At the Farnborough International Airshow, all attention was focused on the effect that Brexit news could have on orders from other countries. All this, amidst the recognition of the UK aerospace industry as the second largest in the world, behind only the United States, both in terms of cluster size and manufacturing volume, and in particular the South West region of the UK for its high engineering relevance.
We need to continue to demonstrate the collaborative nature of the UK business community.
Despite rain disrupting the programme more than once, the 2016 edition of the Farnborough International Airshow weathered the storm very well and was an incredible success, with confirmed orders for aircraft, options, engines and supply chain elements totalling $124 billion, with 70 % of the orders coming from outside the UK.
The companies I spoke to at the show had positive outlook also in the long termWhile two intermediaries, whose role is to identify potential opportunities for foreign direct investment in the UK, told me that since Brexit they had seen an increase in requests to assess investment opportunities in the UK.
Why is this happening and how can we sustain and enhance it? The keys to the South West region's success are diversity, technical competence and an availability of talent unmatched anywhere in the world. Let's take a look at the composition of the aerospace cluster: we have the National Composite Centrespecialising in the field of composite technologies, which can rapidly design and manufacture lightweight and strong materials at the cutting edge of technology, thus helping to push the boundaries of what an aircraft can do; CFMS (Centre for Modelling & Simulation)The European Commission's "Computer modelling and simulation" experts, who can help design new and sophisticated aircraft; the wind tunnel Airbus' low-speed closed-loop track, which is used for everything from real-world aeronautical product development to aerodynamic applications for Formula 1; the Bristol Robotics Labwhich specialises in autonomous and robotic systems; and, also from Bristol and Bath, the most recent developments in virtual reality (VR), which allow both training and testing to be completed virtually in a safe and very cost-effective environment (and without disrupting the normal business of an airline).
It is therefore not surprising that each of the 15 international aerospace giants, including Airbus, GKN Aerospace and Rolls Royce, have part of their activities in the Bristol and Bath region. On the other hand, this focus on cutting-edge research and development shows no signs of slowing down. Take, for example, Airbus, which is building a VR hall and a high-tech wing development centre in the area. All this adds up to a real aerospace powerhouse, the largest in Europe, with 59 000 jobs for skilled labour and a value in excess of £7 billion.
So what do we need to do to build on this success post-Brexit? What we have always done, which is to innovate along the entire aerospace supply chain, to bring all these companies together in a network that provides excellent engineering and to continue to grow on this basis. To be successful, it is not enough to think only about the end product or the individual elements, but we must also take into consideration what the South West region has to offer along the entire production chain.
In order to help this mission retain its pioneering role, local industries and the public sector have initiated iAeroa collaboration scheme between the main players in the aerospace sector in the region to form a regional platform for innovation and growth. Outside the UK there are no equivalent initiatives to iAero, which is designed to address innovation, R&D, skills and supply chain development in an interconnected way. The South West is ahead of the curve in initiatives such as this, forms of cooperation that we need to build on to ensure the success of a long-term strategic approach to developing the capabilities of the South West aerospace sector.
We also need to capitalise on the fact that Brexit has the potential to open up new markets not subject to the restrictions of the EU agreements. The aerospace industry has always been global, so it is important that we look at the world stage and focus on delivering technology-driven solutions that can solve the challenges that the aircraft of the future will face.
The Farnborough International Airshow is an extraordinary advertisement for the UK aerospace industry. We now need to continue to demonstrate the collaborative nature The region's business community, where interconnected sectors work together to develop innovations, open up opportunities in new markets and continue to attract investors who serve the global market but do business from the UK. It is an opportunity we cannot afford to miss and one that Brexit should not prevent.
