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DEFENCE INDUSTRY NORTHWEST ENGLAND. Welcome to the Defence 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.

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DEFENCE INDUSTRY NORTHWEST ENGLAND

Welcome to the Defence Industry Northwest England

CONFERENCE

The Northwest’s key role in delivering

equipment for the armed forces


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DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

DEFENCE IN THE NORTH WEST

Terry Waiting, Conference ChairmanChairman, Keep Our Future Afloat Campaign







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DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

BRITISH DEFENCE & SECURITY POLICY: THE MARITIME CONTRIBUTION

Dr Lee Willet Head of Maritime Studies, Royal United Services Institute


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DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

DEFENCE IN THE NORTH WEST

Dave HarrisonDirector of Partnerships, NWRDA


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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


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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


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DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

DEFENCE IN THE NORTH WESTAEROSPACE

History

Current activity

Joint working

Other connections


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DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

DEFENCE IN THE NORTH WESTBARROW AND FURNESS

BAE SYSTEMS Submarine Solutions and BAE Land Systems

Astute submarine programme

Trident Replacement – the Successor Submarine

Current challenges & opportunities


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DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

DEFENCE IN THE NORTH WESTNWRDA’S ROLE

Relationship management

Investment

Leadership

The Future


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DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

THE POTENTIAL OF BARROW SHIPYARD AND ISSUES FACING THE INDUSTRY

Murray EastonManaging Director, BAE SYSTEMS Submarine Solutions


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DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

A BRUSSELS PERSPECTIVE

Brian Simpson MEP


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DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

A WESTMINSTER PERSPECTIVE

The Hon Lindsay Hoyle MP for Chorley


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DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

THE TRADE UNION VIEW

Kevin CoyneRegional Secretary, UNITE


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DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

THE TRADE UNION VIEW

Tom Brennan Regional Secretary Northern Region, GMB


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DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

BAE SYSTEMS IN THE AIR SECTOR

Kevin Taylor

Managing Director – Military Air Solutions


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Hawk TMk1

VC10

Tornado

GR4

Tornado F3

Future

Concepts

SUAV(E)

Unmanned

Air Vehicles

Fast Jet

Training

Solutions

F-35

Lightning II

Nimrod

MRA4

Hawk

Advanced

Jet Trainer

Typhoon

E-3D

Sentry

Nimrod

MR2

Harrier

T-45

Goshawk

Jaguar

Transition

to out of

service

Manufacture,

migration and

initial service

Concept

Assessment

Demonstration

In service support

A Through-Life Portfolio


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Military Air Solutions - Footprint

  • MAS in the NW

  • Headquartered in Warton

  • Total number of employees: 12,900


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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


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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


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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


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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


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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



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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


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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


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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


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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


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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


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The Development of the Regional Aerospace Supply ChainMartin Wright, CEO North West Aerospace Alliance


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Capability across 20 companies Benchmarked

Average Tier 1

Average Tier 2

Average Multi Tier Suppliers


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The Development of a Knowledge Based Regional Cluster

UK

TI

International

support

Regional

Composites

Strategy

Carbon cluster

Composites

Test

Facility

Low Cost Sources

NWCC

Airbus

Industrie

BAE

Systems

FE

Provision

Shared services

Other

Rolls

Royce

Universities

Common language Common values Common vision

Supply

Chain, skills

capacity

planning

Virtual

Engineering

Centre

Daresbury

Technology

Centre



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DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

DEFENCE IN THE NORTH WEST

Rt Hon John Hutton MPSecretary of State for Defence


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DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

DEFENCE IN THE NORTHWEST

ANY QUESTIONS?

Session chaired by Terry Waiting, Chairman KOFAC


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