1 Introduction
1. The motorsport and aerospace industries represent
two jewels in the crown of UK manufacturing. The United Kingdom
is a world leader in the motorsport industry, and boasts the world's
second largest aerospace sector after the USA.
2. Both of these industries represent the best
of UK manufacturing, and form key parts of the higher value-added
economy. They have many common characteristics and often work
closely on shared challenges. The motorsport and aerospace industries,
are knowledge-intensive, utilise a highly skilled work force and
are constantly investing in Research and Development to improve
their product and to maintain their edge over international competition.
These are industries that need to form the basis of the UK economy
in the future, and are particularly important in efforts to rebalance
the economy to ensure the UK has an appropriate mix of service
and manufacturing industries.
3. This Report both celebrates the successes
of the industries and looks to the future to examine what role
the Government needs to play to ensure that these industries stay
ahead of their international competitors. In addition to examining
government policies directly targeted at these sectors the Report
discusses the wider issues which impact on the industries, including
whether the education system is properly equipping the UK workforce
with the skills that businesses need; the growing need for universities
and businesses to work together more effectively, and the role
that both sectors can play to reduce carbon emissions.
Our inquiry
4. In the course of this inquiry, we received
written submissions from 24 organisations. We held three oral
evidence sessions: the first concentrated on the aerospace industry,
with representatives from Airbus, BAE Systems, the Royal Aeronautical
Society and A|D|S, the industry trade association. The second
explored motorsport issues with the Motorsport Industry Association,
the Motor Sports Association, Lola—a motorsport SME (Small
and medium-sized business)—and Dr Dickison, a lecturer at
Coventry University. At our final session we questioned the Minister
responsible for these two sectors, Ian Lucas MP, Parliamentary
Under-Secretary of State, Department for Business, Innovation
and Skills.
5. We also undertook four visits in connection
with this inquiry. The first was to Bristol where we met representatives
from GKN and Airbus and visited the aerospace department at Bristol
University. During our visit to France and Italy, in connection
with our inquiry into "Exporting out of recession"[1]
we were able to visit Airbus' headquarters in Toulouse. Our third
visit was to Silverstone where we met with the track management,
academics, SMEs and the Brawn GP Formula One team.[2]
The final visit was to Rolls-Royce's base in Derby to discuss
its involvement in government-supported research projects. Our
visits always provide us with an excellent opportunity to be appraised
of activity on the ground. Through discussions with people who
work in these industries we are able to gain a much fuller understanding
of what the Government needs to do to support these sectors and
to protect their positions as global leaders. A full account of
our visits can be found in the Annex at the end of the Report.[3]
Space sector
6. While this Report concentrates on the motorsport
and aerospace industries, we should not forget the vibrant space
sector which forms part of the aerospace industry. During the
course of this inquiry we became concerned that not enough attention
was being paid by Government to the space sector, something we
ourselves were guilty of when drawing up our terms of reference
for this inquiry. We believe that this is often the result of
an over-concentration on the scientific aspects of space which
overlooks the fact that there is a hi-tech industry which has
developed from it—most notably the manufacturing of satellites.
The consumer derives enormous benefits from space technology of
which the most noticeable are satellite television and GPS navigation
systems. The UK has a flourishing space sector, which was clearly
described to us by EADS Astrium, the space branch of the European
aerospace and defence firm:
Space is one of the UK's most hi-tech, high-skilled,
high-growth, value adding and strategic sectors, adding £6
billion to the UK economy in 2008 (including £500 million
directly in the manufacturing sector), and supporting over 18,000
direct jobs, and 60,000 jobs indirectly. The UK has built up a
7% slice of a fast-growing global space market, estimated to be
worth €500 billion by 2020. Space is one of the UK's most
R&D intensive industries, on a par with pharmaceuticals and
aerospace and six times the national average.[4]
7. Despite this, it is the scientific agenda
which dominates discussions of space. Ian Lucas MP, Parliamentary
Under-Secretary of State, illustrated this point when he said:
I tend to associate space with the Apollo missions
still, but I think there is a much more basic involvement of space
in industry as a whole now, and I think that we need to reflect
that in our thinking.[5]
We do not underestimate the importance of the scientific
aspect of space research, but we believe that space now needs
to be seen as part of mainstream high-technology manufacturing
and industry; it is no longer a purely scientific endeavour. Due
to time constraints we have not been able to give the space sector
the attention it deserves during this inquiry. We recommend to
our successor committee that it considers conducting an inquiry
into the role of the space sector in the UK economy.
1 Business, Innovation and Skills Committee, Third
Report of the Session 2009-10, Exporting out of recession,
HC 266 Back
2
Brawn has since been bought out by Mercedes. Back
3
See p 63 ff. Back
4
Ev 97 Back
5
Q 256 Back
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