The Andalusian aerospace cluster keeps growing

The Andalusian aerospace industry had a turnover of €2,060 million in 2013 and created nearly 400 new jobs with a total of 11,685 employees, according to the Annual Report 2013 of the Andalusian Aerospace Industry carried out by Hélice Cluster and presented by the Regional Minister of Economy, Innovation, Science and Employment, José Sánchez Maldonado. This data strengthens the fact that for another year, aerospace is a strong and consolidated industry and a strategic activity generating wealth and employment and fortifying the productive network within the community. The industry is keeping and increasing positive numbers despite the complicated and adverse international economic situation so data consolidates Andalusia's position as the second main region nationally and as one of the European three leading centres, together with Toulouse and Hamburg. According to the Andalusian aerospace data, the industry contributes already 1.49% to the Andalusian GDP and 19% to the manufacturing industrial GDP within the community. Significantly, the aerospace cluster increased sales by 10.9% (€201.7 million) and employment by 3.5% (395 employees), exceeding one thousand and half new jobs in the last three years.  The report gathers the solid development of Andalusian aerospace in the last decade, when sales volume has multiplied by 3.2 (from €645 million in 2004 to over €2,060 million in 2013) and employment has multiplied by 2.6 (from 4,516 in 2004 to some over 11,685 in 2013). In the course of these ten years, turnover grew upwards of €1,414 million and 7,169 new jobs were created. The industry expects this positive evolution to keep being on the rise in the next few years as it occurred already in 2013 thanks to the production rate increase, mainly due to A400M serial production. The report reveals international sales as a key issue, reaching €1,509 million in 2013, 44% more than in 2012, when exports grew already by 6%. This figure means 73% of total turnover within the sector. Aerospace emerges as a main source of export revenues, nearly surpassing olive oil, the region's traditional major foreign exchange, reaching €1,519 million in 2013, 6.3% more compared to 2012. In addition, the report highlights the leading position of Andalusian aerospace in terms of quality standards and productive capacity of its companies. The region's critical mass comprises 115 firms that are growing and increasing productivity and capacity to participate in international programmes and lucrative work packages. The industry recorded improvement regarding productivity, growing by 7% compared to 2012 when the sector also grew by 10% compared to 2011. A growing sector In addition to quantitative concerns, qualitative aspects excel at confirming the Andalusian sector as a solid and diversified industry as to clients and products. With regards to sales, 52% of business corresponds to military programmes while civil programmes represent 48%. As to business activities, the report reveals a trend change in the engineering activity due to the lack of new programmes, after several growing years. “Design cycle gets close so production is taking over in terms of growth with an increase of 16 and 13%”, says the report, so it shows final assembly companies grew by 16.2% (€564 million of turnover in 2013), while companies devoted to sub-assemblies grew by 13.6% (€841 million). These two groups represent 68% of the total aerospace turnover. The report states the increment as to employment (395 net jobs) despite the 300 job lost caused by the Alestis Aerospace Restructuring Plan. Alestis is an Andalusian tier one supplier and one of the three existing in Spain. All in all, the Andalusian Aerospace industry experienced employment growth of 3.5% compared to 2012, so it employs nearly 12,000 people (11,685), 6% within all the Andalusian manufacturing industrial employment. In addition, the number of highly skilled employees were on the rise last year (managers, engineers and graduates), with a growth rate of 1.3% compared to 2012. This area together with qualified operators represents 90% of the Andalusian global sector. OEMs and service companies The analysis on the Andalusian Aerospace industry also reflects data to take into account in terms of OEMs and service companies. Hence OEMs played again a leading role for the sector's growth rate thanks to Airbus Defence and Space ramping up A400M production, already mentioned. Airbus DS's sales grew by 17.5% in 2013 (€167 million), reaching €1,125 million, while Airbus sales stayed at a stable level. Global figure for OEM's growth rate was of 30%. On the other hand, employment rate within Airbus DS's grew by 7.46% (179 new jobs), and productivity improved (turnover by employee) by 9.3%, so global productivity rate rose by 8.2%. In the last decade, the trend is to increase productivity at a pace of €20,800 per year/per employee. As to the service industry, data were favourable again in 2013 as it's been happening in the last few years, despite the negative impact of the Alestis Restructuration Plan. Employment rate grew by 2.6% among service companies (216 more employees compared to 2012), up to reach a global amount of 8,612 jobs. In this context, production areas registered an increase of the number of employees (12%), quality (14.46%) and logistics (19.75%). By its side, the service network increased turnover by 4.7%, reaching €771.3 million, involving an increment of 6 and 11% within production companies: assembly (+10.6%); composites and services (+8%); and machining and testing (+5.6%). Airbus products involved 59% of sales with an increment of €34 million. In addition, during 2013, the service industry improved global productivity and reached €91,000 per employee, 3.4% increase compared to 2012. With regards to R&D investment, service companies involved €37.2 million in 2013, in comparison to €56.9 million in 2012, due to the conclusion of the ERDF-Innterconecta projects, devoted to provide financial backing for R&D within the sector in previous years.

From left to right: Simón Vazquez, Hélice cluster manager; Arturo de Vicente, Hélice's director; José Antonio Sánchez Maldonado, regional minister of Economy, Innovation, Science and Employment and Antonio Valverde, IDEA Agency's general director. www.helicecluster.com