With an increase in turnover of virtually 2% over the previous year, once again, the associate companies of the HEGAN Aerospace Cluster have announced favourable results for the 2014 financial year, reaching a turnover of 1755 million euros. Jobs, in turn, increased by 1% to 12,546.

In those work centres located in the Basque Country, employment grew by 4.4% to 4,278 and turnover increased by 8.74%. The main financial markers for the sector, which have continued to increase even during these years of crisis, have shown an upward trend since 2007, with an average increase for this period of 7.7% in turnover and 7.4% in jobs. For the second consecutive year, total exports passed the 1000 million euro mark, reaching a figure of 1,139 million euros, 65%  of their total turnover. The United Kingdom continued to be the main importer, followed by Germany and the United States. Being largely dependent on the development stage of the programmes in which the Cluster’s associates are taking part, R&D investment has held its own with regard to previous year, reaching 165 million euros and representing 9.4% of turnover. The major self-financing efforts of its companies reached 86% of the total investment, dedicating 11% of their total staff to R&D activities.

Sector milestones in 2014

Among the major events that occurred during the financial period and that will affect industry in the Basque Country over the coming years, we might mention the roll-out of the tactical transport aircraft the Embraer KC-390, a new niche for the Brasilean manufacturer. “This year will see the start of production of this programme with the participation of eight HEGAN associates, allowing our companies to diversify their clients and the markets in which they are taking part”. Without doubt, the star event for our association was the delivery of the first wide fuselage aircraft, the A350 XWB, destined to become the main player in Airbus’s  commercial aviation business over the next decades. Airbus initiated the production start-up phase at the end of 2014, with the participation of 33 HEGAN associates – including Tier1 Aciturri, Aernnova, Alestis, and ITP in engines, as well as the contribution of engineering, services and several components. Likewise, some twenty associate companies of HEGAN will continue to take part in the Boeing 787 Dreamliner too, the production rate of which will increase gradually (from current 10 aircraft) to 12 aircraft per month in 2016 and 14 by the end of the decade. In the regional aviation segment, the launch of Bombardier’s CSeries is being prepared and Aernnova is developing the engineering for the fuselage and the stabilisers for Embraer’s new E-2s.

On the other hand, the sector continues to strrengthen and diversify its position with its particiation in new business aviation programmes. In addition to Aernnova’s contribution to the Beechcraft model, ITP signed an agreement as a risk and profit partner in the PurePower® PW800 engines of Pratt & Whitney Canada, which will equip the new Gulfstream G500 and G600 aircraft. Special mention should be made of the value chains of each and every one of these programmes, made up of many of the remaining members of the Cluster, who contribute advanced products and services that ensure the competitiveness and presence of our associate companies on the market. Finally, 2014 saw the presentation of the ambitious Advanced Aeronautics Manufacturing Centre project (in Spanish: Centro de Fabricación Avanzada – CFA), to be launched this year with the participation of 14 organisations including AFM members and the HEGAN associates: Danobatgroup, Grupo Alfa, ITP, Mesima, Metrología Sariki, the University of the Basque Country and WEC.

Future prospects

The growth forecasts of airlines and manufactures provide an appropriate scenario for an increase in turnover of HEGAN’s associate companies, which may reach 5% this year and a lower increase or stabilisation of job figures. “The strong position enjoyed by HEGAN’s associate companies in the sector and their participation in new programmes ensure their growth in the mid term”. The sector aims to continue improving its competitiveness to ensure the long-term position of its companies. The main challenges include the ever-increasing technological demands of the sector, spurred on by huge demands in the development of R&D&I and increasing competition from new countries offering products to the sector with the purchasing power of their governments and companies (China, India, Arab Emirates, etc.). “As a result, it is necessary to continue the leadership of Tier-1 companies in technology and innovation and develop the value chain, so that all agents contribute value at a local and international level. The sector also needs extraordinary financial means in order to be able to launch new programmes”.

HEGAN

The HEGAN Cluster Association is made up of 46 entities: Aernnova, ITP and SENER as founding members; the companies and business groups Aciturri, Aeromec, Aerospace Engineering Group, Aibe, Alestis, Alfa Precision Casting, Altran, Aratz, Astorkia, Ayzar, Batz, Bost, Burdinberri, Burulan, Danobat Group, DMP, DYFA, Electrohilo, EYHER, Grupo TTT, Industrias Galindo, Korta Group, Grupo LTK, Matrici, Mesima, Metraltec, Metrología Sariki, Nivac, Novalti, Nuter, Orbital Aerospace Systems, Siegel, Sisteplant, Tecnasa, Tey and WEC; and the technological organisations CTA, IK4 and Tecnalia and the Universities of Deusto, Mondragón, Basque Country and Tecnun.