- (22.4%) seen as key issues by participants at Abu Dhabi’s Global Aerospace Summit
Summit
survey shows:
- 69.8% believe their region’s infrastructure cannot meet future growth
- Third of participants believe their governments do not support their industries
- Middle East (36.4%) and China (30.4%) seen as experiencing most international growth over coming decade
12
April, 2014- Abu Dhabi, UAE:
New markets and workforce development have been highlighted as the
two key industry challenges by leaders in the aviation, aerospace,
defence and space sectors, met at Abu Dhabi’s Global Aerospace
Summit last week. Almost half of respondents (44.9 per cent) in a
survey of participants, more than 100, at the event believe
developing new products and new markets is their key challenge, with
more than a fifth (22.4 per cent) believing workforce and human
resource development is the primary issue.
Human
capital development was a core theme of the Summit’s agenda and the
survey showed clear concerns in this area. The two major issues are
talent retention (39.2 per cent) and recruitment of new graduates
with the correct skill set (35.3 per cent), with the ability to
source appropriate training and development for existing staff (23.5
per cent) following behind.
Homaid
Al Shemmari, Chief Executive Officer of Mubadala Aerospace and
Engineering Services,
said:
“Human
capital development is one of the key challenges facing our industry
today. That is true in developed markets, where other education and
career choices are winning out against our industries, and in
emerging markets, where education, training and on-job experience are
all issues.”
More
than two-thirds (69.8 per cent) of respondents believe that aviation
infrastructure in their regions is not capable of handling increased
capacity required to meet projected future demand. This figure,
coupled with the result that 35.2 per cent believe their industry’s
growth is not supported and promoted by national government, suggests
that the industry needs to demonstrate more clearly the economic
benefits it brings.
The
three regions predicted to witness the most international growth over
the coming decade are the Middle East (36.4 per cent of respondents),
Chine (30.9 per cent) and other Asia Pacific markets (16.4 per cent).
James
Hogan, Etihad Airways’ President and Chief Executive, added:
“Our
industries bring direct economic benefit through jobs and exports.
And they are also often ‘multiplier’ businesses which stimulate
far wider economic benefits through trade, tourism and associated
growth.
“In Abu
Dhabi, for example, Etihad Airway’s total economic contribution
into the local economy is expected to top $10.73 billion by 2015 –
an incredible impact from a business which has just celebrated its
10th anniversary.”
One
way in which Etihad Airways has grown is through widespread use of
codeshares, strategic partnerships and equity investments. Survey
respondents believe this is an approach which will be increasingly
adopted throughout the industry. 96.2 per cent believe the next two
years will see an increase in partnerships in the airline industry,
with two fifths (39.6 per cent) believing that increased formal
consolidation through changes in airline ownership will be most
likely and half (50.9 per cent) believing other forms of partnership,
excluding equity investment, will be the more likely path. Only 5.7
per cent believe in a resurgence of traditional alliances and just
3.8 per cent believe the industry will see a decrease in cooperation.
The
Global Aerospace Summit ran from 7-8 April 2014 at the St. Regis
Hotel, Saadiyat Island, Abu Dhabi. It focused on the challenges of
driving industrialization and growth across aviation, aerospace,
defence and space
The
wide ranging themes covered by the Summit included new events for
CEOs, dedicated, sector-specific strategy seminars, Defence Industry
Closed Door Briefings and a Military, Satellite and Communications
session. It brought industry experts together to answer the
challenges faced by the sectors and shape future growth strategies.
Leaders
from companies in both established and emerging markets shared their
experiences of supporting industrialization, improving supply chain
standards and creating value-added jobs for highly skilled
individuals.
The
second Global Aerospace Summit attracted well over 1,500 delegates
from 425 companies in 56 countries.
