Sponsored by Clarion Events
12 Jul 22. McKinsey & Company to highlight decarbonization, A&D talent imperative, future air mobility funding and satellite internet ownership at Farnborough International Airshow.
At the biennial Farnborough International Airshow, McKinsey & Company will share its perspective on four of the aerospace and defense industry’s most promising opportunities and pressing challenges. Executives from the firm will release four reports during the airshow and share their analysis from the following with the media and other attendees:
- July 18: Aerospace decarbonization – In aviation, fuel-related emissions generate the vast majority of climate impact. But aerospace players also need to improve sustainability in manufacturing, assembly and maintenance of their products. Five areas are highlighted:
– Decarbonize one’s own operations. Aircraft manufacturers, suppliers and maintenance providers must include their direct scope 1 and 2 emissions in decarbonization efforts.
– Secure access to low-carbon materials. Materials and their supply chain are an important emissions source and are part of the industry’s emissions as scope 3.1 (purchased goods and services) and scope 3.4 (upstream transportation).
– Expand decarbonization efforts along the supply chain. Supply-chain management must change to incorporate sustainability issues, such as quantifying and documenting the carbon intensity of every part over its lifespan.
– Build decarbonization into design. This might involve choosing specifications that reduce a product’s environmental impact or creating designs that enable better reuse or recycling at the end of life.
– Build capabilities at all levels. In operations, awareness around decarbonization needs to be built, similar to what has been done for safety. Players need to build organization-wide sustainability capabilities at every level, from CEOs to store clerks.
- July 18: Aerospace and defense talent imperative – This report highlights the challenge of transitioning from a hardware-centric industry to a software one. At a time when there are 50,000 unfilled positions globally and technology talent outflows are twice as large as inflows, the report identifies four principles to follow:
– Rethink the employee value proposition: A&D resignations are up to six percent above average. Increasingly younger talent highly value purpose, flexibility, collaboration and inclusion; technology talent embraces these expectations.
– Take a tailored approach: More agile ways of working that break the traditional hierarchy can feel foreign for legacy hardware players whose culture is mission driven. Also, technology talent is significantly more expensive, yet A&D pays entry-level software engineers two times less than top technology companies.
– Make diversity part of the solution: In North America, diverse profiles are underrepresented at all levels of aerospace and defense. Yet, the role of chief diversity officer is only present at various organizational levels in 40 percent of the U.S. Fortune 400 Advanced Industries companies, including those in A&D.
– Ensure retention by building a healthier organization: 64% of global companies have a better organizational health score than the median A&D one. Two-thirds of the behaviors that drive organizational health for A&D companies fall below the benchmark, notably role clarity and employee involvement.
- July 19: Future air mobility funding landscape – Analysis of McKinsey’s most recent data, due for release at the show, indicates the FAM funding boom is evolving as it grows.
– Industry funding to date now sits at $14.7 bn, a $1.9 bn or 25% increase in just the last six months.
– Funding since last year has shifted to the sustainable aviation segment; it was previously dominated by manned FAM at 70%, which is only at 50% in 2022.
– After a SPAC frenzy, the deal value and deal count shifted back towards venture capital with 75% going through VC in the last six months, versus 50% in 2021.
– Decarbonization will drive more interest in sustainable conventional take-off and landing aircraft powered by battery electric, hybrid and hydrogen sources.
– The cargo delivery market could be ready to scale with potential capital influxes from small to large drone sizes.
– Most early VC money in FAM was allocated to the first cohort of entrants. As markets mature and more niches emerge, many fast followers may invest.
- July 21: Satellite internet ownership – Satellite internet, available for 25 years at a relatively high cost and low performance, is finally changing thanks in part to a new generation of non-geosynchronous orbit constellations. Who is best positioned to deliver and why?
– Traditional aerospace companies may struggle to raise sufficient—and sufficiently patient—capital while simultaneously developing profitable markets.
– Tech giants have the required capital but will be entering an unfamiliar market and developing new technologies.
– Media, telco and content companies could provide a large customer base and offer compelling entertainment content, but they might lack the capabilities required to build and operate such extensive space systems.
– NGSO natives with new business models will not burdened by historical ways of operating constellations, but they would need to assemble the right backers and suppliers to gain the needed capital.
– Traditional satellite-communications providers have experience with sales and regulations but might not be able to quickly adapt their current business model.
28 June 22. HKTDC launches brand-new exhibition model EXHIBITION+.
International Sourcing Show opens in July; online promotion extended to one month before and after physical fair.
International trade fairs and sourcing modes have seen dramatic changes in the wake of the COVID-19 pandemic, with the organisers of many physical exhibitions and seminars taking a new digitised or hybrid path. To assist enterprises in adapting to the new normal, and help them stay closely connected to international buyers, the Hong Kong Trade Development Council (HKTDC) is launching the brand-new hybrid exhibition model EXHIBITION+ to strengthen its exhibition platform. Meanwhile, the HKTDC International Sourcing Show runs from 5 to 8 July at the Hong Kong Convention and Exhibition Centre (HKCEC). Exhibitors and buyers at the event will be among the first to enjoy the smart business-matching platform, Click2Match, to actively assist them in seizing business opportunities.
HKTDC Deputy Executive Director Sophia Chong said: “The pandemic has had a tremendous impact on Hong Kong’s economy and particularly on small and medium-sized enterprises (SMEs). Amid the ongoing pandemic and geopolitical tensions, many enterprises have sought support from policies and aid packages to help them ride out the storm. From March 2020, the HKTDC adjusted quickly to the new reality, moving its various physical fairs, large-scale seminars and business-matching meetings to online platforms, striving to continue connecting local businesses with international buyers and offering various kinds of support. Now, the Council is launching EXHIBITION+ to help enterprises get better familiarised with digital platforms and capture online-to-offline international opportunities around the clock.”
More than 90% of buyers have used online sourcing platforms
According to a recent buyer survey conducted by the HKTDC, which interviewed 600 international buyers from Association of Southeast Asian Nations (ASEAN) countries, Australia, Europe, Mainland China and the United States, most respondents (93%) had used online sourcing platforms, and over 85% had participated in virtual fairs to meet their sourcing needs. The majority of respondents said they would be willing to conduct sourcing through physical fairs (63%) or hybrid fairs (59%) once travel restrictions are lifted. The survey findings revealed that in the future, physical and online-to-offline integrated fairs could complement each other. (Key survey findings are shown in the appendix below.)
EXHIBITION+ reinvents trade fairs to serve businesses anytime, anywhere
EXHIBITION+ comprises four key exhibition elements, including HKTDC-organised physical fairs, the smart business-matching platform Click2Match, online-to-offline seminars under the Intelligence Hub, and the hktdc.com Sourcing platform, to provide round-the-clock services that boost the flexibility and effectiveness of business promotion for SMEs and offer benefits such as extended fair periods, expanded platforms and enhanced opportunities. EXHIBITION+ extends face-to-face interactions from physical exhibitions to an online smart business-matching platform to help enterprises connect with business partners proactively. As always, the HKTDC’s 50 global offices will actively recruit international buyers, while its business-matching specialists will match suitable exhibitors according to buyers’ sourcing demands, and arrange online and offline meetings to facilitate business cooperation.
Experience a unique business journey
With EXHIBITION+, exhibitors can start displaying their products to buyers on the fair website one month before the physical fair, while buyers can browse for products and shortlist exhibitors. One week before the physical fair, both buyers and exhibitors can actively search for business targets through the Click2Match platform, check out AI-recommended leads and send meeting requests. During the physical fair, they can meet at the fairground or online via Click2Match, while further online meetings can be scheduled and conducted up to one week after the fair. Exhibitors can still receive sourcing enquiries from buyers up to one month after the fair.
Click2Match connects suppliers with global buyers in a click
Smart business-matching platform Click2Match is built on the HKTDC’s extensive database to greatly enhance the accuracy of smart matching through AI and big data analytics. Compared to physical exhibitions, where exhibitors typically need to wait for buyers to visit their booths, Click2Match enables them to actively search for suitable buyers and arrange meetings with global buyers. The platform features meeting scheduling, video conferencing, instant messaging, message translation (up to 14 languages), and file-sharing functions to facilitate easy communication between buyers and suppliers.
Fair attendees need just one account to seamlessly connect to the various HKTDC online platforms, allowing them to navigate between fair websites, Click2Match, hktdc.com Sourcing and the HKTDC Marketplace App anytime and anywhere. In addition, a series of online and offline seminars and conferences will be hosted during exhibition periods, helping attendees tap into the latest market trends by attending activities in person or watching via livestreaming or playback.
Some exhibitors were given prior access to use the Click2Match platform in March. One of the exhibitors, Zuri Jewelry Company Ltd Director Victor Yiu, said the platform is very user-friendly. “We can even check buyers’ information before the fair and understand their sourcing demands, allowing us to better prepare for meetings and select the right products for buyers,” Mr Yiu said. Another exhibitor, Chit Tat Clock & Watch Co Ltd General Manager Philip Lau, said he is using Click2Match to actively search for overseas buyers. “We will keep track of AI-recommended leads, look at their sourcing demands and schedule meetings in advance, hoping to increase the chance of orders being placed.”
hktdc.com Sourcing helps explore blue ocean opportunities
As an extension of the physical fairs, hktdc.com Sourcing provides a trusted year-round online promotional platform. In addition to connecting with buyers at physical fairs, exhibitors can also seek out potential buyers in unexplored blue ocean markets, such as those specialising in online sourcing and overseas buyers that are unable to visit fairs. The platform shows exhibitors’ profiles, along with a comprehensive overview of their products and services, increasing their exposure to buyers. The HKTDC recently added a “Request for Quotation” (RFQ) service to the platform, collecting sourcing requests from quality and reliable buyers and helping suppliers to seize every opportunity.
Comprehensive support to help SMEs’ transformation
To comprehensively facilitate SMEs to upgrade and transform their business, and to help them maintain their competitiveness, the HKTDC offers a series of platforms and services, including the Digital Academy and E-Tailing Academy, providing professional training related to e-commerce and digital business. The Council also collaborates with major technological enterprises to provide cost-effective e-commerce, digital marketing and enterprise resources planning for SMEs.
T-box helps SMEs create business opportunities
Transformation Sandbox (T-box) is a three-month programme initiated by the HKTDC to promote SMEs’ business upgrading and transformation, catering to their needs in the areas of branding, e-commerce, manufacturing and supply chain solutions and exploring new markets. The programme provides advisory services, workshops and government-funding information, helping enterprises to navigate trends, enhance techniques and expand their business network. T-box has attracted more than 2,000 SMEs to join since its launch. The HKTDC will step up its efforts to assist Hong Kong’s SMEs in further developing overseas markets through a series of activities. These include liaising with Hong Kong business associations around the world and providing training, group consultations and exchanges with trade committees from foreign chambers of commerce or consulates to join HKTDC’s overseas events, helping to build commercial connections and arrange business matching.
The HKTDC also strives to support SMEs in exploring business opportunities in other mature or new markets, including continuous support for Hong Kong companies in developing business in the ASEAN bloc and reinforcing the HKTDC’s flagship overseas promotional events. For example, the “Think Business, Think Hong Kong” event will be enhanced with online-to-offline promotional platforms, offering a continuous business matching service along with an SME support scheme and various training activities, helping Hong Kong companies to connect with global enterprises and seize business opportunities in a more effective way.
Physical International Sourcing Show runs in parallel with online Click2Match
The upcoming HKTDC International Sourcing Show brings together seven trade fairs, including the HKTDC Hong Kong Electronic Fair (Spring Edition), HKTDC Hong Kong International Lighting Fair (Spring Edition), HKTDC Hong Kong Gifts & Premium Fair, Hong Kong Houseware Fair, HKTDC Hong Kong Fashion Week, HKTDC Hong Kong International Home Textiles & Furnishing Fair, and the Hong Kong International Printing & Packaging Fair, attracting over 1,700 exhibitors from 12 countries and regions with more than 83,000 products. The physical edition will be held from 5 to 8 July in the format of display showcases. Exhibitors and buyers who cannot join due to international travel restrictions can stay connected through Click2Match, the smart business-matching platform of EXHIBITION+, from 5 to 15 July.
Four themed categories display a variety of products
Themed “Smarter Sourcing · Better Living”, the International Sourcing Show will highlight a broad range of quality lifestyle products under four main categories, namely Healthy Living, Smart Living, Stylish Living and Sustainable Living. Highlighted products include the TiO2 table lamp, which features 24/7 antibacterial, antivirus, and air purification functions; smart cycling glasses that combine micro-lens, micro-display and thin-film encapsulation Internet of Things (IoT) technologies; and a wireless “lapstation” bag combining wireless charging and workstation, with heat ventilation and water-resistant design.
Seminars share marketing strategies and innovative technology applications
A host of seminars will be held during the show covering hot topics such as digital and social media marketing strategies, testing and qualification services for textiles and shoe production supply chains, the aesthetics of scientific design research, IoT innovation beyond the home, and an introduction to the government’s Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund). There will also be networking sessions, assisting enterprises to stay connected and expand business opportunities.
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