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1 Five reasons aerospace suppliers should target the German market Midlands Aerospace Alliance 2014

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Page 1: MAA German aerospace market 2014 · Title: Microsoft PowerPoint - MAA German aerospace market 2014 Author: Andrew Created Date: 1/17/2014 9:59:02 AM

1

Five reasons aerospace suppliers should

target the German market

Midlands Aerospace Alliance

2014

Page 2: MAA German aerospace market 2014 · Title: Microsoft PowerPoint - MAA German aerospace market 2014 Author: Andrew Created Date: 1/17/2014 9:59:02 AM

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Five reasons aerospace suppliers should

target the German market

1. Germany has a complete, mature aerospace industry to target

2. It is as big as the UK industry

3. It is growing faster than the UK

4. It is focused on the fastest growing civil aerospace markets

5. Its own supply chain has recognised weaknesses UK companies can address

Page 3: MAA German aerospace market 2014 · Title: Microsoft PowerPoint - MAA German aerospace market 2014 Author: Andrew Created Date: 1/17/2014 9:59:02 AM

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1. Germany has a complete, mature

aerospace industry

According to a European study it contains all four tiers1. The first group contains system integrators, such as the OEM-

suppliers Airbus and Eurocopter that supply final products (large civil aircraft and helicopters).

2. The second group contains engine manufacturers for jets and helicopters, Rolls-Royce Germany, MTU Aero Engines, Turbomeca.

3. The third group contains equipment manufacturers that supply a broad range of products, among them landing gear, avionics, measurement equipment, safety devices, cabins, interior equipment.

4. The fourth group contains a group of companies who primarily provides basic parts and components to the aerospace industry. Specific know-how in material technologies, machining, processing etc. is a key competency.

There is also a significant space industry and a large MRO sector

Page 4: MAA German aerospace market 2014 · Title: Microsoft PowerPoint - MAA German aerospace market 2014 Author: Andrew Created Date: 1/17/2014 9:59:02 AM

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2. Germany’s aerospace industry is as big

as the UK’s

Germany and UK aerospace compared:

sales

0

5

10

15

20

25

30

Germany UK

2011 s

ale

s,

bill

ion e

uro

s

Germany and UK aerospace compared:

employment

0

20

40

60

80

100

120

Germany UK

2011 e

mplo

yees,

thousands

The latest comparable figures (2011) reveal that Germany’s

aerospace industry has sales and employee numbers on a par with the UK’s

Page 5: MAA German aerospace market 2014 · Title: Microsoft PowerPoint - MAA German aerospace market 2014 Author: Andrew Created Date: 1/17/2014 9:59:02 AM

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3. German aerospace is growing faster than

UK aerospace

On recent trends, Germany’s aerospace industry will soon be bigger than the UK’s, in both sales and numbers of employees

UK, Germany and France aerospace industries

0

5

10

15

20

25

30

35

40

45

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Sale

s,

bil

lio

n e

uro

s

0

20

40

60

80

100

120

140

160

180

Em

plo

ym

en

t, t

ho

usan

ds

Germany sales UK sales France sales

Germany empl UK empl France empl

Page 6: MAA German aerospace market 2014 · Title: Microsoft PowerPoint - MAA German aerospace market 2014 Author: Andrew Created Date: 1/17/2014 9:59:02 AM

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4. Germany is focused on the fastest

growing civil aerospace marketsUK, France and Germany aerospace industries

compared

0%

20%

40%

60%

80%

100%

France Germany UK

% o

f re

ven

ues b

y s

ecto

r

Defence

Civil

¾of Germany’s aerospace industry produces for fast-growing civil aerospace markets, compared to ½in the UK

Page 7: MAA German aerospace market 2014 · Title: Microsoft PowerPoint - MAA German aerospace market 2014 Author: Andrew Created Date: 1/17/2014 9:59:02 AM

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5. Germany’s aerospace supply chain faces

challenges you may be able to address

• Despite German industry’s formidable reputation:– A UK aerospace prime’s

own study reports German quality slightly poorer than UK, although stronger on meeting delivery targets --and more companies have differentiating technology strengths

– A recent German study reports mixed strengths and weaknesses even at large aerospace suppliers

Internationalization and

competitiveness of aerospace

suppliers. H&Z study, Munich, 2012

Large suppliers

Small suppliers

Page 8: MAA German aerospace market 2014 · Title: Microsoft PowerPoint - MAA German aerospace market 2014 Author: Andrew Created Date: 1/17/2014 9:59:02 AM

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Additional information on

German aerospace industry

Page 9: MAA German aerospace market 2014 · Title: Microsoft PowerPoint - MAA German aerospace market 2014 Author: Andrew Created Date: 1/17/2014 9:59:02 AM

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Major aerospace companies in Germany

System Manufacturers CASSIDIAN EADS Deutschland GmbH

Airbus Operations GmbH

OHB System AG

Eurocopter Deutschland GmbH

ASTRIUM GmbH

Engines Rolls-Royce Deutschland LTD & Co KG

MTU Aero Engines AG

Equipment Liebherr-Aerospace Lindenberg GmbH

Diehl Aerosystems Holding GmbH

Material and Components Otto Fuchs KG

ThyssenKrupp Aerospace GmbH

Page 10: MAA German aerospace market 2014 · Title: Microsoft PowerPoint - MAA German aerospace market 2014 Author: Andrew Created Date: 1/17/2014 9:59:02 AM

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Where the German aerospace industry

is located

http://web13.kermit.basta-media.com/wp-content/uploads/2012/11/studie_imsteigflug.pdf

1.1.

2.2.

3.3.

4.4.

5.5.

6.6.

Major centres in

descending order

Page 11: MAA German aerospace market 2014 · Title: Microsoft PowerPoint - MAA German aerospace market 2014 Author: Andrew Created Date: 1/17/2014 9:59:02 AM

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UK Trade and Investment’s “do’s and don’t”

of German business

Do’s Try to communicate in German

Have trade literature in German

Be formal – avoid first names until you are invited to do so

Use academic titles

Supply samples

Make sure products meet German standards (check with BSI)

Meet delivery times

Quote total prices in Euro

Product guarantees and after sales service/support are big considerations

Do your homework – be professional: keep appointments, get straight to the point

Respond quickly to queries and requests for quotes

Follow up any information that you send out

Don’ts Don’t expect too much on your first visit, it takes time

Don’t be late

Don’t use first names

Don’t delay – reply quickly

Page 12: MAA German aerospace market 2014 · Title: Microsoft PowerPoint - MAA German aerospace market 2014 Author: Andrew Created Date: 1/17/2014 9:59:02 AM

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For more information

• See the latest reports by the Germany aerospace industry association

BDLI: http://www.bdli.de/en/

• Support and advice is available from UK Trade and Investment’s expert

on German aerospace:

• Katja Schlaug, Senior Trade Adviser

• British Consulate-General Munich

• Moehlstrasse 5

• D-81675 Munich, Germany

• Tel: +49 (0)89 21109 135

• Fay: +49 (0)89 21109 155

• Email: [email protected]

• Website: www.uktradeinvest.gov.uk

• These slides were developed by the Midlands Aerospace Alliance team

of Dr Andrew Mair, Chief Executive and Emma Burgess, Marketing

Manager.