Spain gains ground

The presence of major international OEMs such as Airbus has driven the growth of Spain's aerospace industry and it now possesses some of the most highly developed and specialised aerospace production techniques in the world.

Representing the Basque region, HEGAN's aim is to develop a consolidated, competitive industrial network of aerospace members by establishing common policies that strengthen member companies as a group.

In 1997, it became the first aeronautics and space cluster association to be set-up in Spain and since then has been used as a platform through which the founding companies have provided the impetus for the creation of SMEs, leading to the development of a specialised network of aerospace sector suppliers.

HEGAN helped build a new sector virtually from scratch, creating wealth, employment and technological development in an area with a high level of complex and state-of-the-art industrial know-how and by doing so, has highlighted the industriousness of its key players.

Today, the turnover of company plants set up by the Basque aerospace industries throughout the world, stands at more than €1,150 million, whilst associate companies have created approximately 9,900 aerospace jobs in direct employment, of which almost 55% are still in the Basque autonomous community. The sector has grown almost five times larger in 10 years - proof of the success of this initiative.

“Since the creation of the HEGAN cluster association, we have done everything necessary to foster, promote and stimulate the development of an industrial, professional, and technological and research environment,” begins managing director, José Juez. “We seek to attain the highest levels of coordination and synergy among all the agents involved and secure international recognition for the Basque aerospace sector. In this way, we will help to strengthen the economy and aid the creation of specialised jobs, the scientific and technical development of society and direct industry towards activities that offer a better future and higher added value.”

Collaboration is the key

Juez feels that the key objective of a cluster association (CA) is to offer HEGAN's members a place where they can seek the collaboration of others in order to respond to the strategic challenges of the sector. With the aim of maintaining the competitiveness of the Basque aerospace industry in the short-, medium- and long-term, how important is it to be a member and what benefits will they stand to gain?

“In general, the experience of countries throughout the world shows that membership of a CA helps companies meet targets that they would not be capable of achieving alone,” he explains. “Many of the advantages of this membership are automatic, but others require the organisation and active efforts of participants as most members are direct competitors. It's necessary to seek a balance between competition and cooperation.”

Some of the advantages gained from being a member of HEGAN include vital information about the sector, help in determining the strengths, weaknesses, opportunities and threats (SWOTs) of each company, assistance for those wishing to secure a presence on international markets and improve their network relationships; participation in innovative improvements using a system of competitive intelligence and common image and marketing resources.

“The people taking part in our forums can develop faster at a professional and personal level,” Juez affirms. “It provides a more favourable learning environment in which know-how is exchanged on an informal basis. We can speak from a platform of confidence and from which projects designed to enhance and develop the competitiveness of industry by improving the skills of their people are generated in a spirit of collaboration.”

In terms of its active engagement in key aerospace programmes, Juez refers to the ‘multi-client, multi-product' concept as being one of HEGAN's key strengths: “The diversity of our members has enabled them to generate large order books. For this reason, we cannot speak of key programmes, as the technical know-how and capabilities of Basque companies allows them to work as suppliers - in many cases as risk and revenue sharing partners and/or consortia members of all the main companies in this sector, including many of the large OEMs.

“The vision of our members exemplified by their strategic choice of market segments, the careful selection of projects and partners and the search for long-term relationships, enables them to gain a presence in virtually all the main Western aircraft programmes.”

Juez explains that each area of activity and each of its companies have developed their own technological innovations and solutions, enabling them to gain access to specific, specialised areas such as aerostructures, engines, systems and equipment, including the space sector: “Metals and composites development of both manufacturing technologies and new materials research, innovating production solutions like Lean manufacturing, novel working systems such as communication hubs and extended business models, innovation in new fields like management, marketing, internationalisation, are just some of the areas in which our members are engaged with a view to developing an efficient, sector-based supply chain.”

Responding to the OEMs' demand signals for new and advanced technological innovations, Juez contends that a commitment to R&D in the short- and long-term is essential in order to maintain HEGAN members' place in the market.

“In 2009, investments made by HEGAN members in this area reached record levels of €162 million and 83% of the total amount has been financed by the companies themselves,” he confirms. “In the same year, the number of people engaged in R&D activities amounted to 2,097. Today, our companies are engaged in hundreds of R&D projects and in many cases have formed international consortiums or groups of associate companies in the search for solutions designed specifically for the market and therefore, OEMs.”

Although the Basque region is still relatively new compared to the aerospace sectors of other countries that have been working in this field, Juez reckons that the special capabilities that have allowed his sector to gain a foothold in the market are varied and unique in Spain.

“The companies that first endeavoured to gain a foothold in the aerospace sector quickly gained the capacity to supply OEMs with complete subsystems,” he concludes. “As a result of their pioneering work and response to the demand created at that time, the local suppliers' network was also successful in its endeavour to meet the requirements of this demanding sector, expanding its client base to include many national and international customers.

“I would say that this region has been especially successful in adapting its offer to market demands and to the required competitiveness levels. It has endeavoured to develop its own technology with extremely high ratios of R&D over sales and in its determination to lead other European regions in adapting its management systems and special processes in accordance with international standards.”

www.hegan.com

A centre for knowledge

Through its Centre for Advanced Aerospace Technologies (CATEC), the Andalusian Foundation for Aerospace Technology (FADA) promotes both public and private activities in the development of the Andalusian aerospace sector. Developed and managed by the Andalusian Foundation for Aerospace Development (FADA), the Centre for Advanced Aerospace Technologies (CATEC) supports aerospace sector R&D activities, providing companies with access to state-of-the-art technologies.

CATEC acts as an interface among science, technology and enterprise with the specific aim of answering R&D and innovation requests that may arise from over 130 companies connected with the aerospace industry network in Andalusia by transferring knowledge and technology in their corresponding application fields.

The creation, start-up and equipment installation of CATEC required an investment of €21 million, financed through collaboration between the Ministry of Innovation and Science and the Andalusian Ministry of Economy, Innovation and Science of the Junta de Andalucía. The President of the CATEC board of directors is Antonio Valverde Ramos, general director of the agency IDEA, whilst the CATEC general director is Juan Pedro Vela.

With 130 companies onboard as members, of whom more than 90% are concentrated in the Seville-Cadiz area, the Andalusian aerospace sector had a turnover of €1,541 million and created 1,231 new jobs in 2009, equalling growth of 8.8% and 16.3% respectively. Andalusia has increased its national weight in terms of turnover and was one of the Spanish regions that created an increase in sector employment during 2009 from 22.6 to 24.7% of the total of this industry at national level.

CATEC is part of Aerópolis, the Andalusian Aeronautics Technology Park and the only business and industrial entity exclusively dedicated to the aerospace sector, located close to Seville airport, Airbus Military and the final assembly line for the A400M.

www.catec.aero