Aerospace: Is the region’s Supply Chain equipped for Growth?

THE aerospace industry within the West Midlands is one of the region’s great manufacturing success stories, even though the area lacks one vital ingredient – an original equipment manufacturer or OEM.

However, whether the region remains best equipped to capitalise on its unique position is questionable – and is one TheBusinessDesk.com will be focussing on this week in a series of special articles.

With the Government stressing the role of manufacturing in rebalancing the economy, coupled with the mantra that we must ‘export our way out of the recession’, TheBusinessDesk.com has joined forces with DLA Piper, Santander and Finance Birmingham to assess the manufacturing strength of the aerospace supply chain in the Midlands.

We are delighted to be joined by The University of Birmingham, which is spearheading pioneering research into the sector and which has underlined its commitment to the industry’s future with a new joint venture agreement with Rolls-Royce to create the £60m High Temperature Research Centre at Ansty Park in Coventry.

We will be using our expert analysts to assess the strength of the region’s supply chain as it confronts issues such as re-shoring, advanced manufacturing initiatives, overseas opportunities, the skills agenda and access to finance.

There is concern by some suppliers that the main original equipment manufacturers (OEMs) such as Rolls-Royce and Airbus are not really aware of the issues facing their suppliers. Discussions show this is an area many SMEs feel could be improved.

Somewhat concerning, suppliers working in tier 2 and below say their customers are not aware of the challenges they face because they are having to look at a much bigger picture.

With the supply chain within the aerospace sector becoming more consolidated, there are concerns many firms could be left behind because they lack the resources necessary to bring them up to the level required by many of their onward customers.

While the industry dictates supply firms have to think about where to position their business in 10-15 years’ time, many remain concerned about where they will be this time next year.  

There is a danger that with the industry currently benefiting from the success of the civil aerospace sector and the strength of orders being enjoyed by Rolls-Royce and Airbus many short-term needs will be overlooked. However, crucial investment in equipment and skills is still needed to ensure the supply chain remains viable.

Many of our analysts believe a closer working relationship between the OEMs and their suppliers is needed to ensure long term success.

Download a copy of our special supplement by clicking here