14001, as well as a host of customer accreditations and is currently working towards securing TS16949 and aS9100 to support increasing business in the automotive and aerospace sectors. Through continuous Quality Improvement they seek to provide levels of quality that exceed their customers expectations. close liaison with the customer at every stage ensures full traceability and allows ace to offer value design and manufacturing, often securing significant cost downs in the process.

The company is currently undergoing an extensive expansion program which will more than double their capacity. The manufacturing site in Telford, Shropshire will increase its footprint to 20,000 square feet. n Want to know more? Please visit www.ace-uk.net

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THURSDAY, MARCH 27, 2014 9 WHOS WHO IN AEROSPACE MIDLANDS

10 THURSDAY, MARCH 27, 2014 WHOS WHO IN AEROSPACE MIDLANDS

The UK has the second largest national Aerospace industry in the world with an annual turnover of around 24 billion per annum and Midlandss businesses have a large share of this market. The sector incorporates some of the most skilled and high value engineering processes of any manufacturing specialism not to mention the highest levels of quality and certification.

With this in mind, it is no surprise that Aerospace programmes have long lead times, complex supply chains and long term production schedules. These factors combine to make the Aerospace Industry incredibly important to the UK for delivering GDP and growth, for preserving skilled labour and for delivering export product.

Andrew Garvey, National Sector lead for Aerospace at RBS commented that The prospects for UK Aerospace are excellent with new platforms and new engines just around the corner.

Furthermore, CBI analysis indicates that even if the UK maintains its current market share, air traffic growth in Asia alone has the potential to contribute an extra 4.7 billion in UK annual exports over the next 10 years.

This presents many opportunities for those in Aerospace supply chains and such companies should now be thinking about the growth and investment required to put them in the best possible position to both retain and win contracts. There will undoubtedly be competition for business and this competition will come from both domestic firms and from further afield. At the same time, the prospects for UK economic growth appear strong and this will undoubtedly build confidence and drive interest in acquisition activity.

The challenges created by the skills gap are well publicised and receiving considerable OeM [Original equipment Manufacturer] attention. The Apprenticeship Academy at Rolls Royce offers 200 places a year ( Source: The Apprenticeship Academy 2013) whilst the Sharing In Growth programme offers leadership, strategy and business process training, which the supply chain may not otherwise be able to access.

Rupert Boddington, RBSs Aerospace Sector lead for the Midlands, observes: OeMs are also looking for investment in new technologies to improve both the performance and cost of its products, and speed to full production. Recent survey results suggest that there is a greater willingness to commit to this investment.

The Aerospace Growth Partnership has launched the National Aerospace Technology Programme (NATeP) to enable the development of new technology. To support this activity RBS has brought together the skills of its Trade Finance team and Lombard Asset Finance teams to create a new

product, Capital Import Finance. This will make it easier for our customers to buy new machinery from overseas by mitigating the risks of purchasing from overseas and by providing appropriate long term funding

The drive to strengthen the supply chain will also lead to companies organising themselves differently. Boddington commented that OeMs

would rather collaborate with fewer big suppliers than a large number of small firms in order to keep their transaction costs low. We are likely to see increased collaboration between smaller suppliers through the creation of more consortia, JVs and ultimately mergers, whereby SMes combine capabilities and increase their chances to win more contracts from OeMs

however, with their make it happen attitude, the Midlands manufacturers will continue to turn challenges into opportunities, Garvey is convinced, pointing at the ernst & Young UK Goods export Monitor that predicts an 8.1 per cent growth for goods exports from the West Midlands between 2012 and 2017, growing faster than any other UK region and with annualised

growth of 4.8 per cent in engineering goods exported, worth 6.9 billion in 2017, compared with 5.5 billion in 2012. The east Midlands is following this trend, with forecast growth of 6.1 per cent by 2017.

The nature of the Aerospace sector means there can be a myriad of challenges to doing business Imports, exports, Foreign Currency flows, giving credit to customers, securing credit for trade, investing in R & D, recruiting apprentices, buying or leasing machinery and managing cash flow to meet growth to name a few. At RBS we recognise these challenges and our Relationship Directors work hard to offer appropriate solutions to our customers.

RBS has specialist Relationship teams focussing on the Aerospace sector. We believe that this helps us to better understand the opportunities and the challenges and this puts us in a better position to be able to support you. Additionally, concentrating on the sector allows us to work more closely with key industry groups such as ADS, the Midlands Aerospace Alliance and government initiatives such as the Aerospace Growth Partnership. We recognise that the Aerospace Industry has a strategic part to play in UK growth and that it is key to the UKs competitive advantage in a growing global market place.

UK is a leading light in the global aerospace industry

Prime Minister David Cameron meets apprentice Aiden Rogers during a visit to Rolls Royce Learning and Career Development Centre at Derby >

To find out more >about how RBS can support your business, please contact us: Andrew Garvey (left) is National Aerospace sector lead for Aerospace at RBS. Andrew can be contacted on 0207 672 2541or by email to andrew.garvey@rbs.co.uk Rupert Boddington (right) is Aerospace sector lead for the Midlands. Rupert can be contacted on 0121 262 7419 or by email to Rupert.Boddington@rbs.co.uk

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