Respond, recover and thrive

Simon Weston, managing director of Aero Service Global Group, explores how the aerospace sector can thrive in the ‘new normal’.

There has never been a year like the one we’re currently working through and the aerospace sector - often protected from cyclical economic shocks - has been affected more than most.

Commercial air travel was grounded for the best part of three months and passenger numbers remain a long way from reaching pre-virus volumes, leaving many of the industry primes with no other choice but to halt new build programmes.

As expected, this is already being seen in the supply chain. With seven companies all involved in supplying a mix of simple brushes, complex mill-turned parts, 5-axis milled parts and tooling to this arena, the Aero Services Global Group (AS.G) has been at the coalface of dealing with the fallout, making difficult decisions quickly and restructuring parts of our business to ensure we emerge stronger and in a position to maximise the recovery.

At the heart of our approach has been ‘Respond, Recover and Thrive’, a group-wide strategy introduced in the early days of the pandemic and designed to give us a collective pathway out of Covid-19.

We’ve taken full advantage of the Government’s furlough scheme, with about a third of our 370-strong workforce put on the job retention scheme and we’ve looked at ways where we can improve our efficiencies through manufacturing optimisation, factory layout and doing things even better.

Our staff have been fantastic. Many worked throughout, some have played a key part in supplying components to the VentilatorChallengeUK consortium. Where possible, we are trying to protect as many jobs as we can, so we can safeguard vital skills that will be crucial when things pick up.

The pandemic has reinforced how resilient the aerospace sector can be when faced with an unprecedented challenge and a level of uncertainty not seen since the Twin Towers tragedy in 2001.

I’ve been involved in the industry for more than 15 years in a host of roles, most recently leading the growth of AS.G Group. Our vision in 2015 was to develop a highly specialist group, which could help a global customer base to consolidate their supply chains through innovation, efficiencies and excellent value for money.

This hasn’t changed because of Covid-19 - if anything the demand for our services will grow as aerospace reinvents itself to cope with the ‘new normal’. And this is the challenge for suppliers going forward. We have to be in a position to support the new aerospace development programmes, as they will come back on stream sooner rather than later.

There are also significant opportunities for SMEs to pitch for new packages of work in defence. All the signs suggest that spending in this field will continue at pace, as governments across the world look to stimulate and support industries feeling the commercial pinch.

We also need to explore which industries could benefit from the transfer of best practice manufacturing techniques and design agility we’ve cultivated in aerospace. This is something I feel very strongly about and, as a group of companies, we’ve already highlighted automotive electrification and medical as two sectors rich with opportunities.

Our latest acquisition - completed during Covid-19 - reflects this strategic approach. We wanted a company that would give us access to long-bed CNC machining capabilities and a direct footprint into supplying defence and medical contracts.

AMF Precision ticked all these boxes and we’re delighted to have it in our portfolio which also includes Arrowsmith Engineering, B&H Precision Tooling, Datum, Ludolph, Phoenix CNC Engineering and TGM.

My message is clear. Yes, times are tough and extremely challenging, but aerospace suppliers can be confident that opportunities will continue to exist as we emerge from the pandemic.

Greener air travel is going to happen, defence contracts are being increased and our expertise lends itself perfectly to sectors outside of the place we call home. A new-found desire for reshoring and closer supply chains will only increase this drive.

www.aeroservicesglobal.com