Small companies making a big impact

8/14/2019 Small companies making a big impact

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Foreword:

SMEs have a role to play in European aeronautics

In the European aeronautics

sector, big players dominate,

but alongside the well-known

names are thousands of smal-

ler companies, often at the

cutting edge of innovation but

facing serious problems ac-

cessing and benefiting from

pan-European research pro-

grammes.

Micro, small and medium-sized enterprises (SMEs) play a central role in the

European economy. They are a major source of entrepreneurial skills, innovation and

employment. In the enlarged European Union of 27 countries, some 23 million SMEs

provide around 75 million jobs and represent 99% of all enterprises. However, SMEs

are often confronted with market imperfections. They frequently have difficulties

in obtaining capital or credit, particularly in the start-up phase. Their restricted

resources may also reduce access to new technologies. For all of these reasons,

targeted support for SMEs has become a major EU priority.

Carrying out aerospace research is widely recognised as a difficult and high-risk

endeavour, even for the sectors biggest players. The task is even greater for small

companies with only a fraction of the financial resources of the big spenders. The payoff

for such research often comes only after many years of effort and expenditure. Long

lead times, high costs and the preference of big companies to deal with tried and tested

suppliers, all tend to work against small companies and newcomers. The marked

consolidation within the sector is another factor that can squeeze out small firms.

Yet, in spite of all this, aeronautics SMEs are getting on with their work. This brochure

presents just a few of Europes shining examples SMEs providing real contributions

in the field of aeronautics. Make no mistake as key partners in major research

initiatives or as project leaders in their own rights, SMEs are helping Europe to define

its priorities and tackle its most pressing issues, leading the way to a new and better

air transport future.

Janez Potonik

EU Research Commissioner

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SMEs on the rise

According to European Commission Vice-President Gnter Verheugen, SMEs are, ...the

engine of the European economy, an essential source of jobs, create entrepreneurial spirit and

innovation in the EU and thus are crucial for fostering competitiveness and employment.

In the European aeronautics sector, where innovative technologies are especially

important, SMEs can indeed play a central role. However, such firms have limited

financial resources, and therefore their investment choices must be carefully

scrutinised and made in accordance with strict business plans.

Thanks to Commission support, there has been strong increase in SME participation in

industrial research and development over successive EU Research Framework Programmes.

Under the current Sixth Framework Programme (FP6), SMEs are contributing to European

aeronautics R&D initiatives both as partners and as full-fledged project leaders.

Keys to success

According to Kevin Corti of the European Federation of High-Tech SMEs, access to

larger firms is crucial to European SME success. Its about doing business, he says,

and doing business, for SMEs, means linking up and partnering with big companies.

The big companies, for their part, have to resist the temptation to keep going back to

the same SME partners over and over. It is certainly necessary but not necessarily

easy for big European firms to find and work with smaller partners. Doing so, he

says, is the only way to ensure that our European industries remain dynamic and at

the forefront of technological innovation.

What is an SME?

The category of micro, small and medium-sized enterprises (SMEs) includes

companies that employ fewer than 250 persons and that have an annual turnover

not exceeding 50 million euro, and/or an annual balance sheet total not exceeding

43 million euro.

(http://ec.europa.eu/enterprise/enterprise_policy/sme_definition/

sme_user_guide.pdf)

SMEs have helped develop fixed trailing edge secondary structures for Airbus.



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European Commission-

funded initiatives such

as AeroSME, ECARE and

SCRATCH have already pro-

vided a major positive impe-

tus, creating opportunities

for SMEs and larger firms

to link up and move forward

with important research

actions (see page 7).

Enlargement a positive step

Identification of high-potential SMEs in the New European Member States is now a

major priority and a major opportunity for European research. Franois Quentin of

Thales has said, We are constantly looking for new ways of including more players

who can contribute to increasing efficiency and innovation. The SMEs just as New

European Member States are very relevant in this sense, with a lot to offer and still

many unidentified potential partners out there. Quentin is currently serving as

Co-Chairman of ACARE, the highly influential European Technology Platform for

aeronautics research.

Meanwhile, Axel Krein, Airbus Senior Vice-President for Strategic Developments has

commented on his companys ongoing collaboration with Eastern European players,

including Russia and the New Member States, saying, We now have considerable

experience in partnerships with their excellent research institutes, but we can do a lot

more in terms of identifying and working with their SMEs.

Technician riveting part of the pressure bulkhead of an Airbus aircraft. Photographed at Deutsche Aerospace(DASA), Bavaria, Germany.

Kevin Corti (left) stresses business sense for high-tech SMEs.



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SMEs in FP7

Some 400 SMEs are already participating in FP6 aeronautics research projects.

Under the final FP6 call for proposals, SME garnered almost 12% of EC funding.

In a December 2006 decision(1), the EU Competitiveness Council urged the European

Commission and Member States to ensure that small companies can benefit from the

Seventh Framework Programme for Research and Technological Development (FP7)

and the Competitiveness and Innovation Programme (CIP).

The European Parliament

and the Council reaffirmed

the importance of SMEs

for Europes economy and

stressed that particular

attention should be paid to

the adequate participation

of SMEs, in particular

knowledg e- intens ive

SMEs in transnational

co-operation.

The decision also called for the reintroduction of the 15% threshold for SME

participation in co-operative research programmes, sending what many believe to be

the right message to small firms.

To stimulate SME participation, the Commission has now raised the funding rate for

SMEs from 50% under FP6 to 75% under FP7.

For an overview of funding opportunities available to European SMEs, consult the

following internet page:

europa.eu.int/comm/enterprise/entrepreneurship/sme_envoy/index.htm

FP7 responds in the affi rmative

Liam Breslin, the European Commissions Head of Aeronautics Research, has

remarked that, under the Framework Programmes, the Union has already committed

itself to increase SME participation in aeronautics.

The effect of this commitment, he says, is demonstrated by the steady increase in

participation of SMEs since the Fifth Framework Programme; while the number of

participating SMEs was 40 for the first call of FP5, it reached 150 for the last call of

FP6. Over the same period, the budget share for SMEs increased from 4.8% to 9.8%.

SME participation in EU-funded research takes two forms:

As key partners in major industrial research initiatives;

As project leaders in their own rights.

1 Decision n 1982/2006/EC of the European Parliament and of the Council of 18 December 2006

SME participation in aeronautics(Retained proposals before negotiation)

The SMEs participation has doubled in FP6 compared to FP5

This doubling results from:

the actions undertaken by the Commission to promote SMEs participation

and the increasing support from the big industry players (IMG4)



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Under FP7 (2007-2013), says Liam

Breslin, EU commitment to SMEs

will only increase. The Union

will continue to work towards

more SME involvement in critical

research initiatives, FP7 will

seek to stimulate the ongoing

restructuring of the aeronautics

industry, including the integration

of the supply chain and, in

particular, SMEs.

Call for proposals

The total EC grant available for collaborative research in aeronautics over FP7 (2007-

2013) is on the order of1 billion. This opens a vast number of opportunities for SMEs.

The first FP7 call for proposals was issued on 22 December 2006. Research in the

field of aeronautics is addressing greening, time efficiency, customer satisfaction

and safety, cost efficiency, protection of aircraft and passengers, and pioneering airtransport systems of the future.

Topics for Level 1 projects, i.e. projects oriented towards upstream research with an EC grant

typically below8 million, include production, maintenance and repair, design systems and

tools, systems and equipments, flight physics, aero structures, propulsion and avionics.

Level 2 projects, also open to SME participation, involve development to a higher

technological readiness and with a high level of integration. Here, EC grants typically

range between 8 million and60 million. Topics will vary from one call to another.

Additional opportunities should be available under the Clean Sky Joint Technology

Initiative (JTI), which has set aside 12% of the EC contribution for SMEs.

How to Participate

For up-to-date information on calls, participation rules, guidelines for proposals, etc.

see the Cordis website:

http://cordis.europa.eu

How to get involved in Aeronautics research

Stay informed about running projects that are of interest to you:http://ec.europa.eu/research/transport/transport_modes/aeronautics_en.html

Find out if a continuation of a project is planned

Explain to coordinators what you can bring to their project

Be ready to act

Critical opportunities: how FP7 can help

SMEs deliver state-of-the-art CFD methods.

E

UROLIFT

II



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SMEs Getting in the game

AROSATEC improving turbine engine maintenance

The EU-funded AROSATEC project (Automated Repair and OverhaulSystem for Aero Turbine Engine Components), composed largely ofSMEs, has developed new processes for the automated repair andoverhaul of aeroengine blades, discs and blisks (bladed discs).

Today, maintenance, repair and overhaul (MRO) of aero engine components involves

a chain of processes, including inspection, de-coating/coating, welding, milling and

polishing. Most of these processes are still carried out manually, and while the supply

industry is developing improved and automated machining equipment, the individual

steps remain separate and unconnected.

Improving and integrating

Our first objective was to improve existing repair methods for aero-engine

components, explains Thomas Kosche of BCT GmbH. This was to be achieved through

adaptive machining technologies to compensate for part-to-part variation in complex

turbine components.

The second goal, he says, was to develop a new data management system which

would constitute the core of a fully automated overhaul process, integrating individual

steps into a comprehensive automated repair chain.

To achieve its objectives, AROSATEC coordinator BCT GmbH enlisted several

international SME partners, including BCT GmbH itself.

Targeting key technologies

Research on scanning technologies was one of the main focuses of the project.

Reliable scanning results for engine components serve as the basis for inspection

and for subsequent adaptive laser welding and milling processes. Kosche says the

AROSATEC project improved optical scanning methods so that even shiny materials

can now be assessed easily and automatically.

The integration of systems was another important issue addressed by the project.

All of the new processes are equipped with interfaces for communicating with a

database, explains Kosche.

Demonstrated success

The final AROSATEC meeting took place in Leuven in 2006. BCT GmbH PresidentClaus Bremer says, Our company has generated two business collaborations with

two AROSATEC partners, we are now planning a new proposal for FP7 and we may

join a larger project. In summary, AROSATEC is a big success for our company.

AROSATEC

Seven partners Coordinator: BCT GmbH

(www.bct-online.de)

Duration: 33 months

Total Cost:

2.3 million EU funding: 1.1 million

www.arosatec.com



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Participating in EU Collaborative Research Project is a challenge, says Rmy Dnos,

Project Officer in charge of SMEs at DG RTDs Aeronautics unit. If we want to promote the

participation of SMEs, we need to provide them with specific support. With this in mind,

we are funding several complementary support actions to tackle different issues.

Specific information for SMEs, including latest information events and workshops can

be found at the AEROSME Helpdesk ( http://www.aerosme.com).

ECARE can help SMEs to establish contacts at regional level, including liaison with

nearest regional associations.

Coordinators looking for qualified SMEs to participate in collaborative projects can

contact AEROSME for Level 1 projects or ECARE for Level 2 projects.

The SCRATCH consortium is providing free support to potential participants looking to

set up projects with an SME dimension under future calls for proposals. This includes

developing a partnership, calculating costs and durations that an SME or SMEs can

reasonably handle. Note that the AROSATEC and LIGHTNING projects described in

this booklet were incubated by SCRATCH.

Finally, the Don Q Air project is now providing specific support to a small group of

countries where R&D investment in aeronautics is particularly low Poland, Romania

and Turkey.

AeroSME

Informing SMEs about Possibilities

Coordinators of small Collaborative Projects can find SMEs here

http://www.aerosme.com

ECAREClustering Aeronautics Regions

Coordinators of large collaborative projects can find SMEs here

http://www.ecare-sme.org/plus

SCRATCH

Setting-up collaborative research projects led by SMEs

http://www.aero-scratch.net

Don Q Air

Promoting SMEs from Poland, Romania and Turkey

contact: [email protected]

Helping SMEs participate in EU research



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More project success

Tenacious SME forges ahead

Our major difficulty has been getting people to invest in our business, says Angus

Flemming of the UKs Aviation Enterprises Ltd. Todays investors want a quick return,

to double or triple their money in a year. Basically, theyre out of touch with reality.

Aviation Enterprises is a specialist design, development and manufacturing

organisation specialising in the light aviation industry and the application of lightweight

and high performance composite materials. The company is now playing a critical

role as coordinator of the EU-funded LIGHTNING project (Lightning protection for

structures and systems on aircraft utilising lightweight composites).

The European Aviation Industry has been quick to use lightweight composite materials,

especially carbon fibre, for primary structures and flight control surfaces, explains

Flemming. Composites are lightweight, stiff, and provide smooth, aerodynamically

efficient surfaces. Carbon fibre is particularly attractive because it has good corrosion

and fatigue properties. This results in enhanced efficiency and performance and a

significant weight reduction.

Developing lightning protection for small aircraft

However, lightning protection is difficult to incorporate into a composite aircraftcompared to conventional aluminium ones. Composite airframes also provide less

electromagnetic shielding compared to aluminium, making it more difficult to protect

avionic systems. Both of these problems are exacerbated in light aircraft by their

small size and low weight.

The LIGHTNING project is addressing the need to optimise lightning protection systems

for aircraft with lightweight composite structures. It will allow manufacturers to make

safe use of the performance advantage provided by such materials, says Flemming.

This kind of work requires time, foresight, and a huge amount of effort and, of course, long-

term funding. Although we came up with the idea for the LIGHTNING project, as a small

company we could not have carried out the work on our own. We identified potential partners

like Airbus Spain and Diamond Aircraft Industries in Austria and were able to convince them

to help us, but it wasnt easy. As an SME, you need to be bold, you need to have a clearmessage, and, in some cases, you need luck on your side. But you can succeed.

Flemming says the LIGHTNING project aims to reduce by 50% the current 1.5% to

2.5% weight penalty for adding lightning protection to an empty aircraft.

For more information:

LIGHTNING project:

http://ec.europa.eu/research/transport/projects/article_3703_en.html

Aviation Enterprises: www.aviationenterprises.co.uk/avent/

Unconventional composite aircraft need special lightening protection systems.

St

ock.Xchng



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Large Collaborative Projects are

among the main EU instruments for

co-operative industrial R&D. They are

aimed at addressing major societal

needs by mobilising a critical mass of

research and technological develop-

ment resources and competences. With

clearly defined strategic research ob-

jectives they focus on obtaining specific

applicable results.

SMEs can play an important role in large

Collaborative research Projects bringing

specialised skills and knowledge, new

blood and new ideas. What it really

comes down to is individuals, says

Martin Worsfold of Smiths Aerospace.

Whether youre big or small, if your

people have something to contribute,

then youre worth bringing on board.

Smiths Aerospace is a leading global provider of technologies and systems to builders

and operators of military and civil aircraft and engines and is coordinator of the EU

funded TATEM project.

New vision

TATEM (Technologies and techniques for new maintenance concepts) is developing

and validating philosophies, technologies and techniques that can turn unscheduled

aircraft maintenance into scheduled maintenance, aiming to deliver a 20% reduction

in airline operating costs within ten years and a 50% reduction over 20 years.

The TATEM project includes quite a number of SMEs, all contributing to the project

and some of which are really quite outstanding, says Worsfold. I would cite Oration

S.A. as just one example.

Oration is an Athens-based SME providing speech-enabled interactive voice response

(IVR) applications that allow the automation of contact centre functions. The company

offers solutions to a wide range of vertical markets, from voice banking to retail and

healthcare speech applications.

Although they dont have a lot of experience in the aeronautics sector per se, Oration

and other small groups like it have been a valuable asset to our project, says

Worsfold. In a way, our project is quite basic in nature; we are looking for new ideas

and solutions and SMEs such as Oration can sometimes find new and fresh ways to

look at things.

Another important aspect of this this kind of large project is the way it brings together

partners from all corners of Europe. It forces us to learn and expand, both in technical

terms but also in cultural terms.

For more information:

Smiths Aerospace: www.smiths-aerospace.com/

TATEM project: www.tatemproject.com/

Oration S.A.: www.oration.gr/

SMEs broadening horizons

SMEs bring specialised people with specialised skills.

J

amesKing-Holmes/Sciencephotolibrary



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How to Participate

Calls for proposals in aeronautics are published on

http://cordis.europa.eu/fp7

under Find a call, FP7-AAT (AAT: Aeronautics and Air Transport)

Contact:

L. Breslin

R. Dnos

Directorate-General for Research

Directorate H: Transport

Unit H3: Aeronautics

1049 BrusselsTel: +32 2 298 64 81

KI-77-07-147-EN-C


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Small companies making a big impact