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Thursday 8th December 2016

APM Conference – Shaping The Northern Powerhouse

Michael Christie – Strategy Directorand Chief Technologist, Military Air & Information

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Military Air and Information in the North West• Military Air and Information (MAI) 2015 Turnover of c. £4bn

• Based across 24 industrial sites and RAF bases

• The North West is home to 3 BAE Systems Military Air and Information (MAI) sites

• Organised as 4 “lines of business”• Combat Air (including Eurofighter Typhoon)• Defence Information, Training & Services (including Hawk)• F-35 • Future Products and Services

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Military Air and Information – Capabilities & Vision 1. Build on our heritage of manned combat air systems

2. Invest in key discriminating technologies

3. Demonstrate the integration of these key technologies

4. Sustain our industrial capability through partnering

5. A focus on through-life capability offering a balance of • operational capability• affordability • sustainability

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A History of Transitioning from Research to Production

Case Study - Unmanned Systems

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Case Studies (Continued) 6

Mixed Reality - Open Innovation approach with Academia in 2013/14• Leveraging commercial off the shelf technologies for new

purposes• Partnered with the University of Birmingham

Collaboration with Reaction Engines Limited (REL) • Combining unique capability or REL in key propulsion

technologies with BAE Systems system integration capability• The challenge is for the big company to avoid “suffocating” the

smaller one!

Integrated Autonomous Assembly Demonstrator• An end-to-end future manufacturing capability that would greatly

reduce the cost and lead-time compared to the existing established approach

• A highly adaptable / re-configurable system using robotics combined with a “digital thread”

• Manufacture of the demonstrator module at The University of Nottingham

….Further Enhancing the Northwest’s manufacturing capability

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(Development & Upgrade)

*(Development & Upgrade)

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* Includes assumed future upgrade and export sales

• The UK Taxpayer got more money back from Hawk, Harrier, Tornado and Typhoon than they invested in their development

• The Air Sector contributes approximately 80% of UK Defence Exports

Hawk

Typhoon

Economic Contribution – Programme View

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Economic Contribution – Broader View

• MAI is already major contributor to the Northern Powerhouse…

“I was delighted to visit BAE systems, a company right at the heart of the Northern Powerhouse, to hear about their plans to create 2,000 new apprentices”

George Osborne, Chancellor of the Exchequer9th July 2015

715 suppliers &£373m spending

16,200 JobsDirect, Indirect, Induced

3 Major Sites & 5 Minor Sites

£1bn investment at Samlesbury (2006-18)

£5.1m spent with 190 training providers

1,750 recruits in Early Careers Schemes over past 10 years

3 Enterprise Zones

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• 1000+ apprentices in training • 300+ graduates in training • Highly skilled workforce - around ¾ of

people working in professional, managerial or engineering roles.

• To maintain this BAE Systems spends almost £80 million on training employees each year.

Skills Contribution

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Supply Chain – Productivity Through People

• Led by a unique collaboration of three world class manufacturers – BAE Systems, Siemens and Rolls Royce

• Objectives: • Support & invest in manufacturers of tomorrow• Give access to latest techniques, thinking and research • Transform productivity and working practices

• Lancaster University

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Supply Chain – North West Aerospace Alliance

• NWAA is the key industry organisation in the region, representing and uniting companies involved in the aerospace sector supply chain.

• Contributes over £7billion to the UK economy represents approximately 25% of the UK aerospace turnover.

• Formed in 1994 with over 220 member companies

• £20million supply chain improvement programmes: • Aerospace Supply Chain Excellence (ASCE) • Growing Autonomous Mission Management Applications (GAMMA)• National Aerospace Technology Programme (NATEP)

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Enterprise Zone

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• The Lancashire EZ is focused on the advanced engineering and manufacturing sector

• Covers 147 hectares of land spread across BAE Systems sites at Warton and Samlesbury

• Targeted to generate between 4,000 and 6,000 jobs over a 25-year period

• Last week at Samlesbury, a £15m state-of-the-art training academy to develop the future and current workforce of MAI opened

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MAI & The Northern Powerhouse

The Military Air Sector already contributes to the stated aims of the Northern Powerhouse:

- Economic Growth- Increased Skills and Employment- Enterprise Zones- Political Legacy

In the other areas which are attributes of the Northern Powerhouse, the sector may not have a direct impact but could provide a justification for change:

- Devolution of power- Improved infrastructure

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The North West - Military Air Sector

• Significant economic contributor• World-leading capabilities • Major contribution in skills development

…Already a Powerhouse

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Future Challenges for MAI / The Military Air Sector

• The impact of Brexit, US election, general political instability

• Challenges our customers face in responding to new threats

• Inspiring the innovation and development of new technologies and capabilities – A future product

• Developing skills and a pipeline of talent for the future • …Securing a Defence / Industrial Strategy for the

sector

SeamewBuccaneerVulcanVictorValiantSperrinSea VenomSea VixenLightningGnatJavelinHunterSR.53Type 525ScimitarJet Provost

NimrodStrikemasterTSR-2JaguarHarrier Balzac VEtendard IVGuardianMirage 5Mirage GAtlanticMB.326ViggenDo 31VAK 191B

Sea Harrier Tornado IDSTornado ADVHawk 50FirecrackerBulldogDefenderMirage 2000Mirage 4000Mirage F1/ F2Super EtendardAlpha JetAtlantique 2MB.339L-39 AlbatrosI-22 IrydaPZL-130 OrlikIAR 93 VulturJ-22 OraoSuper GalebC-101 Aviojet

GoshawkHawk 100/Hawk 200Harrier IIEAPTyphoonS-211 / M-345AMXRafaleIAR 95IAR 99GripenL-59 Super Albatros

Hawk T2 / AJTNimrod MRA4JCA / JSF*M-346L-159 ALCA

MantisTalarionLittle DukeBarracudaFalco

TaranisnEUROnFilur

ProductionMajor UpgradesDemonstrators

AlizeOuraganMystereSuper MystereMagisterDurandalBarouderVautorMirage IIIMirage IVLansenDrakenArieteSagittario 2SF.260G.91AiguillonArbaleteP-16L-29 DelfinIskraGaleb

UK/ FR UCAS ?

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* Limited UK workshare

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Thursday 8th December 2016

APM Conference Michael Christie – Strategy Directorand Chief Technologist, Military Air & Information