Welcome to the Defence Industry Northwest England

CONFERENCEThe Northwest’s key role in delivering

equipment for the armed forces

DEFENCE INDUSTRY NORTHWEST ENGLAND

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 TaylorManaging Director – Military Air Solutions

DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE

A Through-Life Portfolio

Concept Assessment DemonstrationManufacture,migration andinitial service

In service supportTransitionto out ofservice

FutureConcepts

SUAV(E) UnmannedAir Vehicles

Fast JetTraining

Solutions

F-35Lightning II

NimrodMRA4

HawkAdvancedJet Trainer

Typhoon E-3DSentry

NimrodMR2

Harrier T-45Goshawk

Jaguar

Hawk TMk1 VC10 TornadoGR4

Tornado F3

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 ApproachApprox 1,500 people on RAF bases focusing on the customer’s immediate needs

Approx 1,000 People focussed on the customers’ long term needs

Approx 14,500 (predominately in the NW) providing core capability

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 Multi Tier Suppliers

Average Tier 2

Other

Low Cost

Sources

Common language Common values Common vision

BAESystems

RollsRoyce

AirbusIndustrie

RegionalComposites

Strategy

DaresburyTechnology

Centre

NWCC

Shared services

CompositesTest

Facility

Universities

VirtualEngineering

Centre

UKTI

Internationalsupport

FEProvision

SupplyChain, skills

capacity planning

Carbon cluster

The Development of a Knowledge Based Regional Cluster

UAV’s - New Supply Chains

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

DEFENCE INDUSTRY NORTHWEST ENGLAND CONFERENCE