The voice of German aerospace Supporting members

the voice of

GERMaN aERoSPaCE

BDLI, the German Aerospace Industries Association, is the foremost representative of companies within the country’s aerospace industry. As we shall see, it promotes the interests of its members through open dialogue with politicians, trade associations and authorities, and governments both domestically and abroad. It is also the trademark owner and co-organiser of the world-renowned ILA Berlin Air Show.

With more than 108,000 direct employees, the BDLI’s members generate an annual sales volume of €37.5 billion. Investment in innovation across all disciplines remains very high, amounting to some €4 billion (11 per cent of total industry sales). The industry performed very well in 2016, with sales growth for the entire industry at 8 per cent.

Today the Association has more than 230 companies under its umbrella, covering a wide range of disciplines within the aerospace sector, including: Aviation and Aerospace Systems; Engines; Equipment; and Material Science and Components. It works to support its members in a number of key ways. Firstly, it aims to stay abreast of the most important areas for technological growth. Representatives from members companies form the Steering Committee of the BDLI’s governing body, while more than 40 expert panels focus on a wide range of topics relevant to the industry, such as Industry 4.0 and 3D printing.

Furthermore, the Association lobbies the relevant trade and governmental bodies on issues that are important to its members. It belongs to Germany’s most important trade group, the Federation of German Industries (BDI), and at the European level it is also a member of the umbrella organisation ASD, the Aerospace and Defence Industries Association of Europe. BDLI serves on expert panels and committees and regularly takes part in hearings held by the German parliament.

According to the Association’s most recent report: “Germany and Europe are among the leaders in the global aerospace industry. Our industry is increasingly becoming a strategic factor for Germany as an industrial location: we invest heavily in research and development. When it comes to issues relevant to the future such as the factory of the future, our industry is playing a pioneering role – with spill-over effects in other industries.”

Civil, military and Space

Generally speaking, members can be divided into the three key pillars within the German Aerospace sector: Civil Aviation, Military Aviation and the Space Sector. Civil Aviation is still the largest single sector, with more than 75,000 employees and sales of €27.1 billion. According to the BDLI, “The increasing global demand for mobility and the replacement of older aircraft marked by high fuel consumption with the latest quieter, more fuel-efficient generation of aircraft continue to be the key engines for growth.”

With full order books and increased production rates, it is estimated that the order backlog for German aircraft manufacturers amounts to around 10 years of work. This is, of course, good news for engine manufacturers and other medium-sized suppliers.

The last few years had seen a decline in sales for the German Military Aviation sector, but 2016 has shown a turnaround with an increase in sales of 8 per cent and sales volumes rising to €7.5 billion. Futhermore, the number of employees has risen by 3 per cent to 23,800. The Association believes this is due in part to the changing security situation worldwide, which calls for greater investment in defence infrastructure.

The development and later procurement of the Future Combat Air System (FCAS), with its Nukleus Next Generation Weapon System (NGWS) as a joint European venture is a positive sign for military aviation manufacturers. According to the BDLI, “This system makes a lasting contribution to the preservation and expansion of industrial competence in Germany. It is also necessary to continue the work on the development project MALE UAS, together with France and Italy.”

In the future, the Association belives the development of further new programmes and the establishment of a military technology roadmap will be essential. The BDLI is ‘ready for a structured dialogue’ on this subject.

Compared to the previous year, 2016 sales in the German Space sector rose by 17.3 per cent to €2.9 billion, while its workforce grew by 5.7 per cent to 8900. And there are promising signs for the future too: in December 2016, some new resolutions were adopted by the ESA Ministerial Council, one of the most important of which was a strong emphasis on space applications and technology programmes. There was also an agreement to continue the international cooperation on the International Space Station up to 2024 – and as Germany is the leading space nation in the ESA this is great news for the BDLI members.

Air show success

The ILA Berlin Air Show, run by BDLI, is an opportunity for exhibitors to showcase their very latest technological achievements. The most recent edition of the show, which took place in June 2016, attracted 150,000 trade visitors and members of the public to the 250,000m2 Berlin ExpoCenter Airport. For the professionals there were 50 congresses and conferences, providing information about the latest developments in the industry including digitalisation, 3D printing, Industry 4.0 and eco-efficiency.

The brand-new Future Lab, located on the stand of the Federal Ministry of Economic Affairs, gave many exciting insights into the technological future of the aerospace industry. Another new feature for 2016 was the Startup Day, which enabled 50 newly established companies to present their creative ideas and business models.

Staying focused

From the above it is clear that the German aerospace sector is enjoying strong growth in a number of areas and this looks likely to go on as it continues to innovate and embrace the latest technological revolutions. However, this does not mean the Association and its members can afford to be complacent, as there are also a number of challenges to contend with – not least of which is the number of competitors from abroad.

“Given the growing competition worldwide, the first priority in the coming years will be to make the German aerospace industry competitive and thus secure its future. We will only achieve this goal if all stakeholders from industry, politics and research join forces. The federal government should step up its efforts to ensure fair competition worldwide. Regulations must be implemented globally to avoid disadvantages for Germany as a centre of business and industry.”

As with virtually all sectors today, an important area for future development within German aerospace manufacturing is the introduction of Industry 4.0 and digitisation in development, production and supply. “These investments in key technologies will also form the basis of our industry’s global market success in the future.” n