DEFENCE INDUSTRY NORTHWEST ENGLAND elcome to the Defence W Industry Northwest England CONFERENCE The Northwest’s key role in delivering equipment for the armed forces DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE DEFENCE IN THE NORTH WEST Terry Waiting, Conference Chairman Chairman, Keep Our Future Afloat Campaign DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE DEFENCE IN THE NORTH WEST DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE DEFENCE IN THE NORTH WEST DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE DEFENCE IN THE NORTH WEST DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE DEFENCE IN THE NORTH WEST DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE DEFENCE IN THE NORTH WEST DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE BRITISH DEFENCE & SECURITY POLICY: THE MARITIME CONTRIBUTION Dr Lee Willet Head of Maritime Studies, Royal United Services Institute DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE DEFENCE IN THE NORTH WEST Dave Harrison Director of Partnerships, NWRDA DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE DEFENCE IN THE NORTH WEST The Northwest’s Defence industry is resilient The Aerospace sectors importance Barrow and Furness and naval shipbuilding NWDA’s role in supporting the defence industrial base DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE DEFENCE IN THE NORTH WEST NW DEFENCE INDUSTRY Defence in the region supports 17,000 jobs and 40,000 more in supply chain 13% of UK’s defence manufacturing is based in the region Major manufacturing facilities in Warton, Samlesbury, Barrow, Birkenhead Key MOD jobs are based in the region DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE DEFENCE IN THE NORTH WEST AEROSPACE History Current activity Joint working Other connections DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE DEFENCE IN THE NORTH WEST BARROW AND FURNESS BAE SYSTEMS Submarine Solutions and BAE Land Systems Astute submarine programme Trident Replacement – the Successor Submarine Current challenges & opportunities DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE DEFENCE IN THE NORTH WEST NWRDA’S ROLE Relationship management Investment Leadership The Future DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE THE POTENTIAL OF BARROW SHIPYARD AND ISSUES FACING THE INDUSTRY Murray Easton Managing Director, BAE SYSTEMS Submarine Solutions DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE A BRUSSELS PERSPECTIVE Brian Simpson MEP DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE A WESTMINSTER PERSPECTIVE The Hon Lindsay Hoyle MP for Chorley DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE THE TRADE UNION VIEW Kevin Coyne Regional Secretary, UNITE DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE THE TRADE UNION VIEW Tom Brennan Regional Secretary Northern Region, GMB DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE BAE SYSTEMS IN THE AIR SECTOR Kevin Taylor Managing Director – Military Air Solutions A Through-Life Portfolio Future Concepts Concept SUAV(E) Unmanned Air Vehicles Assessment Fast Jet Training Solutions F-35 Lightning II Nimrod MRA4 Demonstration Hawk Advanced Jet Trainer Typhoon Manufacture, migration and initial service Hawk TMk1 VC10 Tornado GR4 Tornado F3 E-3D Sentry Nimrod MR2 Harrier T-45 Goshawk In service support Jaguar Transition to out of service Military Air Solutions - Footprint MAS in the NW •Headquartered in Warton •Total number of employees: 12,900 BAE Systems’ economic importance to the North West – The North West is by far the most important region for BAE Systems in the UK, accounting for about half of its 35,000 UK employees – These include 9,300 skilled technical jobs, and 6,000 managerial and professional jobs – For every 10 jobs directly supported by BAE Systems in the NW another 13 are created in the supply chain – More suppliers in the North West (1,200) than any other region Source : The Economic Contribution of BAE Systems to the UK in 2006, Oxford Economics/Geo Economics, April 2008 MAS mission “Working as an integral part of the team delivering effective air power, our aim is to give real advantage to the men and women of our Customers’ armed forces. Trusted to deliver - always.” The MAS team MAS Through-Life Approach Approx 1,500 people on RAF bases focusing on the customer’s immediate needs Approx 14,500 (predominately in the NW) providing core capability Approx 1,000 People focussed on the customers’ long term needs The UK Environment – our needs – Strategic Dialogue and Joint Planning to optimise efficient supply of capability – A partnering relationship that enables optimum behaviour and mutual benefit – Sustainment of industrial capabilities and capacity to provide responsive support to the front line and to underpin exports – Recognition of the role defence plays in the sustainment of UK/foreign relations and the UK economy Partnering in action Harrier - £44m cost savings. 11 extra aircraft available to the frontline. Tornado - Saving of £500m over 10 years. Reduced workload maintenance hours by 50%. Hawk - Exceeding 95% Dispatch Reliability, saving 10% of cost Nimrod MR2 - 40% Increase in Aircraft Availability, 8% Cost Reduction VC10 - costs reduced by 20% and increased availability Typhoon - entry into service and QRA deployment UOR Support to current operations Investment in technology Investment & consolidation of footprint Building work at RAF Marham - increased MAS presence on base Proposed mixed use development on periphery of Warton site - 19 acres of disused land Samlesbury site development - expansion of manufacturing, engineering and office space Investment in skills – In 2008 – – – – 1,000 new recruits 135 graduates & apprentices joined the team £9.5 million spent on learning & development 133 Association of Project Management passes in 2008 UK Opportunities & Challenges – Establish a mutually beneficial long-term partnering agreement with the UK Customer – Typhoon Tranche 3 – Deliver Saudi contract – Develop our UAV capabilities (Taranis & Mantis) – F35 – Production ramp up – Tech Transfer – UK commitment – Nimrod MRA 4 and Woodford site International Opportunities & Challenges Combat Aircraft – Addressable market large – up to 900 aircraft (c £90Bn through-life value) – US competitors either ageing (e.g. F-15/18) or currently not available (e.g. F-22) – F-35 and Typhoon capable of dominating the sector Unmanned Air Systems (UAS) – Sector with greatest long-term growth potential – Product differentiation and time to market key – Opportunity for UK to continue a lead position in Aerospace Summary – We and our supply chain play an unique role in supporting the UK’s Armed Forces – We support UK operations in terms of industrial responsiveness and self-determination for operational capability. – It is essential that we secure Tranche 3 – A UAV programme will prepare us for future requirements and a leading aerospace position – The decisions we make now will determine future success in the export markets The Development of the Regional Aerospace Supply Chain Martin Wright, CEO North West Aerospace Alliance Capability across 20 companies Benchmarked Average Tier 1 Average Tier 2 Average Multi Tier Suppliers The Development of a Knowledge Based Regional Cluster Carbon cluster UK TI International support Regional Composites Strategy Composites Test Facility Low Cost Sources NWCC BAE Systems Shared services Airbus Industrie Rolls Royce FE Provision Other Common language Universities Common values Common vision Daresbury Technology Centre Virtual Engineering Centre Supply Chain, skills capacity planning UAV’s - New Supply Chains DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE DEFENCE IN THE NORTH WEST Rt Hon John Hutton MP Secretary of State for Defence DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE DEFENCE IN THE NORTHWEST ANY QUESTIONS? Session chaired by Terry Waiting, Chairman KOFAC