# Presentation: 709187

## Stephan Wasylko
Senior Commercial Officer
U.S. Embassy London

**Stephan Wasylko**
**Senior Commercial Officer**
**U.S. Embassy London**

## UK Aerospace Market

- The 2nd largest in the world, after the U.S.
- $45.3 bn turnover in 2005 (up 25% on ‘04)
- BAE Systems, Rolls-Royce, Cobham
- Defense represents 54% of revenues
- Employs 124,000 people in UK
- Est. 67% of sales export-related
- EU and U.S. are primary customers

## UK Defense Market

- The world’s second largest
- Represents 5% of the worldwide market
- $80bn Ministry of Defence spend FY05/06
- FY05/06: 26,000 contracts worth $36.4 billion
- Defence Equipment & Support (DE&S)
- Around 25% of defense industrial base is foreign-owned

## Major UK Programs

- F35 Joint Strike Fighter
- Astute-class Submarine
- Type 45 Destroyer
- Future Lynx Helicopter
- Future Strategic Tanker Aircraft
- Future Aircraft Carrier (CV(F))

## U.S. Civil Aerospace Exports 

**U.S. Civil Aerospace Exports **
**to the United Kingdom (2004-2006)**
**($ Million)**

- United States International Trade Commission (USITC)

## U.S. Military-Related Merchandise Exports 

**U.S. Military-Related Merchandise Exports **
**to the United Kingdom (2004-2006)**
**($ Million)**

- United States International Trade Commission (USITC)

## U.S. Companies in the UK

**U.S. Companies in the UK**

## Mergers & Acquisitions 2006-7

- GE
- Acquired Smiths Aerospace for $4.8bn
- Spirit AeroStructures
- BAE Systems Regional Aircraft aerostructures business sold to Spirit AeroSystems for $160 million
- Esterline
- bought Wallop Defence Systems for $59 million

## Best Prospects

- Engine technology
- Composites and specialist materials
- Maintenance, repair & overhaul (MRO)
- Simulation & synthetic environments
- Border security, especially airports
- CBRN detection and protection

## Our Programs in 2007-8

- Defence Systems & Equipment International
- London, September 11-14, 2007
- U.S. Pavilion by AUSA
- International Security, National Resilience
- London, December 4-5, 2007
- Formerly ‘Airport, Port & Transportation Security’
- Farnborough International Airshow
- Farnborough, July 14-20, 2008
- U.S. Pavilion by Kallman Worldwide

## Key Considerations

- UK Defence Industrial Strategy (DIS)
- National Aerospace Technology Strategy (NATS)
- Sustainable Aviation Strategy
- EU Emissions Trading Scheme
- U.S.-EU Open Skies Agreement

## Market Entry

- Channels
- Agreements and contracts
- Trade promotion and advertising
- Pricing: CIF + Duty + VAT
- Sales service and customer support
- Intellectual property (IP) protection
- Regulatory issues
- Due diligence; professional services

## Compliance

- EU regulations:
- EASA
- WEEE, REACH, and RoHS
- CE marking
- U.S. export controls:
- Export Administration Regulations (EAR)
- ITAR
- 3rd country sales by UK subsidiaries

## Resources

- U.S. Commercial Service
- Office of Defense Cooperation
- Defence Manufacturers Association
- Society of British Aerospace Companies
- Regional bodies:
- Aerospace Wales
- West of England Aerospace Forum
- Midlands Aerospace Alliance
- Northern Defence
- Farnborough Aerospace Consortium

## Contact Us

- U.S. Embassy
- 24 Grosvenor Square
- London W1A 1AE
- United Kingdom

**U.S. Commercial Service**
- Tel.     011 44 (0) 20 7894 0419
- Fax     011 44 (0) 20 7894 0020
- London.Office.Box@mail.doc.gov
**Office of Defense Cooperation**
- Tel.     011 44 (0) 20 7894 0737
- Fax     011 44 (0) 20 7894 0730
- odclondon@state.gov