Aerospace opportunities in France
Sector briefing
Aerospace Opportunities in France
Why France? The French aerospace industry has an annual turnover of around 36 million euros which is roughly the same as the British aerospace sector. Around 70% of this turnover is in the civil sector and 30% in defence. Prime Contractors accounted for 53% of revenue, equipment manufacturers 29%, and engine manufacturers 18%. The order-books have been slower to fill over the last few years, but there is still a backlog big enough to keep the industry going at present production levels for the next five years. All the sub-sectors, from airframes, engines, equipment to avionics, are present in the market. Find general information on France market conditions on UKTI's website. The Doing Business Guide for France gives an overview of the French economy, business culture, potential opportunities and an introduction to other relevant issues.
“The prime contractors Airbus, Dassault, ATR, Eurocopter and Snecma are all moving management of procurement down their supply-chains and this also means new opportunities”
UK Trade & Investment Sector briefing: Aerospace opportunities in France
Opportunities General The economic crisis is still making things difficult for the industry, and the increasing value of the euro is once again eroding competitiveness. The supply-chain is under pressure to be ever more competitive and to source outside the euro-zone. This represents an opportunity for British suppliers who can demonstrate that they can provide high quality, keen pricing and reliability. The prime contractors Airbus, Dassault, ATR, Eurocopter and Snecma are all moving management of procurement down their supply-chains and this also means new opportunities. Suppliers who used to sell directly to the primes are now often having to negotiate at least one tier below. Risk-sharing, however, has also trickled down the supplychain from the prime contractors and is becoming widespread. Airbus The situation at Airbus is typical of the trend: Airbus is now well engaged in a policy to limit their activity as much as possible to designing aircraft, assembling complete modules, and selling to customers; detailed design, development and manufacturing are being delegated to the first tier suppliers. To implement this change Airbus devised a restructuring programme called “Power 8”. It had become clear that a deficit of integrated organisation was limiting Airbus growth, innovation, and competitiveness. It had also been the fundamental reason for A340500/600 maturity problems, the failure to industrialise and ramp-up the A380 on time, and for the A350 hesitations that put Airbus behind the rival Boeing 787. Through the Power 8 programme, their business model is changing to make sure they set up lighter and more cost-efficient processes, focus on core activities, and establish a network of long-term partners.
Other manufacturers Airbus is hugely important to the French aerospace industry, but it is not the whole story. Dassault Aviation manufacture not only military aircraft but also their range of Falcon Business Jets and they are increasingly involved with UAVs. They have a turnover of over 4 billion euros. ATR is a Franco-Italian JV based in Toulouse producing increasingly popular Regional Turboprops. Eurocopter in Marseilles is now the world’s biggest producer of civil and military helicopters with 527 deliveries last year. SAFRAN is the holding company for Snecma, Turbomeca, Messier Dowty, Aircelle and many others. EADS is the Franco-German holding company for Airbus, Eurocopter, MBDA, and Astrium. R&D 17% of the French industry turnover is reinvested in R & D. There is a big demand on research facilities and this will increase over the next few years with a demand for quieter, cleaner and more fuel-efficient aircraft. The key areas of research will be in aerodynamics, advanced materials and propulsion systems, cockpit avionics and flight management systems. Air traffic management will also be a priority. Business Opportunities If you have any questions on the opportunities above, contact the UKTI contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI’s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI’s business opportunities service on the UKTI website.
Airbus is finalising the industrial production of the A380 and currently developing the A350 XWB and the A320 “Neo”. For these new aircraft and for the existing top-selling models in the A320 family and the long-range A330, Airbus and their supply-chain are keen to find the most competitive quality suppliers available. UK Trade & Investment Sector briefing: Aerospace opportunities in France
Major events and activities
UKTI contacts
PARIS AIR SHOW - Le BOURGET http://www.uktiatparisairshow2011.com www.salon-du-bourget.fr Contact: Neil Semple Email: [email protected] Time: 20 – 26 June 2011
Alastair Roberts Trade & Investment Manager British Consulate Bordeaux Tel: (00 33) 557 222119 Email: [email protected] www.ukti.gov.uk
AEROSOLUTIONS www.aerosolutions-bordeaux.com Time: 7- 8 December 2011 B 2 B event held in Bordeaux on alternate years to Aeromart (see below).
Catherine Cestari British Consulate Bordeaux Tel: (00 33) 557 222114 Email: [email protected] www.ukti.gov.uk
AEROMART www.aeromart.fr Time: 4 – 6 December 2012 International Business Convention for Aerospace Industries held in Toulouse Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI’s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events
UK Trade & Investment Sector briefing: Aerospace opportunities in France
Next steps How UKTI can help British companies wishing to develop their business in the French market are advised to undertake as much market research and planning as possible in the UK. UKTI’s team in France, with its wide local knowledge and experience, can provide a range of services to British-based companies wishing to grow their business in global markets. This can include: • Provision of market information • Validated lists of agents/distributors • Key market players or potential customers in the French market • Establishment of interest of such contacts in working with you
• •
Arranging appointments Organise seminars or other events for you to meet contacts and promote your company in the French market
This work is available via our Overseas Market Introduction Service (OMIS) a chargeable service which assists British-based companies wishing to enter or expand their business in overseas markets. To find out more about commissioning this work, or accessing other UKTI services and specialist advice, please visit the UKTI website to find contact details for your local UKTI office.
Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-governmentlicence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected] This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000.
UK Trade & Investment Sector briefing: Aerospace opportunities in France
Aerospace Opportunities in France
Why France? The French aerospace industry has an annual turnover of around 36 million euros which is roughly the same as the British aerospace sector. Around 70% of this turnover is in the civil sector and 30% in defence. Prime Contractors accounted for 53% of revenue, equipment manufacturers 29%, and engine manufacturers 18%. The order-books have been slower to fill over the last few years, but there is still a backlog big enough to keep the industry going at present production levels for the next five years. All the sub-sectors, from airframes, engines, equipment to avionics, are present in the market. Find general information on France market conditions on UKTI's website. The Doing Business Guide for France gives an overview of the French economy, business culture, potential opportunities and an introduction to other relevant issues.
“The prime contractors Airbus, Dassault, ATR, Eurocopter and Snecma are all moving management of procurement down their supply-chains and this also means new opportunities”
UK Trade & Investment Sector briefing: Aerospace opportunities in France
Opportunities General The economic crisis is still making things difficult for the industry, and the increasing value of the euro is once again eroding competitiveness. The supply-chain is under pressure to be ever more competitive and to source outside the euro-zone. This represents an opportunity for British suppliers who can demonstrate that they can provide high quality, keen pricing and reliability. The prime contractors Airbus, Dassault, ATR, Eurocopter and Snecma are all moving management of procurement down their supply-chains and this also means new opportunities. Suppliers who used to sell directly to the primes are now often having to negotiate at least one tier below. Risk-sharing, however, has also trickled down the supplychain from the prime contractors and is becoming widespread. Airbus The situation at Airbus is typical of the trend: Airbus is now well engaged in a policy to limit their activity as much as possible to designing aircraft, assembling complete modules, and selling to customers; detailed design, development and manufacturing are being delegated to the first tier suppliers. To implement this change Airbus devised a restructuring programme called “Power 8”. It had become clear that a deficit of integrated organisation was limiting Airbus growth, innovation, and competitiveness. It had also been the fundamental reason for A340500/600 maturity problems, the failure to industrialise and ramp-up the A380 on time, and for the A350 hesitations that put Airbus behind the rival Boeing 787. Through the Power 8 programme, their business model is changing to make sure they set up lighter and more cost-efficient processes, focus on core activities, and establish a network of long-term partners.
Other manufacturers Airbus is hugely important to the French aerospace industry, but it is not the whole story. Dassault Aviation manufacture not only military aircraft but also their range of Falcon Business Jets and they are increasingly involved with UAVs. They have a turnover of over 4 billion euros. ATR is a Franco-Italian JV based in Toulouse producing increasingly popular Regional Turboprops. Eurocopter in Marseilles is now the world’s biggest producer of civil and military helicopters with 527 deliveries last year. SAFRAN is the holding company for Snecma, Turbomeca, Messier Dowty, Aircelle and many others. EADS is the Franco-German holding company for Airbus, Eurocopter, MBDA, and Astrium. R&D 17% of the French industry turnover is reinvested in R & D. There is a big demand on research facilities and this will increase over the next few years with a demand for quieter, cleaner and more fuel-efficient aircraft. The key areas of research will be in aerodynamics, advanced materials and propulsion systems, cockpit avionics and flight management systems. Air traffic management will also be a priority. Business Opportunities If you have any questions on the opportunities above, contact the UKTI contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI’s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI’s business opportunities service on the UKTI website.
Airbus is finalising the industrial production of the A380 and currently developing the A350 XWB and the A320 “Neo”. For these new aircraft and for the existing top-selling models in the A320 family and the long-range A330, Airbus and their supply-chain are keen to find the most competitive quality suppliers available. UK Trade & Investment Sector briefing: Aerospace opportunities in France
Major events and activities
UKTI contacts
PARIS AIR SHOW - Le BOURGET http://www.uktiatparisairshow2011.com www.salon-du-bourget.fr Contact: Neil Semple Email: [email protected] Time: 20 – 26 June 2011
Alastair Roberts Trade & Investment Manager British Consulate Bordeaux Tel: (00 33) 557 222119 Email: [email protected] www.ukti.gov.uk
AEROSOLUTIONS www.aerosolutions-bordeaux.com Time: 7- 8 December 2011 B 2 B event held in Bordeaux on alternate years to Aeromart (see below).
Catherine Cestari British Consulate Bordeaux Tel: (00 33) 557 222114 Email: [email protected] www.ukti.gov.uk
AEROMART www.aeromart.fr Time: 4 – 6 December 2012 International Business Convention for Aerospace Industries held in Toulouse Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI’s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events
UK Trade & Investment Sector briefing: Aerospace opportunities in France
Next steps How UKTI can help British companies wishing to develop their business in the French market are advised to undertake as much market research and planning as possible in the UK. UKTI’s team in France, with its wide local knowledge and experience, can provide a range of services to British-based companies wishing to grow their business in global markets. This can include: • Provision of market information • Validated lists of agents/distributors • Key market players or potential customers in the French market • Establishment of interest of such contacts in working with you
• •
Arranging appointments Organise seminars or other events for you to meet contacts and promote your company in the French market
This work is available via our Overseas Market Introduction Service (OMIS) a chargeable service which assists British-based companies wishing to enter or expand their business in overseas markets. To find out more about commissioning this work, or accessing other UKTI services and specialist advice, please visit the UKTI website to find contact details for your local UKTI office.
Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-governmentlicence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected] This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000.
UK Trade & Investment Sector briefing: Aerospace opportunities in France
