A new aerospace sector deal has been unveiled by Business Secretary Greg Hands which gives more detail on a government announcement at Farnborough Airshow in July. Here are the key takeaways:
Investment In Future Technologies
Recognising the need to keep the UK at the forefront of the global aerospace industry, innovation has secured a boost through a “Future Flight Challenge” which will focus on developing new technologies such as electric flight and urban aircraft. This package, worth £125m, is a welcome boost for the UK as we see the lead being taken by US and European companies - homegrown leaders would be a welcome development.
Research and Collaboration
While not a pot of money, research will receive a jolt through the creation of the UK Aerospace Research Consortium which will harness the brains of universities and research groups. The consortium will focus on better coordinating on areas of research, boosting output and serving the needs of industry.
The National Aerospace Technology Exploitation Programme (NATEP) will be the recipient of £13.7m from the Government and £10m industry funding. The programme will continue its work helping the aerospace supply chain to develop and exploit new technologies with key industry partners and help them to win more business.
Supply Chain Improvement
The SC21 supply chain-focused programme will see £20m, equally split between industry and government funding. SC21 is focused on helping the UK aerospace industry’s supply chain become more competitive through a framework for continuous improvement that will make individual UK businesses and the sector as a whole benefit. Great to see this important programme continue.
The KDC Resource View: Great news for the industry
Peter Burden, CEO of KDC Resource, said: "It is fantastic to see the UK Government commit to the aerospace sector, and we must remember that this is not blind faith; the government are well aware that for every pound they invest the return is far greater."
"In addition this funding will help us plug the extensive skills gap challenge that we will be facing in the future, ensuring that the UK can stay at the forefront of aerospace technology for decades to come."