FAC STRATEGIC BRIEF

FAC EUROPE

FAC & EUROPE

Introduction

The European Union (EU) plays a significant role in the global aerospace sector, which is a cornerstone of its economy and innovation landscape. Here's an overview:

1. Economic Impact: The aerospace industry in Europe generates substantial revenue, with the civil aeronautics sector alone contributing €130 billion annually and providing over 405,000 high-skilled jobs. The broader aerospace and defense industry had a turnover exceeding €250 billion in 2019.
2. Global Leadership: Europe is home to some of the world's largest aerospace companies, such as Airbus, Rolls-Royce, and Safran. These companies lead in the production of civil and military aircraft, helicopters, drones, and aero-engines.
3. Innovation and Sustainability: The EU's aerospace sector is heavily invested in research and development (R&D), spending around €8 billion annually. This focus drives advancements in safety, efficiency, and sustainability, including the development of zero-emission aircraft to meet the EU's 2050 climate goals.
4. Challenges: The industry faces challenges such as supply chain disruptions, rising energy costs, and geopolitical tensions. Recent trade tariffs and sanctions have further complicated the landscape, impacting production and costs.
5. Policy and Support: The European Commission actively supports the aerospace sector through initiatives aimed at enhancing competitiveness, fostering innovation, and reducing the environmental impact of aviation.

The EU's aerospace industry is not just about economic strength; it's also a symbol of technological excellence and international collaboration.

Major Players

The EU aerospace sector is dominated by several key players, each contributing significantly to the industry's innovation and global competitiveness. Here are some of the major companies:

1. Airbus SE: A leader in aircraft manufacturing, Airbus is renowned for its commercial and military aircraft. It has a strong presence in Europe and is expanding its sustainable aviation technologies.
2. BAE Systems PLC: Specializing in defense technologies, BAE Systems engages in a wide range of markets across Europe, focusing on advanced defense systems and integrated technology solutions.
3. Leonardo SpA: This Italian company is involved in aerospace, defense, and security sectors, with expertise in advanced avionics and military systems.
4. Safran SA: Known for its propulsion and equipment solutions, Safran is a leader in aircraft engines and aerospace equipment, with a strong emphasis on R&D to improve efficiency and reduce emissions.
5. Thales Group: Thales offers advanced technological systems for defense and aerospace applications, including secure communication technologies and cybersecurity solutions.

These companies are at the forefront of innovation, driving advancements in aerospace technology and sustainability.

How do UK Companies collaborate with Aerospace in the EU?

UK companies collaborate with EU aerospace firms in various ways, fostering innovation and maintaining strong ties despite challenges like Brexit. Here are some key aspects of their collaboration:

1. Research and Development (R&D): UK companies often partner with EU firms on cutting-edge projects, such as developing sustainable aviation technologies. For example, Cranfield Aerospace Solutions, a UK-based SME, works closely with European organizations to advance hydrogen-powered aircraft.
2. Certification and Regulation: UK aerospace companies engage with EU regulatory bodies like the European Union Aviation Safety Agency (EASA) to streamline certification processes. This collaboration ensures that new technologies meet international standards.
3. Supply Chain Integration: Many UK aerospace firms are integral parts of the EU supply chain, contributing components and expertise to major projects like Airbus aircraft production.
4. Space Exploration: UK companies, such as Airbus UK, collaborate with the European Space Agency (ESA) on ambitious projects like landing the first European rover on Mars.
5. Advocacy and Representation: Organizations like the Aerospace, Security and Defence Industries Association of Europe (ASD) and its UK partner, ADS, amplify the voices of UK aerospace companies within the EU, ensuring their interests are represented in policy and standards development.

These partnerships highlight the mutual benefits of collaboration, driving innovation and maintaining competitiveness in the global aerospace market.

Typical Requirements

EU-based aerospace businesses often source a variety of high-value products and services from the UK, reflecting the UK's expertise in advanced aerospace technologies. These typically include:

1. Aircraft Wings: The UK is a global leader in wing design and manufacturing, with Airbus' wing production facility in Broughton being a prime example.
2. Engines and Propulsion Systems: Companies like Rolls-Royce supply world-class aircraft engines, known for their efficiency and innovation.
3. Avionics and Advanced Systems: The UK provides cutting-edge avionics, landing gear systems, and other advanced aerospace technologies.
4. Materials and Composites: The UK exports specialized materials and composites used in lightweight and durable aircraft construction.
5. Maintenance, Repair, and Overhaul (MRO): UK firms offer MRO services, ensuring the longevity and performance of aerospace equipment.

These exports highlight the UK's critical role in the EU's aerospace supply chain.

Talk to FAC about how we can support your efforts to work with the European Union, its members, and businesses therein.