SPRING 2012

AirTalkCelebration of

Aerospace andDefence

Flying High

IN THIS ISSUE

Standardised contracting from MODpage 9

ConnectFor engineers andbusiness leaderspage 10

02

There is no doubt that uncertaintyremains about the condition of theUK economy with many conflictingviews on whether, or not, another recession is imminent. However, weoften forget to make the relativecomparison with the rest of Europeand the rest of the World before deciding on the condition of oureconomy. After all, economic recovery is a global challenge andon the whole the UK is doing OK,however painful we may all findthe process.

Being focussed on aerospace we all know about in-flight turbulenceand how disconcerting it can be for the passengers, but if we consider ourselves to be the aircrew (not passengers), we knowthat turbulence is an everyday partof the business and we know that99.9999% of the time, it is a survivable experience.

The more we can behave as aircrew and not passengersthrough the turbulence, the betterour own recoveries will be. We know we are in a market that continues to grow. The bounce-back seen after previous recessionsshows this time-after-time.

Civil aerospace in particular continues to grow, as well as maintaining a strong replacementelement to the overall demand for new equipment. The shares ofAero and Defence FTSE companies

outperform the market on the 1, 3and 12 month comparisons. Forthe first time in many, many years there is a realisation - supported byaction - that the UK needs a strong,growing manufacturing sector tosucceed and that must be based on high-value adding industries like ours.

To survive you only have to outrunthe weakest. UK aerospace alreadydoes that well. To consistently prosper you have to be able to compete with the best on an added-value basis. That is our challenge.

So take a step back. Think of yourself as the aircrew. On thewhole we have control of our aircraft – we just don’t control theweather. We never did. But our capability and experience in calming the passengers and succeeding, in spite of the turbulence, is amongst the best in the World. We live in turbulenttimes but within an industry that isstill Flying High, and the higher youcan fly, the less turbulence there is.

Inside:

AirTalk is published by theWest of England Aerospace Forum:Unit C St David’s Court, Windmill Road,Clevedon, North Somerset BS21 6UPTel: +44(0)1275 872 353 Fax: +44(0)1275 872 355Email: enquiries@weaf.co.uk Web: www.weaf.co.uk

AirTalk is printed on recycled paper

Print: Apple Colour 0117 972 8900

www.applecolour.co.uk

Design: WEAFwww.weaf.co.uk

Cover photo courtesy of Airbus UK

From the Chair 02

Chief Executive’s Report 03

Member News Beagle Technology Group 04

World First - New WEAF Service

Vistair 05

tlmNEXUS

New Members 06

Annual Conference Review 07

Upcoming Events 08

Standardised Contracting from the MOD 09

Fromthe Chair

STOP PRESS........WEAF launches South WestEnergy Cluster at AnnualConference.

For further information visitwww.weaf.co.uk

03

WELCOME

Chief Executive’s Report

Flying High

The SW creates a Gross Value Added of £3.2 billion with over 59,000 people working within its supply chains. Thesejobs are high value with productivity estimated at £54,000 per FTE rising to £73,000 amongst the leading aerospacecompanies. Given its size, capacity and on-going capability enhancement, the sector remains confidently placed totake advantage of future and exciting opportunities afforded by the global market place for civil and defence aerospace.

SO WHY DO WE NOT TELL EVERYONE ABOUT IT? Simple really we have become accustomed to it, with over 100 years of aerospace manufacturing in Bristol alone,people take it for granted. WEAF and its members cannot do that, we have to make sure that the issues that affectthe sector are recognised by national and local government and are supported in a way as to continue allowing theSouth West companies to compete in the global markets. February’s Annual Conference, which had a theme of“Flying High”, celebrated that fact. With Airbus, Rolls Royce, AgustaWestland, Flybe and two of the regional airports in Bristol and Newquay on the speakers platform, and all in the SW, shows industries commitment to WEAF and to demonstrating to a wider audience the success of the SW. Something we shouldshout about from the rooftops.

Talking of shouting from the rooftops it was great to see an Aerospace exhibition in 1 Victoria Street in London theHeadquarters of BIS. Many of the region’s leading companies had exhibits none more striking than the mock up ofthe AgustaWestland AW169 their next generation of civil helicopter. To clone a phrase the future’s bright the future’s in the SW.

Become a STEM Ambassador and help develop yourself, your staff and the professionals of the future.

The STEM Ambassadors Programme managed nationally by STEMNET (The Science, Technology, Engineering and MathsNetwork) enables anyone with STEM skills to volunteer as an inspiring role model for young people aged 5 -19. You will engage local students by providing real-life applications to the topics they learn in the classroom and demonstrate the variety of routes into STEM related careers, helping young people make informed choices about their futures.

Across the UK, over 1,800 employers and 30,000 volunteers are already engaged with the programme and enjoying benefits including: improving the motivation, confidence and skills of staff as well as helping to find the STEM professionalsof the future. With support from STEMNET and local brokers, STEM Ambassadors receive training, CRB checks and monthly updates on local opportunities to inspire young people in STEM, including careers talks, science fairs and demonstrations atafter-school clubs.

Please visit www.stemnet.org.uk or contact your local contract holder via http://www.stemnet.org.uk/list/south-west-local-contacts

The South West Region has the largest aerospacecluster in the UK and hosts one of the largest andmost significant aerospace clusters in the world.With 17% of the global market share, the UK isthe second largest in the world to the US.

WEAF is proud to announce a new benefit to our members in the form of a leadingcurrency service, provided by World First Foreign Exchange.

Volatility in the currency markets has had a significant impact on UK companies in the last year,and 2012 is likely to be equally as tempestuous. With a number of WEAF members exporting andimporting internationally, a bespoke currency management service will be of significant value tomany. Sterling was at 1.67 against the US dollar in April 2011, and has weakened considerablysince, now standing around 1.54. Weakening by a considerable amount in 9 months, the cost ofimporting parts or raw materials from a US dollar denominated country has increased by almost 8%.

Exporters have also been affected. In the same 9 month period as above, Sterling strengthened from 1.11 against the euro to above 1.20 in January 2012. This makes it over 7% more expensive for European clients to buyproducts from UK exporters, which in turn can affect client orders. If you allow your client to pay you in euros, you will be left with 7% less sterling when you repatriate funds to the UK. In the current economic environment it is crucial for businesses to budget carefully and minimise costs wherever possible. With this in mind it is certainly worthlooking at your exposure to currency movements, and assessing the best ways to manage this exposure, giving you protection, peace of mind and the ability to budget more accurately.

If you would like to discuss your company’s ongoing currency requirements in more detail, please contact WEAF on01275 872353 and we will put you in touch with World First, who will be happy to talk through your requirementsand explain the various options and services that may be suitable for you.

04

MEMBER NEWS

Beagle Technology Group workforce increases by fifty per cent

NewsMEMBER

Following a one million pound investment in equipment andfacilities upgrades over the past year, Beagle TechnologyGroup has been expanding its workforce by 50 per cent todeal with their growing order book. New recruits include:

• Steve Mullen – Head of Business Development• Helen Woodhead – Trainee Account Manager• Rebecca Tunnicliffe – Marketing & Business

Excellence Co-ordinator

In addition, Beagle’s recruitment campaign for a new production team, producing the composite pods for the MOD’s Light Protected Patrol Vehicle (LPPV), is progressing well. The initial team of 25 were appointed during the summer and recently Beagle has been holding assessment days to fill the second batch of positions, which will bring the new team up to full strength at 45 manufacturing operatives and supervisors. On 4 November2011, Beagle’s LPPV production line was awarded South West regional runner-up by the Engineering Employers’ Federation at the Future Manufacturing Awards 2011.

John Taylor, Managing Director, Beagle Technology Group,commented: “For over 50 years Beagle has been a majoremployer in the local area and Iam delighted that the Companyis able to offer new jobs at a timewhen the economy in general isbeing hard hit. It is particularly rewarding that we are able totrain up inexperienced workersand equip them new skills.“Combined with our latest

investment in equipment and upgrades, our expanded workforce has enabled Beagle to offer our services, skills and experience to industries beyond the aerospace sector. “We have a proven trackrecord in responding swiftly and flexibly to the needs of our customers, and we have earned a reputation for alwaysdelivering on our promises. This is an exciting time for all ofus at Beagle: we are building on our rich heritage andunique skills set, across a wide range of technologies, to innovate and win business in new markets.”

Photo courtesy of theBournemouth Echo

WEAF launches new currency service

05

MEMBER NEWS

Vistair - Flybe signs up for Vistair’s full portfolioof cloud-based safety & manuals servicesFlybe renews its SafetyNet contract and expands to e-documents and Electronic Flight Bag (EFB) services.Flybe, one of Europe’s biggest airlines, has renewed its contract for Vistair to provide its cloud-basedSafeyNet safety reporting andmanagement services, andhas now expanded that contract to include Vistair’selectronic manuals service,iPad service, and “Touch No-tices” system. The contractcovers Flybe’s entire fleet of67 Bombardier Dash-8 Q-400and Embraer aircraft. Vistair’scloud-based services will replace in-house operations atFlybe. According to Flybe’s Director of Flight Operations, Ian Baston: “Our experience over recent years, in using Vistair’s SafetyNet service, has boosted our safety compliance and reduced our costs whilst allowing the airline to maintain safety oversight of our growing operation. “Recently, we have been evaluating the marketfor further Electronic Flight Bag Applications and our analysis of Vistair’s other cloud-based services has

convinced us that using combined developmentalprocesses, these will improve our compliance and cut costsas we move towards the goal of a paperless cockpit for all

our operations. The proactive approachthat we have seen from Vistair during ourprevious work gives us confidence thatwe can realise our joint requirements”.

Vistair’s founding Managing Director,Ian Herbert, said: “Flybe has alwaysbeen a visionary airline and was one ofthe ‘early adopters’ for our SafetyNetsafety management service, and hasnow decided to expand our relationshipto look after their technical manuals,

provide an EFB solution in the shape of the iPad, and the“Touch” notices service. “This extension of our role withFlybe will use state of the art technology to deliver a morereliable and paper-free service”, said Mr Herbert.Inset Picture: Flybe’s Director of Flight Operations, Ian Baston (left) with Ian Herbert, Managing Director of Vistair.

RESOLVE provides a clearer picture of airworthiness datatlmNEXUS is pleased to launch the latest version of its web-enabled airworthiness issue management system, RESOLVE. New features include streamlined menu options, ‘managementactivities’ facility that speeds up meetings by automatically dissimilating actions and deadlinesto colleagues, enhanced issue workflow process steps (all configurable to meet the user’s needs) and improved performance to meet variable hosting solutions. RESOLVE has been well received within the MOD for digitizing issue management processes; capturing knowledge, providing astandardised way of working, and allowing one clear view of the airworthiness picture. The latter has enabled the capture of critical engineering and risk information for stakeholders. Sales Director David Appleton said he wassure clients would benefit from the new features and thathis team was already working on the next stage of development – integration across platform support tools. “Ensuring that RESOLVE links seamlessly with life-cycle and engineering support products is our next priority,” saidDavid. “Our aim is to provide our customers with an enriched picture of airworthiness – so that they can safelymanage their key products at the same time as providing genuine management information (MI) for stakeholders inreal-time – and of course value for money.”

For more information visit www.tlmnexus.com

•Web-based collaborative issue management system

•Ownership, categorisation and progression of issues across the project domain

•A repository for technical and operational issue data and related documentation and correspondence

•Approved by and able to be hosted on a Defence Information Infrastructure (DII) Web Platform

•For the MOD’s equipment operators, Product Team (PT) members, Defence Lines Of Development (DLOD) stakeholders, industry partners and auditors, RESOLVE is easily accessible across the Restricted Local Area Interconnect (RLI)

•‘My World’ alerts of issues, actions and changes of workflow state

• Includes MI reports that identify trends and performance against targets

06

NEW MEMBERS

Welcome to ournew members

Delivery Direct Logistics Limitedwww.delivery-direct.co.uk

Delivery Direct Logistics specialise in 24/7 urgent and dedicated transport in the UK and Europe of ambient and temperature controlled freight. With 16years experience moving AOGs of all typesfrom jiffy bags to full loads and frozencomposites to heated chemicals. DVA SCCleared drivers. 60 Minute response timesnationwide for normal AOG's. ISO9001 &14001 registered, DDL works closely withblue chip clients and prime global contractors in the Aerospace & Defence industry.

R B Engineering South West Limited www.rb-engineering.co.uk

RB Engineering is a family run business that was formed in 2001. They carry out fabrication,welding repairs and general engineering, onsitemaintenance and breakdown repairs for themanufacturing industry, vehicle maintenanceand general servicing. RB Engineering have recently purchased a Flow Dynamic IFB water jet cutting machine, allowing them to create 2D parts in most materials. They have 15 years experience in the quarrying and motorsport industries. and are also members of the MotorIndustry Trade Association.

World First UK Limitedwww.worldfirst.com

World First is a leading provider of international business-to-business payment solutions and foreign currencytransactions to corporate customers. The premise of our business is to reducethe costs more than others are willing tooffer. World First work with customers on a one to one basis learning about their business and putting in place thenecessary hedging structures to negateexchange rate risk.

R W Simon Limitedwww.rwsimon.co.uk

R W Simon design and manufacture high quality thermoplastic injectionmouldings for technical applications. Sectors supplied include medical, pharmaceutical, electronics and generalengineering. Full project managementand development is available. Tooling supplied and injection moulding up to270T lock, assembly, plastics machiningand clean room production.

PDS Projects Limitedwww.pdsprojects.co.uk

PDS Projects Limited was established in2002 to provide engineering expertise toaerospace and other industries. PDS specialise primarily in fatigue anddamage tolerance and acoustic fatigueanalysis. They provide bespoke services tocustomer's requirements.

AACEwww.aace.uk

AACE is a leading provider of programmemanagement, engineering and technicalsupport and system safety and environmental services to aerospace anddefence industry sectors. The company ensures a coordinated and optimised delivery by fully integrating into the customer base, thus guaranteeing bestvalue for money.

The Pre conference dinner had to be moved to the main hall due to the increase in numbers. With 94 delegates, speakers and board members in attendance the event proved even more successfulthan 2011. The dinner offered an informal networking opportunity which was enjoyed by all, in addition to meeting the WEAF board members. The dinner also provided the opportunity to thankAndrew Thompson for all the support he has given to WEAF, as he retires as Chairman of the WEAFBoard.

The 2012 Annual Conference had a bumper numberof exhibitors. With 46 exhibitors represented fromacross the UK at the event including Airbus,AgustaWestland, GE Aviation and Rolls-Royce. Theconference had 200 delegates registered and offeredsome thought provoking speeches from Mark Stewartof Airbus, James Gore – Bristol International Airport,Rees Ward – ADS, Tom Hitchings – The National Composites Centre, Rob Buckingham OC Roboticsand the Lucinda Dancer – Airbus Apprentice of theyear.

The coffee and lunch breaks provided invaluable networking at the trade stands for exhibitors and delegates alike.

In the afternoon we had Bloodhound, NewquayCornwall Airport and Flybe took to the stage to offertheir support to the industry by sharing their successstories.

Thanks to UBM Aviation Events for sponsoring thecoffee break and KDC Group for sponsoring the Lanyards.

If you have any suggestions for next year’s eventplease email cathy@weaf.co.uk and for all of youthat missed out this year, ensure you book early

to secure your space for 2013.

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Annual Conference

2012

Flying HighCelebration of Aerospace

and Defence

CONFERENCE 2012

07

DIARY DATESMAR ISO14001 WEAF, Clevedon20

MAR Prepare for Change Leigh Court, Bristol22

APR Aerolink Wales & West St Pierre Park, Chepstow18

MAYiNet Manufacturing Conference Taunton Racecourse, Taunton22

MAYAirbus - Supply Chain - its Future and Development BAWA Club, Filton, Bristol02

Visit our website for full details of all of our upcoming events - www.weaf.co.uk

08

CONFERENCE 2012

A new form of contracting for the Ministry of Defence (MOD) is rapidly approaching. Standardised

Contracting will be launching in Spring 2012, representing a step away from the use of Defence Conditions

(DefCons).

A set of standardised contracting templates will be rolled out across the MOD and will be the preferred

method of contracting with Industry for requirements up to £5 million.

Template 1 will cover the procurement of Less Complex Goods, under the value of £250,000 and has a

launch date of the 2nd April. Beta trialling is currently underway, with early indications that it is being well

received by both commercial officers and industry.

Development of additional Templates; building upon the core Terms and Conditions of Template 1, is

on-going with launch dates to be announced in the New Year. Although Template 1 may not impact your

business immediately, awareness of this will become a commercial necessity, as it forms the basis of all

future templates.

MOD spend data research into MOD contracting methods and practices identified common areas of

concern that consumed significant levels of effort for both MOD and Industry, namely: -

• Suppliers not fully understanding DEFCONS and how they interact with each other;

• Complexity of DEFCON based contracts for simple requirements;

• Disparate nature and construct of Contracts for similar requirements; and

• Time lost chasing contractual documentation (ie DEFCON 10’s and DEFCON 10B’s)

By developing fully narrated Standardised Contracting Templates, both parties will be fully aware of their

obligations and responsibilities and will assist in reducing the effort involved in managing the process.

Additional benefits in rolling out Standardised Contracting templates are numerous, such as:-

• The contract is simpler and self-contained;

• The legal basis for the Contract is the Sale of Goods Act;

• The legal position is clear to both parties;

• No negotiation will be permitted to the Terms and Conditions;

• Articles supplied are automatically deemed to have been accepted by the MOD 30 days after

delivery, unless they have been rejected; and

• The Supplier makes an offer; MoD accepts or rejects.

It is anticipated that these benefits will bring efficiencies to both the MOD and Industry and assist

in making the defence sector more competitive. It should be noted that Standardised Contracting

Templates will not completely replace established MOD contractual processes. These will remain

in use where appropriate and effective to do so.

For any further information, or clarification, please contact the Standardised Contracting team at

DGDCCS-1A-1@mod.uk , or telephone on 030 679 32603.

Standardised Contracting

from the MOD

09

NEWS