The UK’s Electronic-System Community

By: Ian Phillips Principal Staff Engineer, ARM Ltd, UK

12mar14 From ESCO Economic Workstream Report

available at http://www.esco.org.uk/economic-footprint/

Pdf and Tube available at http://ianp24.blogspot.co.uk/

What are Electronic-Systems? Are Systems whose end-product functionality is

fundamentally dependent on the deployment of Electronic Technology within them ... • They are the smart gadgets we love; and the ‘technology’ that enables

the sophisticated living that we value today. • They are complex alloys of Technologies and Know-How working

together to deliver Functionality ... • Electronic, Software, Mechanical, Optical, Transducers, Analogue, etc. • Research, Design, Reproduction, Automation, Qualification, etc.

• They are the result of Global Endeavour throughout their life-cycles • With Physical and Virtual contributors, of Components and Sub-systems

• They are the foundations on which the 21c will be built

... Our Societies dependence on ES is a strategic vulnerability

2

Who is the UK ES Community? These are UK Enterprises who’s individual Product feeds into

the life-cycle of Global Electronic Systems (ES) ... • It includes scientist/engineer roles in creation, configuration,

installation and maintenance. • Including instrumentation, tools, equipment and factory automation • But Excluding the non-technical use of such systems

• It includes ES knowledge and know-how enterprises • IP Business, Methodology, Quality, Reliability • Educators (School, University and Commercial)

• It includes the UK-Footprint of International Enterprises • It includes the ES-Departments of businesses that are primarily known

for their Non-ES product • Eg: Retail, Defence, Aerospace, Logistics, Health, Education, Energy, etc.

... We know the UK is quite active here; but at what scale?

3

Quantifying the Invisible We identified UK-Employees using the ...

• FAME commercial database of UK registered companies ..and.. • Collating that with HM Revenue & Customs tax-return database • Using BIS Analysts (to make sure we didn’t get to see individual data!) • With published ONS data (and a few other reliable sources)

We quantified UK-GDP Contribution using the ... • Income Approach to measuring GDP ...

• Not the Production or Expenditure Approaches (Economics 101) • With the assistance of Manchester University Business School • And more ONS data (and a few more reliable sources)

We sanity-checked and reviewed the Methods and Figures ... • And the calculations are freely available on the ESCO website

... We believe them; as does BIS and various EC audiences

4

Electronic Systems Enterprises (Overtly ES enterprises)

• Electronic Systems employs 435k UK people in 30k UK ES Enterprises • ~50% of employment is in the 250 companies with ave. size of 1,180

• Much better than National where only 22% of employment is in 250+ category • These are very successful ES businesses!

• ~80% of ES Enterprises are <10 employees • Huge growth opportunity for the overtly ES Sector

Employment Findings - 1 5

Embedded Electronic Systems (ES within other businesses)

• Employs 420k UK people in 440k UK enterprises (of 2.5M total) • ~40% of employment is in 250+ companies

• Nationally only 22% of employment is in 250+ category • ES is a Key Enabling Technology for successful companies

• Yet ~2m businesses in the UK today have no ES roles! • Huge opportunity for increasing roll-out of ES; and business efficiency.

Employment Findings - 2

-- --

-- --

6

UK Economic Contribution Using the Income Method, the UK Employees and their

UK Salaries equates to UK GDP contribution (By a factor ~2x Salary)

• Bigger and more successful: Than its monolithic electronic predecessors • Highly Productive: 5.4% of UK-GDP, from 3% of working population

7

Honourable mention for: Electronic Systems Capabilities and Opportunities (ESCO)

• Initiated Government Interest in this sector • Drove the creation of the full ESCO Report (www.esco.org)

• With its 5 Work-Stream Reports (Inc. the Economic) • It won Government and Community recognition ... ESCO Quantified UK-ESC; but did not Create it and does not Own it!

Re-Branded Electronic Systems COmmunity (ESCO) • ESCO-Council: Chair: Warren East, Co-Chair: R.Hon Michael Fallon MP

• With 11 Industry leaders • ESCO-Executive:

• 13feb14: ESCO CEO appointed (Sarah Macken) • Other Execs are Industry Associations (Evol’n of UK Electronic Alliance)

... ESCO will be Your/Our Voice and Representation to Government ... and it should Influence/Guide Us in our own best interests

8

Conclusions The 20c market for Electronics has evolved into the

insatiable 21c market for Electronic Systems ... • Products which are too complex to be created and supported by any

company or country; they are the children of global-enterprise • Many UK Enterprises have successfully evolved and offer their products

lucratively into the global market (Some old monoliths didn’t) • The roles of these UK enterprises is overtly technical; so not readily

understood or valued by non-scientifically qualified • The UK’s valued presence in ES is strategically important to the Nation

Employing 850,000 in the UK and adding ~5.4% to UK GDP • This is one of the biggest sectors in the UK (Tourism is bigger at 9%) • Highly efficient sector, producing 5.4% GDP from 3% of workforce • This sector is one of the greatest development opportunities in the UK

... The UK’s Electronic Systems Community is a story of success!

9