Contents. 5 // Chairman s Review. 7 // Programme Board Visits. 8 // People Working Group. 10 // Science & Technology Working Group

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1 2017 Annual Review

2 Contents 4 // A Brief History 5 // Chairman s Review 7 // Programme Board Visits 8 // People Working Group 10 // Science & Technology Working Group 11 // Communications Working Group 12 // FutureNEST 12 // Scholarships 13 // Finances 14 // Members

3 A Brief History Chairman s Review UKNEST was formed in 2005 as a forum to represent UK Naval Engineering, Science and Technology with a focus on sustaining the design and engineering intellectual base of the sector. UKNEST has a unique membership drawn from the Ministry of Defence, including the Royal Navy, Engineering Institutes and companies associated with all areas of the life-cycle of Naval platforms, systems, equipment, people and services. Today, UKNEST operates as an Unincorporated Association with a growing membership of over 20 organisations. It retains the original objectives to develop and sustain a world-class naval engineering, science and technology intellectual base thriving through great people and superior technology. UKNEST is organized around a Campaign Plan managed by a Programme Board, with representatives from each Member organisation. The programme is delivered through Working Groups responsible for specific activities. Currently, the two principal Working Groups are addressing People and Science & Technology. A third Working Group is responsible for communicating UKNEST information that includes the development and maintenance of a website ( Since its formation, UKNEST has been responsible for delivering a significant number of initiatives that have included: Contributed to the 2007 Defence Industrial Strategy Contributed to the 2007 RAND report into sustaining skills in the UK Naval shipbuilding industry Provided written contributions to Government on House of Commons (HoC) Defence Committee enquiry into the future of the strategic nuclear deterrent The HoC Innovation, Universities and Skills committee (2008) enquiry into engineering in the UK Secured an EPSRC grant for the Green Ship through a consortium led by University College London that included other universities, Rolls Royce and BMT Created & managed the UKNEST website (that has been re-developed tri-annually) focused at encouraging graduates and high-lighting the opportunities within the sector Organised a Career Day in Portsmouth that was opened by the Minister for Business Innovation and attended by University career advisors and academic staff Created a roadmap for future science & technology that formed the template for the National Maritime view Provided funding, personnel and contributed to establishing and running the Marine Industries Leadership Council (MILC) Marine Strategy Provided Best Practice across all key Working Groups of MILC, now represented through the Marine Industries Alliance activities. Provided support to numerous maritime initiatives including the National Shipbuilding Strategy and Growth Partnerships. Published surveys focused on the people employed in the Naval Enterprise; their recruitment, retention and future requirements. Funding a Scholarship for undergraduates. FutureNEST graduates and apprentices, responded to a challenge from the Royal Navy and developed the Nautilus 100 submarine concepts. The outcome was widely publicised and formed a central display at 2017 Defence & Security Equipment International (DSEi). UKNEST supported the Year of Engineering 2018 Partners Board. Since its formation, UKNEST has been responsible for delivering a significant number of initiatives This year the Chairman s Annual Review provides an opportunity to reflect on the Year of the Royal Navy and the continuous progress of UKNEST. At the start of 2017 the Defence Secretary Sir Michael Fallon said: We are investing billions in growing the Royal Navy for the first time in a generation with new aircraft carriers, submarines, frigates, patrol vessels and aircraft all on their way is the start of a new era of maritime power, projecting Britain s influence globally and delivering security at home. What a year it has been! The Naval Enterprise can take huge pride in numerous significant milestones such as: George Bernard Shaw keel laying (February) HMS Forth named (March) Information Warrior (March) HMS Audacious launch (April) HMS Spey cut steel (April) HMS Queen Elizabeth sea trials (June) HMS Glasgow steel cut (July) HMS Queen Elizabeth enters Portsmouth (August) Nautilus 100 (August) HMS Tiderace arrival in UK (September) National Shipbuilding Strategy (September) HMS Medway named (October) HMS Tidespring acceptance into service (November) 350th deterrent patrol (December) HMS Forth acceptance into service (January 2018) Whilst 2017 created a lot of media coverage for the Naval Enterprise it is likely that 2018 will prove far more important in shaping our longer-term health: Brexit Deal National Security Capability Review (NSCR) Outcomes National Shipbuilding Strategy progress review Australian frigate competition Canadian frigate competition UK T31e frigate competition UK Fleet Solid Support competition Significant naval programme milestones: T45 PiP contract End of Queen Elizabeth Class build Political dynamics Local elections impact on national politics Trump visit to UK 4// 5//

4 Against this strategic context UKNEST has been progressing our skills and technology agenda and the robustness of our internal governance. This report contains updates on our campaigning to improve enterprise skills, technology & investment, and our efforts to raise the profile of the Naval Enterprise for the benefit of all. On skills we have continued our well regarded UKNEST Scholarships, piloted inter-company secondments, piloted a return to work programme, participated in national maritime skills events and supported preparations for the Year of Engineering. On technology we have continued to shape naval technology roadmaps and worked on think pieces related to naval technology innovation. On communications we have continued develop and update our popular web site. We have also sponsored and engaged in high profile media campaigns such as Nautilus 100. The naval innovation images created under Nautilus 100 had over 400 million worldwide views and Nautilus 100 received coverage in national newspapers, magazines and online. The campaign was even published in the Royal Academy of Engineering magazine (Ingenia December 2017). All this activity has raised the profile of the Naval Enterprise. We also conducted a governance review and have improved our internal processes with adjustments to policy, processes and procedures. This was important work as our ambition is to increasingly build UKNEST as a doing organisation able to create and deliver meaningful skills or technology interventions for the Naval Enterprise. UKNEST has been highly active and supportive of broader campaigns that benefit the naval enterprise: Supported Maritime Mission Systems Enterprise Participated in the Defence Suppliers Forum Skills Survey National Maritime Big Skills Debate (presentation and debate) Smallpeice Trust (presentation) DSEi (Nautilus 100, student visit) Year of Engineering 2018 (on Partner Board) Preparations for DSEi 2019 Programme Board Visits Programme Board meetings were held at Lloyd s Register, Global Technology Centre, Southampton (March), Institute of Marine Engineering, Science & Technology, London (July) and the Royal Naval School of Marine Engineering, Gosport (November). In March, the Director of the National Shipbuilding Strategy, Ian Gibson, gave an update and outlined the areas that he considered could be addressed by UKNEST. Workshops were held to examine the use of modularity and potential blockers and constraints. The output from these workshops was recorded and forwarded to the NSbS. The meeting included a tour of the facilities of the Global Technology Centre and a visit to the newly installed test tank. The day ended with a dinner at which the UKNEST Annual Report was presented to senior guests. In July, the Programme Board visited the Institute of Marine Engineering, Science & Technology offices in London and conducted workshops on the potential engagement with the NSbS and an overview of the results from the UKNEST skills survey. Members of the NSbS team stimulated discussions that concluded with a proposal for UKNEST to engage in the next stages of the NSbS, with particular focus on issues associated with people and skills. Members made valuable contributions to the final draft of the Skills Survey. The third Programme Board took place in the RN School of Marine Engineering at Gosport. The Board meeting was attended by the twelve successful UKNEST and Lloyds Register Foundation scholars. The scholars, in conjunction with FutureNEST graduates, led workshops focused on developing ideas for a UKNEST initiative to support the Government sponsored Year of Engineering. It was concluded that a marine-centred competition would be progressed, aimed at both primary and secondary schools. The formal meeting was led by a presentation from Jo Parry (Department for Transport) describing the vision and objectives for the Year of Engineering. As a result of the presentation and workshop, a dedicated Working Group was established to lead the competition project. The visit ended with a tour of the training facilities at HMS Sultan, including marine machinery and helicopters, that was followed by a dinner in the wardroom. The only conclusion that can be drawn from this level of activity and the levels of individual engagement is that UKNEST membership continues to bring value: the direct engagement with the RN and MOD Customers. providing the opportunity to debate and address national challenges (e.g. SDSR, T31e, NSbS) as a Naval Enterprise. the business intelligence efficiency offered by an organisation networked across numerous government/industry initiatives. the opportunity to network across the Naval Enterprise. our collective ability to build up the Naval Enterprise profile and reputation. 30% of our income spent directly on Scholarships. ongoing development of 40 graduates through FutureNEST. It is evident that UKNEST as an active community is making a positive difference for the Naval Enterprise. I m really pleased that the UKNEST team continue to find their level of personal investment meaningful, worthwhile and fun. Tony Graham UKNEST Chairman 6// 7//

5 People Working Group During 2017 the People Working Group has focused on four primary objectives: graduate exchanges, returners, health of the sector and supporting the Year of Engineering Graduate Exchanges The scheme was piloted between QinetiQ and BMT and proved the processes and metrics for future exchanges. The aim of the scheme is to allow graduates to gain all round experience in different areas and working environments across the Naval Enterprise. QinetiQ and BMT reported benefits and a graduate presented to a Programme Board on the valuable experience that he had gained. Following the successful pilot, other Member companies have the opportunity to extend the programme. Returners Programme UKNEST successfully launched our Returners Programme that addresses 3 key issues identified within the Naval Enterprise: Lack of mid-senior career engineers Lack of female engineers Perceived difficulty in attracting and re-training engineers from other sectors. The programme is a 13 week professional internship for male and female engineers returning after a career break of 1 year or more. Prior to commencement, the returnee will undergo career coaching and confidence building workshops and be offered access to a variety of support mechanisms. During the programme, the returnees will shadow a current engineer/s and either work on CV worthy assignments or undertake training to update their skills. Pilots have already started with: Wartsila DSTL Year of Engineering 2018 UKNEST has partnered with the Government sponsored initiative to ensure that the Naval Enterprise is central to the Year of Engineering We are planning a nationwide Naval Engineering Competition run jointly by UKNEST and the Royal Navy. The aims of the Naval Engineering Competition are to: provide school children with an opportunity to have a go at engineering demonstrate to school children that engineering is exciting, rewarding and creative establish a legacy through an annual naval engineering competition The competition is to Design a vessel that can rescue 1000 people from the sea. The competition will be open to all children aged 18 and below and will be judged in 3 groups. Launch is planned for March Our programme has been designed to ensure that we continue to attract and retain the best talent. We will partner with relevant national STEM delivery programmes and engineering partners. The objectives are to develop our staff, in a highly competitive engineering market, retain our knowledge and skills and position us as the sector of choice for the next generation of engineers and technologists. Atlas Elektronik Babcock BAE Systems People Survey We have completed a survey to examine the health of the sector in terms of recruitment and retention of staff. The analysis will be published in 2018 and compliments previous UKNEST reports on the Naval Engineering Workforce, 2015 and The UK Naval Engineering, Science & Technology Skills Gap Recruitment & Retention, INEC The overall picture is of a thriving sector with both good recruitment, across all levels and subjects, as well as retention of staff. Numerous issues have been highlighted that include the limited number of women in the sector and the need to work closely with academia to ensure a healthy pipeline of talented and capable apprentices and graduates, particularly in niche subjects. The ageing workforce and potential loss of experience and knowledge continue to be a perennial problem. However, the removal of compulsory retirement and the enthusiasm for older employees to remain within the sector appear to be aiding the transition of the sector to meet the future work-load. 8// 9//

6 Science & Technology Working Group The Science & Technology Working Group is the largest in UKNEST and meets regularly throughout the year. It has active participation across the Naval Enterprise gathering Subject Matter Experts (SMEs) from a significant number of S&T companies, Government agencies and organisations including the Royal Navy. This provides the group with a unique viewpoint covering a wide user and supplier community, enabling us to understand important issues facing the RN and providing a collective view on strategic innovation and technology development to address these issues saw a major reassessment of the group s objectives. The purpose of the group is twofold. First, the group meetings provide regular opportunities to gather together to share and discuss major issues facing the Naval Enterprise. The second is to capture those issues and address them through a Campaign Plan. Outputs from this plan are in the form of meetings, workshops, reports, presentations & analysis and White Papers. The Campaign Plan aims to cover five broad topics: Creating prosperity in the Naval Enterprise Efficiency in Engineering Innovation Agile exploitation of S&T Changing the Naval Paradigm The output of the first topic will be the publication of a White Paper covering a number of themes pertinent to future warship and submarine development for the next 30 years. The paper aims to support the National Shipbuilding Strategy by challenging the current development lifecycle and technology insertion of future warships and submarines. These challenges range from autonomy of on-board operations and off-system systems, the decoupling of platform capabilities and platform systems and envisioning new concepts of operation, doctrine and tactics. Communications Working Group During 2017, the website was further developed to enable more effective access for the Working Groups to enable sharing of information and reference materials. The website has received over 30,000 hits during the year and averages around 80 users/day. There was a peak usage of around 1000 during the press coverage of the Nautilus 100 programme in September. The most viewed pages on the website are associated with the Scholarship scheme and personal case studies. We have continued to add further case studies but more examples are always welcome. A range of branded materials was generated for the stand at DSEi that included new flyers and clothing for the FutureNEST graduates who presented the Nautilus 100 concepts. The objectives of the Communications Working Group for 2018 will be to continue to spread the word about UKNEST contributions to the Naval defence sector. This will be linked to the Government sponsored Year of Engineering. The website will be updated, particularly through the reductions of text and increasing links to primary sources of information. Its intention is to highlight the science and technology employed within the Naval Enterprise. To support better efficiency in engineering, the group has explored ways in which information is shared across the Naval Enterprise. By understanding the ways in which commercial and bespoke toolsets are used and how these share data we will be better placed to understand how efficiency in information exchange can improve collaborative working. To understand the innovation landscape the group held a special workshop to explore and debate the enablers and blockers to disruptive and novel development. This was supported by leading innovation champions from across MoD. Examples of where improvements to innovation could be achieved include setting problems and challenges rather than open calls for ideas. In some cases, Matchmaking between the idea generators and the customers/investors could be a key factor towards successful innovation. Going forward, the primary focus for 2018 is the production and publication of the White Paper setting out a bold vision for a major shift in future warship capability and development. The Campaign Plan will be refreshed and aligned with initiative and outputs from the National Shipbuilding Strategy. Overall our aim is to show that leverage from the UK s Science and Technology base has the potential to transform the Naval Enterprise. 10// 11//

7 FutureNEST Finances FutureNEST is a group of apprentices and graduates from across the Members. The aims of the group are to: Provide resources to UKNEST Working Groups to deliver projects Enable members to gain experience across the Naval Enterprise Offer opportunities to lead and participate in collaborative projects Develop a network across the Naval Enterprise 2017 has been an exciting year for FutureNEST with many successful activities. Members have supported Working Groups, attended Programme Boards and conferences. The first FutureNEST conference was held at the Atlas Elektronik, Winfrith, and included a tour of the sonar manufacturing facilities and testing tanks. The second conference held at BMT, Bath, started with a demonstration of virtual reality technology that was followed with a discussion on the application of this technology to the Naval sector. The outputs from this discussion were developed into a paper that will be presented by a group of FutureNEST graduates at the 2018 RINA Smart Ships conference. In the summer, FutureNEST members were invited to a workshop organised by the Royal Navy in the Ministry of Defence, Main Building, London. Sixteen FutureNEST members were challenged to explore what the underwater battle-space might look like in 100 years. At the end of the workshop, the graduates presented their ideas to the Secretary for Defence Procurement, Harriet Baldwin MP and a range of senior Naval defence staff. The outputs from the workshop were further developed by FutureNEST into the Nautilus 100 future submarine concept. This was launched in a joint UKNEST and RN press release in August that received significant international coverage. The concept formed the centre-point for a display at DSEi that was designed and staffed by FutureNEST graduates. During the exhibition, the stand was visited by many high-ranking officials including the Secretary of State for Defence, Sir Michael Falllon MP and the Second Sea Lord, Vice Admiral Sir Jonathan Woodcock. The Nautilus 100 project demonstrated the ability of UKNEST Members to work collaboratively with the RN to promote the science, technology and innovation of the Naval sector. Subscriptions have remained at 6,000 for the last six years. Balance carried forward from ,327 Income Income from subscriptions was 114,000, supplemented by a grant from Lloyd s Register Foundation towards the scholarship and the addition of one new Member, Leonardo, during the year. Expenditure The principal areas of expenditure in 2017 were to support the scholarships and the central administration and coordination of Working Group activities. Investment in supporting FutureNEST activities has doubled to over 6,000. FutureNEST has continued to promote events throughout the year including presentations at the Royal Corps of Naval Constructors annual conference, Haslar, and supporting the Big Maritime Skills debate, Greenwich. FutureNEST has become more closely involved with the scholarship scheme, providing buddies and supporting a workshop to develop ideas for the Year of Engineering. As a result of the workshop, UKNEST and the RN will be running a Naval Engineering competition in 2018, with FutureNEST providing much of the resource. As a result of the success of the Nautilus concept study, the RN has issued further challenges to the team for 2018 and planning is already beginning on a project for DSEi Scholarships The UKNEST & Lloyds Register Foundation Scholarship attracted over 80 candidates from a broad spectrum of courses, ranging from traditional engineering subjects to chemistry and biology. Noting that 2018 has been designated the Year of Engineering, applicants were required to submit a short brief deascribing how they would promote Naval Defence as a career to the year age group. The wide range of innovative ideas made the final selection of students for interview a difficult process and considerable thanks goes to the UKNEST Members who devoted their time to this process. Seventeen students were interviewed by a joint panel of UKNEST and Lloyd s Register Foundation before the final selection of twelve. The scholars attended the November Programme Board at HMS SULTAN. and led a lively workshop, based on their application briefs, at which a wide range of suggestions was considered. It was decided that UKNEST would promote a school-based design competition organized by a short-term Working Group. All of the Scholars have been partnered with mentors drawn from across UKNEST Members and, for the first time, Scholars have also been buddied with FutureNEST graduates. Scholarships (incl expenses) IMarEST Secretariat Executive Coordinator (incl expenses) Committee Costs & Travel Website maintenance FutureNEST Working Groups (including printing) 12// 13//

8 Members 14// 15//

9

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