Boeing in Britain
Boeing has been in the UK for over 40 years and the UK remains a major market for the company’s commercial and defence businesses. Traditionally, the UK has been the biggest source of supply outside of its US base and historically Boeing has spent around US$2.5 billion annually on various supply chain components. The company’s presence in the UK has created 30-40,000 jobs through a number of Boeing businesses and its subsidiaries, such as Aviall, Alteon, Jeppeson and Continental Data Graphics.
An important aspect of being in the UK for Boeing is its significant research and development programmes and relationships with academic institutions. In the last few years, the company has worked with some of the leading British Universities. It has conducted a number of research projects in the field of highly networked systems with Cambridge University; worked with Cranfield University to do research into an Integrated Vehicle Health Management system (IVHM), exploring new technologies for vehicle support and maintenance; and has jointly founded an Advanced Manufacturing Research Centre (AMRC) with Sheffield University, to explore ways to reduce the time and cost of producing aerospace products whilst improving their quality and performance. The AMRC has seen significant success since it was set up in 2005, and already a second research building has been constructed, and was opened by HRH, The Duke of York in 2008.
“The UK universities with which we do research are highly regarded around the world,” says Sir Roger Bone, President of Boeing UK. “They have a great reputation for expertise in the fields of aviation, aeronautics and aircraft development and there is a sound relationship between research and applications in the real world. Relatively few universities can do this well, but these British universities really excel at it.”
Success in Britain
Over the last three years, Boeing has made conscious efforts to strengthen its presence in the UK and position itself as an onshore company. As a foreign company with a secure onshore presence, Boeing is able to bid for substantial contracts with UK government institutions, such as the Ministry of Defence.
Nearly two years ago, Boeing opened a new facility near Bristol which marked the beginning of this strategy implementation. Currently employing 25 people, most of the work in Bristol is aligned with the Ministry of Defence and last autumn Boeing won the Systems of System Integrator role for Britain’s Future Rapid Effect System (FRES). This facility is expected to grow. In addition, in collaboration with QinetiQ, Boeing has established the Portal, a new facility in Farnborough tasked with providing robust experimental information such as detailed mission briefs and analysis plans.
Boeing expects to maintain its research profile here. “At present, our overall annual research budget for the UK is around US$25 million,” says Sir Roger Bone. “The bulk of this is for work with QinetiQ and the rest is spread amongst Boeing’s university collaborations. We are helping to advance many sectors in the UK, as the investment we have made in certain fields can now be applied to other industries. For instance, the work done in Cranfield with IVHM systems can be used in the automotive and medical sectors. We have also set up collaborative research with Formula One in its area of computational fluid dynamics, since there are synergies in aerodynamic research between racing cars and aeroplanes.”
Remaining committed
As with any company, Boeing is affected by global economic conditions. In the commercial aviation market, changes in demand for air travel and fluctuating fuel prices are felt by the company. Its business in the defence sector is also affected, as Government expenditure is squeezed, but aircrafts such as Apache, Chinook and C-17 remain operational requirements for national security.
Looking to the future, Boeing remains committed to the UK and to its current investments. Maintaining its contact with government organisations such as UK Trade & Investment is very important to the company.
“We value our ties with UK Trade & Investment enormously,” says Sir Roger Bone. “When we are looking to find a new research and development partner we actively seek its leadership and welcome its advice. We see how the UK, with the help of UK Trade & Investment, is constantly improving its promotion of UK advanced engineering capabilities abroad in a more sophisticated and sensitive approach that makes investing in the UK an enticing prospect.”
Fast Facts:
Company Boeing
Country: USA
Industry: Aerospace
Website: www.boeing.com
