Artist’s rendering of a 737 Max aircraft
The relationship between manufacturing industry and government is “as good as it has been in a generation”, the chief executive of GKN's aerospace division has claimed. Marcus Bryson was speaking at the Department for Business, Innovation and Skills in London as the firm showed off the winglet design it is to produce for Boeing's new 737 Max aircraft.
The US plane manufacturer confirmed earlier this month that it had selected British supplier GKN to produce the winglet, whose unusual split design cuts fuel consumption by 1.5%. The single-aisle 737 Max is intended to replace older 737 aircraft in the Boeing fleet.
The company has 1,600 orders for the Max, which is due to enter commercial service in 2017. The winglet was initially tested at Qinetiq's facilities in Farnborough, and subsequently by Boeing in Seattle, Washington.
Marcus Bryson, chief executive of GKN Aerospace and Land Systems, said: “We've worked hard, and I would say the relationship between industry and government is as good as it's been in a generation.” Earlier this year, the government announced the £2 billion Aerospace Growth Partnership, which includes the development of the Aerospace Technology Institute.
Business minister Michael Fallon told PE: “Aerospace is one of the most successful industrial sectors we have. We've seen a huge surge in orders for civil aircraft, with nearly 30,000 new aircraft needed between now and the 2030s, and Airbus and Boeing are obviously going to provide the lion's share of them.
“The industry here is on a roll.”
Aerospace was viewed by government as one of the leading industrial sectors, alongside life sciences and automotive, said Fallon. “This order could have gone to Austria or South Korea: in fact it's come to the Isle of Wight, which is a vote of confidence in the British economy, not just the supply chain.”
Aeroengine maker Rolls-Royce has recently announced details of a £110 million scheme to improve the performance of aerospace suppliers.
Fallon added that suppliers would have to rise to the challenge of increasing orders. “The Aerospace Technology Institute is important because it demonstrates a long-term commitment to the technologies involved in aerospace. You can't plan those technologies on a short-term basis.
Sir Roger Bone, Michael Fallon and Marcus Bryson
“We have expertise in avionics, wings, and in composites that are world-beating. We need to capitalise on that.”
He said he hoped that these developments would not be overshadowed by any change in government. “The Labour party has accepted that it neglected industry,” he said. “I hope there is all-party support for this kind of commitment. You can't chop and change every four years.”
Sir Roger Bone, president of Boeing in the UK, said Britain already had 17% of global aerospace business, so “the supply chain starts from an incredible position”. Suppliers needed to invest in R&D and skills, he said.
“We are here because we know we can do good business here. We don't have a production facility, but we spend a lot of money in the supply chain. We're a stimulus for exports, although we don't actually manufacture ourselves. We invest a lot in R&D.”
GKN has been building winglets in Britain for Boeing for seven or eight years, said Bryson. “Technology is going to be the key to sustaining our market share in the global aerospace industry,” he added. “We know that the UK is never going to compete purely on cost: we have to be as up-to-date with our technology as possible.
“It's good that people like Boeing come to the UK, seeing us not just as a manufacturer, but a problem-solver on technically challenging, difficult projects.”
Bryson added that the government had shown it could work to “industrial, rather than political, cycles – and we need that longevity of view. We need to claim back what's been a declining part of our GDP for many years.
“You just sense that we're starting to turn the curve.”
Paul Everitt, chief executive of ADS, the aerospace and defence trade association, said: “The announcement that GKN will supply the advanced technology winglet to Boeing is an exciting step forward for both GKN and the wider aerospace sector.
“There is growing interest in the work of the Aerospace Growth Partnership and a willingness by companies to invest here to take advantage of the UK’s world-leading aerospace technology and high-value manufacturing know-how.
“The contract will generate many highly skilled jobs at GKN and throughout its supply chain in the UK.”