Memorandum 42
Submission from the Institution of Mechanical
Engineers
INTRODUCTION
The Institution of Mechanical Engineers (IMechE)
is a professional body representing around 75,000 professional
engineers, working in all sectors of industry, including a growing
number in space-related industries. We welcome the opportunity
to assist the work of the Committee by submitting evidence to
this inquiry.
1. The impact of current levels of investment
on space-related activities on the UK's international competitiveness
in this sector
1.1 Space is a high-value, high technology
global industry and Britain a world leader in many aspects. Jobs
in the sector are highly skilled, and more than two thirds of
the workers hold a university degree. The industry generates about
£4 billion a year for the British economy, representing an
excellent rate of return for the rather modest sums invested over
recent years.
1.2 The global space sector is growing rapidly,
as society becomes ever more reliant on space-based technologies,
eg for TV, mobile phones, weather forecasting and navigation,
and as space-derived information becomes ever more crucial, eg
climate monitoring, disaster predication and relief. As the sector
grows, it is absolutely vital that UK government and industry
investment also grows, or else we risk falling far behind our
international competitors.
1.3 To develop a high-tech, highly skilled
economy that can compete in global markets, and play our full
part in tackling climate change and natural disasters, we need
to sustain our support for, and take a leading role in, programmes
such as ARTES, GMES and Galileo. We are concerned that recent
cuts in government funding in some of these areas, along with
the UK's low position in the international league table of space-related
investment (as a proportion of GDP), leaves us vulnerable to competition
and risks undermining our hard-earned market and political influence.
1.4 It is encouraging that industry turnover
is showing strong growth and is now approaching £5 billion.
However, funding agencies have to be consistent in their funding
with continuous support of long term programmes.
2. The benefits and value for money obtained
from participation in the European Space Agency and other international
programmes
2.1 We support UK participation in the European
Space Agency (ESA) and other international programmes, so long
as they are focused on meeting clear, user-defined needs.
2.2 ESA provides a strong framework through
which UK companies can develop successful businesses and specialist
capabilities, and investments made in it have seen excellent rates
of return. Its benefits to the UK include:
— Development and support of a world-class
science and engineering base.
— Attracting science and engineering
graduates into industry and academe.
— World leadership in specialist fields,
eg environmental monitoring.
— Development of spin-off technologies
and industries.
— Access to global markets, eg through
Galileo.
2.3 For the UK to derive maximum benefit
from ESA and other international programmes, it must engage fully,
both in funding terms and in influencing the direction, planning
and prioritising of future programmes. With sustained participation
in ESA, and other programmes, such as those through EUMETSAT,
valuable alliances and specialisms can be developed which will
provide long lasting industrial and political benefits.
2.4 ESA projects often provide the opportunity
for upstream industry to develop ambitious technology within a
framework of managed risk not typical of the wider commercial
space industry. Being at the forefront of this type of technology
development in the UK is crucial to maintaining our innovative
engineering capabilities. Products developed within ESA programmes
have a proven track record of success in wider engineering markets,
further increasing the contribution to UK competitiveness.
2.5 ESA programmes have in recent years
formed strong collaborations, especially within the science and
Earth Observation programmes, with emerging space markets. Forming
strong relations with these countries at this stage will aid access
to these markets as they develop.
2.6 If the level of investment is insufficient,
or if the strategy for directing this investment is not clear
(making it difficult for UK industry to aim for consistent involvement),
then key capabilities may be lost.
2.7 The funding route is also somewhat fragmented
with several government agencies providing the funding to ESA
programmes. This may lead to conflict (who should pick up the
tab for a certain programme) and a lack of a unified process of
funding. This disparate spread of funding agencies perhaps reflects
the reach of the industry on different areas of our lives but
it also potentially leaves some programmes susceptible to financial
pressures from a wide range of other areas of government. The
BNSC has perhaps not been as effective as it should in this role
and a more centralised process would be beneficial for the UK.
3. The maximisation of commercial benefits
and wealth creation from UK space-based technologies through innovation
and knowledge transfer
3.1 Global markets in space-based technologies
are growing rapidly (10-15% per annum being typical) and estimates
put the overall size of that market at around $100 billion. It
is vital that UK companies derive the maximum possible commercial
benefits from this market. To do so, industry, academia and government
must work together to develop our world-leading expertise and
innovation in specialist areas such as telecoms, navigation and
environmental monitoring.
3.2 The UK has a strong record of innovation
and knowledge transfer as a direct result of participation in
European space programmes. Within the space industry there are
notable examples such as small satellite development, communication
and navigational satellites as well as many examples of world
leading technology at subsystem or equipment level.
3.3 Technology transfer into wider industry
is also evident with space technology being employed across many
high value terrestrial sectors from security and scientific research
to medical and industrial equipment. The downstream benefits are
also significant, as evidenced by the tremendous growth in revenue
streams that have been created as a result of space infrastructure.
4. The delivery of public benefits from the
space-related activities of different government departments (eg
Defra, MoD, DTI, DfT) and the co-ordination of these activities
4.1 The public benefits from space-related
activities are numerous and expanding rapidly. They include navigation,
climate and other environmental monitoring, disaster monitoring
and relief assistance, communications, defence and security surveillance
and broadcasting. They can be used to support areas of government
policy, eg road pricing, and can help to attract young people
into science and engineering courses and careers.
4.2 The British National Space Centre (BNSC)
was established to co-ordinate public sector space activities
and act as a focus for UK involvement with ESA and other international
programmes. While it has generally been successful in this regard,
there is scope for greater knowledge sharing and co-ordination,
not just within government but also involving industry. Such a
partnership would help to more effectively co-ordinate responses
to user-defined needs and opportunities, and help to spread the
identification and exploitation of space-based solutions into
new areas of government.
4.3 BNSC provides a useful focus for some
activities such as careers and as a gateway to government. It
has also, at times, been able to support development of new technology
through its funding programmes. It must, however, be seen to manage
such funding effectively to give the best returns. It has not
perhaps been the unifying body that it could have been since the
responsibility for many decisions still lies with the member departments.
5. Support for space-related research and
the UK Skills Base
5.1 The future success and prosperity of
UK space-related industry depends absolutely on the availability
of highly skilled scientists and engineers. Support, both in research
funding and long-term policy commitments, is needed to ensure
the flow of people that industry needs. Whilst the bulk of the
near-market support should be in the specialist areas where UK
already has strength (as defined in our answer to Q3), it is important
to adequately spread research funding across a broad spectrum
of areas. This will allow the UK to identify and exploit new opportunities
in new areas where commercial, environmental and/or social benefits
can be obtained, while also offering the most attractive range
of opportunities for young people considering a career in space
technology.
5.2 Active and visible involvement in ambitious
programmes in both industry and academia has the potential to
encourage future generations to consider careers (or at least
gain increased awareness and understanding) in science and engineering.
There is still a perception that the UK isn't involved in space
to the degree that it actually is, and so much of the work carried
out in the industry is not noticed. The future skills base is
one of the biggest concerns within the industry and so should
become a priority. The development and support of education programmes
could be improved at a comparatively modest cost.
October 2006
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