The results of the 2013 financial period have confirmed the positive expectations of the associate companies of the Aeronautics and Space Cluster Association HEGAN, with record figures in turnover, exports and employment. This favourable development can be seen within the context of the continued growth of air traffic and the large order books of aircraft manufacturers, as well as the diversification of products and markets, the participation of our companies in new aeronautics programmes and the adequate response of the entire value chain.

The good work and enthusiasm of HEGAN’s associate companies in 2013 allowed them to secure an increase in turnover of nearly 9%, to 1,720 million euros, while exports passed the 1000 million barrier for the first time. For the Association, it is especially satisfactory to be able to speak once again about the creation of jobs, at a time of great concern about high unemployment rates. In 2013, employment increased by 3% at all our companies’ work centres, reaching a figure of 12,418 direct jobs at the end of the financial period - almost 50,000 if we add the number of jobs created indirectly. Another major consideration is R&D, which reached 166 million euros. 2013 saw a number of important successes in the global aeronautics industry, such as the delivery of the first Airbus A400M and the launching of the Airbus A350XWB and the CSeries 100 of Bombardier, in which HEGAN’s associate companies have played an active part.

With regard to our partners, we would like to highlight the contracts won by Aernnova for the Embraer E2 regional aircraft and the 505 Jet Ranger of Bell Helicopters and the contract signed by ITP for the Low Pressure Turbine of the Trent XWB-97 and the Trent TEN, as well as the extension of their agreement with Pratt& Whitney for the PurePower® GearedTurbofan™ family. The Aciturri and Alestis groups continued their work as first tier suppliers of Airbus and Embraer, among others; SENER continued to play a leading role in the space sector and CTA and the Tecnalia and IK4 corporations maintained the same level of activity reached in previous years.

The non Tier1 industrial fabric, made up mainly by SMEs, continued to consolidate their position on the market, as shown by the significant growth in the percentage of exports over sales. These increased from 24% in 2012 to 33% in 2013 and their turnover in foreign sales reached 54.5 million euros. In this way, more and more foreign clients, such as Goodrich, LiebherrAerospace, Messier- Bugatti-Dowty, Snecma and Turbomeca, have placed their trust in this highly specialised group of companies, which will allow them to increase and diversify their activities.

To sum up, we can say that the aeronautics industry of the Basque Country has been able to take advantage of the demand in the sector and has been successful in its efforts to consolidate its position. Moreover, the exceptional results of the manufacturers of commercial aircraft in 2013, the number of orders for new aircraft and deliveries, and the 5% increase forecast for world air traffic, represent a good platform for the growth of HEGAN’s associate companies in the future.

As an association, we make every effort to meet the demands of the sector. In our strategic plan for the period up to 2016, we detected – among other key challenges in our attempts to provide our associates with added value - the need to strengthen the value chain. Several work groups have developed a presence in this area and for some this has led to promising projects for the future, such as the creation of an advanced manufacturing centre. Others are generating changes of attitude which, in time, will allow for new client-supplier relationships: long-term agreements, strategic alliances, temporary associations, new players, etc. In this way we will attain higher levels of competitiveness, with everyone’s commitment and the conviction that in this way we will make our best contribution possible to the future development of society.