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Boeing and the Regional Government Department of Economy and Knowledge, through Extenda, Andalusia’s export support agency, inaugurated the first Boeing Spanish supplier event, lasting two days, with the participation of close to 20 companies from the Andalusian aerospace cluster that are part of the commercial mission to Canada and the U.S. organized by Extenda, including the three Spanish Tier 1 aerostructure suppliers: Alestis, Aernnova and Aciturri.
Sheila Remes, vice-president of strategy, Boeing Commercial Airplanes; Vanessa Bernad, CEO of Extenda; and Elisa García, Commercial Attaché at the Embassy of Spain in the United States, inaugurated the conference. During the event, the Andalusian companies learned about Boeing’s procurement processes and supply chain dynamics from Bob Noble, vice-president of Boeing Supply Chain Strategy.
The three Spanish Tier 1 aerostructure suppliers, Alestis, Aernnova and Aciturri, which have a presence in Andalusia, participated in a roundtable discussion with Boeing and Extenda, under the title “Building Competitive Strength,” during which these Boeing partners narrated their experience with supply chain operations, evidencing the high level of the projects undertaken by Andalusian and Spanish industry.
Arturo de Vicente, CEO of Cluster Hélice, presented the capabilities of the Andalusian aerospace cluster, particularly its ancillary industries.
In addition to these three companies and Cluster Hélice, another 10 Seville-based companies participated in the trade mission: Elimco Aerospace; Elimco UAS; Potez Aeronáutica Ibérica; Sofitec composites; Inespasa; Canagrosa; Atis Ibérica; UMI Aeronáutica; Solar Mems Technologies; Airgrup; Consur; and Cesa. Four Cadiz-based companies – Carbures Aerospace & Defense, Mave Aeronáutica, Saes, and Titania – and Malaga-based Mades also participated.
Up to 34 companies from the Andalusian cluster are participating in a range of Boeing projects relating to the 737, 747, 777 and 787 programs that generate €51.7 million (approx. C$76 million) in annual revenues.
The seminar also hosted dozens of B2B meetings between executives of the Andalusian companies and Boeing senior personnel to analyze the scope for participation in Boeing programs.
This direct trade mission, initiated March 23 in Canada, with the presence of the Regional Minister of Economy and Knowledge, Antonio Ramírez de Arellano, and that ends on March 29, is organized by Extenda, is 80 per cent co-funded by the European Regional Development Fund through the Andalusia ERDF 2014-20 Operational Program.
A strategic encounter
Vanessa Bernad, CEO of Extenda, described this first Boeing Spanish Supplier event as a unique opportunity for Boeing to get to know the Andalusian aviation industry’s capacities first-hand. “This event, organized by Extenda and Boeing, with the collaboration of the Embassy of Spain in the United States, aims to increase and diversify international activities by Andalusian companies, taking them to where the opportunities are.”
“This commercial mission arose out of Boeing’s participation in the aerospace and defense meetings in Seville (2014 to 2016), where Boeing executives gained insight into the capabilities and projects in Andalusia, Europe’s third-largest aerospace cluster. The end result is this first encounter here in Seattle which, we hope, will build closer links between the Andalusian cluster and Boeing,” said Bernad.
“Partnering with local suppliers is key to the success of our company’s business, and what we do in Spain is a great example of how quality and focus lead to effective results,” said Antonio De Palmas, managing director, Boeing Southern Europe. “This supply chain event is a landmark that will help to strengthen and develop further our relationship with Spanish suppliers and our long-standing presence in the country.”
“In 2017, we plan to increase the 737 production rate from 42 to 47 a month and that figure will increase to 52 a month in 2018,” said Sheila Remes, vice-president of strategy, Boeing Commercial Airplanes. “This type of challenge calls for a highly agile supply chain. Spanish suppliers make a tremendous contribution to Boeing airplane programs and we look forward to continuing this valuable partnership.”
Boeing is the world’s leading aerospace company, having delivered 748 commercial airplanes in 2016, and reported US$96.114 billion in revenues in 2016, with a backlog worth US$489 billion; the company is also the largest exporter in the U.S.
Exports to the U.S. doubled
Andalusian aeronautical exports to the U.S. more than doubled (+114 per cent) in 2016 compared to 2015, to €42 million. That was double the growth experienced by Spanish exports to the U.S. in 2016 (+56 per cent).
The U.S. is the eighth-largest international market for the Andalusian aeronautical industry, representing three per cent of the region’s exports, but with strong growth and diversification potential. Imports also grew in 2016 (+4.4 per cent) to €697 million, which means that Andalusia buys 16 times more from the U.S. than it sells. However, the coverage rate improved by 3.1 points compared to 2015, reducing the deficit by one per cent. Spain’s national aeronautical trade balance with the U.S. is also favourable to the latter, in the amount of 1,564 million.
The number of Andalusian companies exporting to the U.S. amounted to 27 in 2016. Nine of them are regular exporters (four consecutive years of exports) and represent 98 per cent of sales to the U.S.
By province, Seville accounted for 94 per cent of exports in 2016, having increased by 135 per cent with respect to 2015 to 39 million. The other six per cent is divided among Cordoba, which quadrupled its exports to 2.4 million; and Malaga, with €600,000.
The top three aeronautical products exported to the U.S. in 2016 were: airplane or helicopter parts, representing 85 per cent of sales, i.e. €35 million, triple the 2015 figure (+238 per cent); landing gear and parts, amounting to 1.8 million; and helicopters weighing over 2.2 tons, amounting to 1.7 million.
