Aero Services.Global companies are heavily involved in supporting current and legacy programmes by offering quality components, assemblies and sub-systems, by attaining the highest quality standards and excellent delivery performance. 

Primary Markets  

Civil Aerospace

The commercial aerospace market is seeing unprecedented growth due to wealth being generated by India, China, the Middle East and Asia-Pacific regions. The order backlog of large jets exceeds 10,000 units and the demand for new generation aircraft is forecast to continue to grow over the next twenty years.

The demand is being driven by increasing passenger numbers (nearly 3.5 billion passengers flew last year, according to the International Air Transport Association), a rise in airfreight traffic, liberalised airspace and economic factors such as noise, pollution and running costs. New build methods and materials are speeding production and this coupled to the overall demand is placing the engineering supply chain under great pressure.

Second generation aircraft are being developed to meet modern market demands and this is going to impact the global marketplace by further increasing demand. There are also new entrants who intend challenging the market dominance of Boeing and Airbus and the other single aisle manufacturers. The aerospace supply-chain is under considerable pressure to keep pace with the OEM demands and the increase in build-rates. Production forecasts are placing great pressure on the lower Tiers to meet the rate of production of components, systems, and services. The current trend is to consolidate by family part (i.e., components, aero-structures, electronics, interiors, etc.) to gain economies of scale, however, inevitably this situation is already having a significant impact on the supply-chain with many smaller businesses already struggling to meet manufacturing expectations and investment requirements. In turn this situation also represents a tremendous opportunity for consolidation within the aerospace supply-chain with SME’s being integrated to form engineering and service groups that have a multi- faceted product offer, whilst adding the advantages of economies of scale that integrated high-tech engineering led groups can offer, whilst strengthening the supply-chain.

AS.G companies provide precision components for Airbus and Boeing and the other major OEM’s and t heir Tier 1 supply chains through long-term agreements (LTA’s) supported by dedicated cell manufacture, Kan-Ban stocks and AOG speed-shops. Capabilities include; CNC machined assemblies, supply chain management (SCM), design, tooling, fixtures and jigs.

Defence

Defence markets are experiencing an increased spend with the current predictions looking at a 3.2% increase. The Lockheed Martin Joint Strike Fighter programme is ramping up and necessitating heavy investment and increasing defence and military asset and ordinance spending. Defence budgets are increasing in several areas of the globe outside the USA and Europe, notably in the United Arab Emirates (UAE), Saudi Arabia, India, South Korea, Japan, China, and Russia, as these countries invest in modern defence platforms and technologies.

The defence OEM’s are investing in the latest equipment and techniques to reduce cost and lead-times. Digital product development and computer aided design (CAD/CAM) have become game changers by creating significant efficiencies in both the product development process and production. Lean manufacturing and six sigma initiatives are having significantly impact on SME’s in reducing waste and inefficiency in the production process, as are other development programmes such as the improving quality standards such as AS9100 Rev C and improvement programmes such as Aerospace Supply Chain Excellence (ASCE) and Supply Chain 21 (SC/21), which are being sponsored by the OEM’s and Tier 1’s to create a second-generation supply chain that understands and can meet production needs.

AS.G companies support a number of platforms and are positioned to expand activities in this sector, in support of BAE Systems and defence OEM’s and their Tier 1 supply chains as the JSF production and other defence critical programmes start to ramp-up to full production. AS.G are investing heavily to support future and legacy platforms.

Aero propulsion systems

The aero engine market growth is a direct correlation of the commercial aerospace and defence sectors, matching the rapid rise in the civil and aircraft defence markets.Aircraft OEM’s work in partnership with the specialist aero propulsion manufacturers and this gives airline operators the opportunity to choose the best propulsion units for the routes they fly, when they buy an aircraft. Engine OEM manufacturing is consi stently seeking to design and produce more fuel efficient propulsion units that are environmentally efficient.

There is a forecast demand for over 140,000 engines (including regional and executive jets) worth in excess of US$800 billion, over the next 20 years. Most of this demand is expected to emerge out of the faster growing markets of the Middle East, Asia-Pacific and Latin America. Mature markets of Europe and North America will also see demand rise as airlines replace thousands of older aircraft and the after- market and services opportunity created by this demand is estimated to be in excess of US$600 billion over their service lives.

Arrowsmith Engineering (Coventry) Limited serve a Blue Chip client base including Roll-Royce Aero Engines and their Tier 1 supply chain, providing propulsion unit components and through utilisation of their highly sophisticated new product introduction (NPI) processes that enable critical components to pass quickly into full production, ‘on time – in full’.

Maintenance, Repair & Overhaul (MRO)

Commercial airline fleets are forecast to grow from nearly 25,000 aircraft at the beginning of 2017 to over 35,000 by 2027. Aircraft deliveries to airlines will total about 20,000 over the period, so retirements of older technology airframes will total about 10,000 during this period. The increasing rate of new aircraft deliveries will result in a significant technology shift over the period and by 2027 it is anticipated that 58% of the global fleet will be new-generation aircraft.Defence and military aircraft are going through an evolutionary stage with far more sophisticated platforms and operating often in hostile environments, both in terms of action and environment and the maintenance and fast turnaround is an extremely important factor in maintaining levels of aircraft readiness.

The MRO industry is evolving significantly to meet the changing demand which is driven by growth, geographic shifts, fleet mix trends, and new technology. These changes have seen an operating shift from the aircraft OEM’s into the MRO space, with the OEM’s increasing their share of the aftermarket with strategies that include MRO maintenance and servicing packages with new aircraft. Commercial airline MRO growth is forecast to represent a 3.8% compound annual growth rate over the next 10-years, growing from the current demand of $75.6 billion to just over $109 billion by 2027.

New-generation aircraft are creating reduced operating costs and new technologies that include new construction materials (carbon fibre composites, hybrid alloys, and special coatings), as well as new data collection and measurement tools designed to provide advanced prognosis capabilities. Properly harnessed, the capability for maintenance programmes to take action before a component fails promises to improve reliability and further reduce operating costs.

The aero engine market also features a high share of Maintenance Repair and Overhaul (MRO) as a percentage of total sales revenues. The largest part of revenue and profit margin for the major OEM aero engine manufacturers now comes from after-market activities; the sale of spare parts, the rent/lease of engines and ‘life of product’ ‘maintenance packages.

AS.G companies are currently not direct MRO providers, however, they supply both civil aircraft and defence platforms with ‘spare’ components and market support, as well as through their speed shops and AOG facilities. 

 

Secondary Markets

Automotive

The UK has benefited from significant investments with a number of the world’s major vehicle manufacturers including; BMW, Ford, Vauxhall, Jaguar-Land Rover, Nissan and Toyota which recognises how attractive the UK is to this sector and the global nature and global nature and dynamism of this industry and the supply chains that feed into the OEM’s are also experiencing demand increase and growth opportunities. Automotive currently accounts for 10% of the UK’s trade in goods and suppliers with a turnover of £60.5 billion and £4.8 billion in added value last year.

This sector is vital to the UK economy and accounts for 4% of GDP (£60.5 billion) and currently provides employment for more than 700,000 people in the UK whilst producing 1.6 million cars and commercial vehicles and almost 2.6 million engines in 2013, resulting in the UK being the second largest vehicle market and fourth largest vehicle manufacturer in the EU.

AS.G companies serve many manufacturers and model ranges with precision engineered components.

Motorsport and Formula 1

Motor racing in all of its forms is a high technology sector that requires significant engineering innovation and research and development and many of the advanced process and techniques it creates are subsequently used in the general automotive industry. The UK government has recognised the importance of this sector and continues to supply funding and incentives to encourage individuals and companies to push the boundaries of innovation.

Formula 1 is at the global forefront of engineering ingenuity and it is of little surprise therefore, that so many aerospace and defence SME’s also support this specialist supply chain. The majority of F1 teams are based in the UK, in the vicinity of Silverstone and this area is where most of the engineers, aerodynamicists and designers live. Operating in this arena dictates a very high level of engineering competence and the ability to produce components and products, to exacting specifications at very high speed.

Other Motorsport areas such as; other single seat formulas, World Cup Rallying, Grand Prix motorcycle racing, saloon car racing formulas and the myriad offshoots are popular in the UK and many of our businesses in these sectors have international influence.

AS.G companies serve this dynamic marketplace with rapid response parts, composite research & development, design and manufacture, tools, jigs and fixtures.

Nuclear

Nuclear power is back at the top of the political agenda. It currently generates around one fifth of the UK's  electricity (Getty), however, all but one of its existing power stations are due to close by 2023.

The UK has 15 operational nuclear reactors at seven plants (14 advanced gas-cooled reactors (AGR) and one pressurised water reactor (PWR)), as well as a nuclear reprocessing plant at Sellafield.

No reactors have been built since the 1980s, as accidents, spiralling decommissioning costs and the problem of nuclear waste eroded enthusiasm. But with soaring oil and gas prices, dwindling fossil fuel reserves and pressure to tackle climate change, the government has renewed its support for nuclear power an is backing a new generation of atomic power stations because it believes they provide the necessary security of supply while helping reduce carbon emissions.

Rolls-Royce is preparing a small modular reactor (SMR) design, a close-coupled four-loop PWR design. Power output is 450 MWe which is above the usual the usual range considered to be a SMR. As of 2017 Rolls- Royce is seeking UK government finance to support further development.

Japanese engineering giant Hitachi is one company leading the way in this area; in 2012 it acquired UK- based energy business Horizon Nuclear Power, with a view to bringing their advanced boiling water reactor  (ABWR) technology to a new market. This reactor is already in operation in four power plants across Japan. Not a utility, but an equipment provider, Hitachi has been clear throughout that it will not remain the sole owner of Horizon long-term. Indeed, their European business focuses on delivering ABWRs as a contractor to Horizon - which operates under separate management structures.

Some of AS.G companies are working on Fit for Nuclear programmes in anticipation of any governmental decisions to resume a nuclear powered energy base and recently, Arrowsmith has been approved as ‘Fit for Nuclear’ under the F4N Programme, enabling the Company to provide certified parts for the civil nuclear energy industry. As part of this approval, Arrowsmith has installed a business action plan that will inform and educate the workforce and allow the company to conform to the requirements needed for nuclear industry.

 

 

AS.G companies provide precision components for Airbus and Boeing and the other major OEM’s and their Tier 1 supply chains through long-term agreements (LTA’s) supported by dedicated cell manufacture, Kan-Ban stocks and AOG   speed-shops. Capabilities include; CNC machined assemblies, supply chain management (SCM), design, tooling, fixtures and jigs.