Reaching for the Skies: Scotland's aerospace, defence and marine sector gears up for future growth

Scottish Enterprise today (Wednesday 28 October) launches a new industry-led strategy for the Aerospace, Defence and Marine Industry.

The sector employs over 22,000 people and supports the jobs of a further 30,000 within Scotland, and this strategy – developed by the leading figures within the sector –   outlines an action plan to advance the industry within Scotland.

The plan aims to encourage greater collaboration between the public, private and academic sectors, increase research and development activity, particularly involving Scotland’s small to medium sized enterprise sector, and to further develop the industry’s highly skilled and motivated workforce.

The launch takes place at Prestwick simultaneously with the opening, by First Minister Alex Salmond, of two new aerospace facilities.

First Minister Alex Salmond said: “I am delighted that Slingsby and Spirit have demonstrated their confidence in Scotland’s economy, and the skills and experience of the local workforce, with their plans for significant investment in the Ayrshire area.

"The Scottish Government recognises the real challenges that individuals, families and businesses face in the current economic climate and that is why we are working hard to strengthen the economy and to increase employment opportunities.

“We are using every tool at our disposal to stimulate Scotland’s economy, including various forms of government support to help secure and create jobs and attract investment.  

“This new Aerospace, Defense and Marine Industry strategy will build on our work to create new opportunities for employment and economic growth.”

Spirit AeroSystems, which manufactures wing structures a range of aircraft, including for the world’s biggest airliner, the Airbus A380, will open a research and development centre for the development of products and manufacturing methods using composite materials. Composite materials feature heavily in modern aviation design and this new centre will create or secure more than 50 jobs at the site.  Slingsby Advanced Composites officially opens its new composites design and manufacturing facility, a facility that will create nearly 30 new jobs.

Lena Wilson, chief operating officer of Scottish Enterprise and CEO of Scottish Development International, said: “Over the last three years, the Scottish Government and Scottish Enterprise have committed over £30 million of support to the development of companies in this sector. 

“This high-tech engineering sector is one we need to encourage in order to maximise its already positive impact on Scottish economy and this strategy, and the investments being made by companies such as Spirit AeroSystems and Slingsby Advanced Composites, will ensure the sector continues to prosper in Scotland.”

Spirit AeroSystems’ new multi-million pound Composite Development Centre will create or secure 52 jobs as part of the near 1000-strong Spirit’s UK workforce. 

Speaking at the opening, Scott McLarty, operations and HR director for Spirit AeroSystems (Europe) Limited said: “Opening our new R&D facility in Scotland is an important  part of ensuring that Spirit maintains and grows its critical role  in the design, development and manufacture of aircraft wing structures.

“Composite materials help reduce aircraft weight on current models but also offer significant improvements in fuel consumption, performance and cabin environment while reducing emissions on the future generations of aircraft. Mastering this technology is therefore vital to the long term sustainability of the aviation industry.

“We intend to remain at the leading edge of this technology and the new centre here at Prestwick underlines our commitment to that goal.”

The growing business opportunities presented by the increased use of composite materials throughout the aerospace, defence and marine industry is at the heart of the decision by Yorkshire-based Slingsby Advanced Composites to establish its new facility at Prestwick.    

With an initial target of 28 staff and plans to grow beyond this, the Prestwick site is the first expansion of the company since it was created in 2006, having previously operated with over 70 years experience in the aerospace sector.

Ayrshire-born managing director, Steven Boyd, said: “We took the decision to expand at Prestwick not only to tap into the potential market, but also to benefit from the excellent skills base that exists north of the border. We have not been disappointed. I am delighted with the progress in the business to date and look forward to a bright future based on our ability to innovate and provide cost-effective solutions for customers in the aerospace, defence, marine, energy and other markets.”

The UK has around 13 per cent of global aerospace industry sales. The global aerospace, defence and marine market is valued at over $1.42 trillion. Scotland currently has over 400 companies directly involved in the sector and is the leading location for shipbuilding, with fully one third of the UK industry.

Rolls-Royce, BAE Systems, SELEX Galileo, BVT Surface Fleet, Spirit AeroSystems, Goodrich and Raytheon are just a few of the global names operating in Scotland.

The groundwork for Scottish Enterprise’s new Aerospace, Defence and Marine Industry strategy began in 2008. 

Last year, the economic development agency brought together industry leaders, stakeholders and government to create an industry advisory group (IAG) to provide advice and guidance to the Scottish Government on the future development and growth of this high technology engineering sector. The value of the sector and its importance to the economy are underlined by the fact that average salaries are over one third greater than for Scottish manufacturing as a whole.

The industry advisory group has developed the new strategy, launched today, which aims to help foster an environment where the aerospace, defence and marine industry in Scotland can grow and prosper. It does so against the backdrop of the industry’s ambitious vision – set out by the main trade organisation A|D|S Scotland – of doubling industry sales by 2023.

The new strategy establishes a three-year action plan designed to lay the groundwork for the advancement of the industry.  A key feature is that ownership and responsibility for delivery of this action plan is shared by industry, academia and the public sector. 

In addition to addressing the need to secure the skills that industry will need in future, other issues highlighted include:

• Actions to attract more aerospace, defence and marine companies to Scotland,
• Increase research and development activity
• Increase research and development activity and the involvement of Scottish SMEs
• Measures to increase the involvement of Scottish companies in the industry supply chain, building on the 21^st Century Supply Chains initiative developed by A|D|S, the leading industry trade body

The 21^st Century Supply Chains initiative is already being rolled out by the Scottish Manufacturing Advisory Service in a pilot programme with defence companies in Scotland.

Lena Wilson said: “As Scotland’s enterprise, innovation and investment agency, Scottish Enterprise activities are heavily focused on the development of a number of key sectors.  “I am delighted that the Aerospace, Defence and Marine sector has worked so closely with our industry team in the development of this strategy.  I am even more pleased to note the active – and indeed leading role – which industry is playing, alongside other stakeholders, including academia and the public sector, to address the challenges facing the industry. We remain committed to ensuring Scottish Enterprise plays its full part in helping to secure a bright long term outlook for the sector.”

Tom O’Neill, chair of the Aerospace, Defence and Marine Industry Advisory Group, said: “The members of this new industry advisory group have put a lot of time and effort into the development of this strategy. But this is only the start. With an action plan now in place, industry must continue to work with all the stakeholders to secure the long term vision for the creation of a sustainable industry and the high value jobs it supports.”

Read more about the Scottish government's job creation in Ayrshire. 

Read more about the aerospace, defence and marine sector.

Ends

Notes to editors

• The Scottish aerospace sector comprised almost seven per cent of the total UK turnover of £19.4billion in 2007.
• The UK shipbuilding sector has an annual turnover of almost £2.5billion with Scotland accounting for 33 per cent of the UK shipbuilding industry.
• Scottish Enterprise figures show more than 400 companies are operating within the sector in Scotland, employing over 22,000 people.
• Nine Scottish universities are directly involved with relevant industry research.
• The average employment cost per employee in Scotland (2007) in Aerospace and Shipbuilding was £38,920 compared to a Scottish manufacturing sector average of £28,900.
• Spirit AeroSystems is the world's largest supplier of commercial airplane assemblies and components.  Headquartered in Kansas in the USA, it has operations elsewhere the USA, the UK (Prestwick and Samlesbury, England) and Asia.
• Slingsby Advanced Composites designs and manufactures specialist composite products and components for the aerospace, defence, marine, mass transit, energy and other sectors. Headquartered in Yorkshire, Prestwick was chosen as the location for the first company expansion since the new company was formed in 2006 by a management buyout.
• A|D|S is the leading trade body for the aerospace, defence and security sector.  Created in October 2009 from the amalgamation of the Society of British Aerospace Companies, the Defence Manufacturers Association and the Association of Police and Public Security Suppliers, its 21^st Century Supply Chains (SC21) initiative sets the benchmark for efficiency improvements and development of the industry’s supply chain.  

Contact details:

• For further information on Scottish Enterprise / the strategy contact: Lisa Palompo, Weber Shandwick, lpalompo@webershandwick.com / 0141 333 0557 / 07770 886 932 or Jonathan Rennie, Weber Shandwick, jrennie@webershandwick.com / 0141 333 0557 / 07770 886 908.
• Requests for further information on Spirit AeroSystems should also be routed through Weber Shandwick
• For further information on Slingsby Advanced Composites contact: Jim Speirs / 01292 473961