The ESTnetAnnual Review 2014

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Introduction

This Annual Review of ESTnet activity between

April 2013 and March 2014 provides a flavour of

how the ESTnet sought to fulfil its aims during

a very busy and ultimately successful year.

Selected highlights included the increase in

collaboration between our members, some

examples of which are included within this review,

reflected in the growth in membership and

member activity.

Another highlight was the publication of the

landmark Welsh Technology Industry Report 2013,

in partnership with Deloitte, the largest of its kind

undertaken in Wales.

Value was added to our membership through

our partnership with colleagues in Aerospace

and Automotive as part of Industry Wales, and

our very close relationship with the Knowledge

Transfer Network.

Finally, the ESTnet Awards 2014 were a fitting

conclusion to the membership year. 370 of our

colleagues gathered at the SWALEC Stadium

to celebrate the achievements of the industry in

Wales as a whole, represented by the excellent

Award winners and nominees.

We plan to build on this success by implementing

exciting new projects based on the knowledge and

insight we have gathered recently. For example,

a new Year in Industry project working with the

University of South Wales, and of course the Wales

Festival of Innovation in partnership with the Welsh

Government and KTN.

As valued members and associates I would

welcome your views and suggestions on what

the ESTnet should do for you.

Please feel free to contact me on

avril.lewis@estnet.uk.net or call 029 2002 9700.

Best wishes,

Avril Lewis,

Managing Director,

The ESTnet

The ESTnet exists to help its members grow their business through trade and collaboration. It creates

business opportunities, develops the pool of talent within the industry, provides insight for the industry,

and, essentially, acts as the voice of the industry for the industry in Wales.

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Contents

Introduction 3

About the ESTnet 4-5

ESTnet Activity Report 2013-2014 6-7

Electronic and Software Technologies industry Facts and Figures 8

ESTnet Research 2013-2014 9

ESTnet Awards 10-11

Case Study – Gloversure 12

Case Study – Working with Schools’ 13

What our Members tell us 14

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About the ESTnet

ESTnet members make everything from the

components in our smartphones to the apps

that drive them. We develop the technologies

that enable soldiers overseas to communicate

with families back home, produce products that

diagnose and improve healthcare, and even

enable electronic power steering in cars.

The ESTnet supports its members by building

a network of technology businesses that is

representative of the industry in Wales.

Using a five pillar strategy we:

• Create and facilitate business opportunities.

• Events and networking opportunities based

on member needs, such as the ESTnet

Software Exhibition, Members Meetings,

the ESTnet Awards and online Knowledge

Vault. 88% of members developed new

business contacts, and a further 35%

gained new business with fellow members

as a direct result of our work this past year.

• Develop and expand the talent of the industry

in Wales.

• Ensure a flow of talent by providing data

for evidence-based skills planning and

driving partnerships with academic institutions

in Wales.

• Promote opportunities for innovation and

research and development.

• Through our events, affiliate members and

Knowledge Vault we nurture local supply chain

partnerships and inform members of research

and development support available.

• Promote and signpost opportunities for finance

and investment.

• Work with the Knowledge Transfer Network,

Welsh Government and others to ensure

our members are fully informed of latest

opportunities and financial support.

• Provide strategic insight and influence.

• Act as the voice of the industry for the industry.

Champion the importance of the electronic

and software technologies industry in Wales

with key stakeholders.

• Ensure our members are up to date on the

current industry and future trends through

ESTnet and partner research.

Companies within the electronic and software technologies sector in Wales touch the lives of millions

of people around the world through their skills, talent and innovation.

Build a network that is representative

of the industry, size and location

Business Opportunities

Skills Innovation Investment Insight and Influence

Pillar Pillar Pillar Pillar Pillar

Marketing and Communications

Provide

strategic insight

on our industry

and influence

key stake

holders,

government

and policy

makers

Promote and

signpost

opportunities

for finance and

investment

Promote

opportunities

for innovation,

R & D and

collaboration

Develop,

nurture and

expand the

talent pool

of people

Create and

facilitate

business

opportunities

Information Technology

Finance

Corporate Governance

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• 1000 company profiles are included on the

ESTnet Knowledge Vault.

• The ESTnet increased its membership by 30%.

• The ESTnet exhibited at 4 high profile industry

exhibitions.

• 88% of ESTnet members gained new business

contacts as a direct result of their membership.

• 35% of ESTnet members gained new business

as a direct result of their membership.

ESTnet Activity Report April 2013 - March 2014

The ESTnet is a growing community representing the electronic and software technologies industry in

Wales. In 2013-2014:

• The ESTnet hosted and supported 20

business networking events for its members.

• The ESTnet attracted over 1250 companies

and individuals to its events.

• The ESTnet published 4 strategic insight reports,

including the ESTnet Skill Survey and landmark

Welsh Technology Industry Report with Deloitte.

• The ESTnet published 49 articles in the

Welsh and UK media promoting the ESTnet

industry and its members, with a total circulation

of 2,462,121.

• The ESTnet attracted 300 additional companies

to receive information on ESTnet industry and

member news.

• The ESTnet added an additional 200 Twitter

followers from the industry in Wales, the UK

and abroad.

• The ESTnet website was visited by 5850

individuals and businesses.

• Visitors to the ESTnet website increased by

63% over the previous year.

30%The ESTnet increased its membership by 30%.

The ESTnet attracted over 1250 companies and individuals to its events.

1250Visitors to the ESTnet website increased by 63% over the previous year.

63%w.w.w.35%of ESTnet members gained new business as a direct result of their membership.

88%

of ESTnet members gained new business

contacts as a direct result of their membership.

The ESTnet website was visited by 5850 individuals and businesses.

1000 company profiles are included on the ESTnet Knowledge Vault.

5850

1000 VAULTKNOWLEDGE

VAULTKNOWLEDGE

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The Electronic and Software Technologies Industry - Facts and Figures

The Industry in Wales

• The ESTnet represents over 1000 electronic

and software technologies companies in Wales.

• Electronic and software technologies companies

employ around 24,000 people in Wales.

• The combined turnover is over £7billion.

• The software technologies industry is

characterised by small, young, dynamic

companies with a turnover of under £5m.

• The ICT Sector has the largest Gross Value

Added (GVA) per job in Wales – £92,900.

The Industry in the UK

• The UK is the 3rd largest electronics producer

in Europe and 13th largest in the World.

• The electronics industry contributes £12 billion

to the UK GVA.

• The UK software market is the 2nd largest in

Europe with annual sales of £8billion.

The Global Industry

• The global software technologies market had

total revenues of $293 billion in 2011.

• The total value of the market is expected to

increase to $397 billion by the end of 2016.

• Major markets where electronic and software

technologies enable innovation and development

across the globe include: Renewable Energy,

Automotive, Financial Services, Aerospace,

Healthcare/Medical, Food and Farming,

Construction. Defence, Leisure and Tourism

and Transportation.

ESTnet Research 2013 - 2014

The Welsh Technology Industry Report 2013

• 77% are more optimistic about the Welsh

economy for the next 12 months.

• 94% of companies expect to increase

employment in the next 12 months.

• 65% are not aware of Horizon 2020, the new

EU funding framework.

• 69% export, 50% get over half their business

from overseas.

• 41% of Welsh technology micro businesses

export goods or services.

• 65% of companies do all of their research

and innovation activity in Wales.

The ESTnet Skills Survey 2013

• 70% of employees in the electronic and

software technologies industry are qualified

to NQF level 4 or above against a national

average of 32%.

• By 2016 it is expected that 60% of the

workforce will have a highest qualification level

of NQF level 6.

• 60% of ESTnet members work with schools,

colleges or universities.

• 60% identified supply chain management

as the most important training need for

directors and managers.

• 35% undertake joint R&D projects with

universities.

• 33% plan to increase involvement with

apprenticeships programmes.

In 2013-2014 the ESTnet published two

landmark reports, the ESTnet Skill Survey 2013

and the Welsh Technology Industry Report 2013

in association with Deloitte. Both reports can

be viewed in full on the ESTnet website.

The below sample of headline figures illustrate

the value in undertaking this research:

The ESTnet works to provide its members and stakeholders with valuable strategic insight to support

their decision-making, insight to identify potential opportunities, trends, skill needs and future

prospects for the industry. The ESTnet bases future strategy and new projects on the evidence

and insight contained within its research.

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The electronic and software technologies sector in Wales turned out in their hundreds to celebrate the

achievements of their peers and the sector as a whole at the ESTnet Awards 2014, which took place on

27 March at the SWALEC Stadium, Cardiff.

The second annual Awards were attended by

more than 370 representatives from the industry in

Wales and were joined by Mrs. Edwina Hart AM,

Minister for Economy, Science and Transport.

There was a lot of interest surrounding the ESTnet

Awards in the Welsh media and on social media.

Coverage generated in the Welsh and National

media reached an estimated circulation of 610,000

within the electronic and software technologies

industry, with tweets generated in the lead up, during

and after the event reaching 30,000 twitter accounts.

The WinnersCongratulations to the winners:

Start-Up Company of the Year

Leopard Digital Ltd.

SME of the Year

IAC Ltd

Company of the Year

SPTS Technologies Ltd.

Innovative Product of the Year

General Dynamics UK Ltd

Exporter of the Year

SPTS Technologies Ltd

Innovative Software Package

or Application

Vizolution Ltd

Supplier of the Year

Axiom Manufacturing Services Ltd

Young Engineer of the Year

Winner: Anthony Harrison – IR Newport Ltd.

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Case Study

This was the first event linked specifically with

business and was regarded by the school as

a great opportunity for students to gain a better

understanding of what opportunities are available

to them.

Many areas of the diverse electronics and

software technologies industry were present,

representatives from companies including, Axiom

Manufacturing, SPTS, General Dynamics, Ernst

& Young, Siemens, Celtic Manor, Harding Evans

and Barclays attended the half-day event.

The students, aged between 13 and 14 years were

able to speak with young graduates, apprentices

and business leaders to gain a first-hand account

of each organisation, and learn of potential

future opportunities.

David Davies, managing director at Axiom,

comments, “It is not only skilled engineers that

are needed, the industry encompasses many

skills e.g. sales, purchasing, logistics, software

development, IT, finance etc. Many people fail

to consider these disciplines when they think

of their career opportunities. There is a huge

image problem and with more events and

engagement with schools like Bassaleg,

we can help to address this.”

The careers fair provided the opportunity for

employers to make lasting impressions on

students, attracting them for future employment

and addressing the demand for future engineers.

The day also provided a platform for students to

learn more about the career opportunities available

to them as teachers were also on hand to discuss

subjects suitable for their chosen career paths.

Andrew Evans, commercial director at SPTS,

said: “We have always been keen to employ

local people, and strive to play a key part in the

development of future skilled workers for the

electronics sector. By attracting young people we

ensure that our workforce has the practical skills

and qualifications the business needs.”

Avril Lewis, managing director of the ESTnet

concluded: “Wales’ technology sector is a vibrant

and growing industry, but we need to attract the

students into relevant courses if it is to remain

successful. Which is why it is imperative that

businesses do more to support and engage

with local schools, colleges and higher education

institutions, and not ‘wait’ to be approached.

Events like this are a perfect example of how

it can work.”

The ESTnet supported an event at Bassaleg School to engage its students and help plug the skills gap

with its first industry careers fair.

The ESTnet works with Industry to help engage the next generation

Case Study

In only their first year as members they won new

business after pitching their services to fellow

members and taking advantage of the networking

opportunities on offer. They were even shortlisted

for an ESTnet Award.

From their Mid Wales base Gloversure provide a

wide range of technology based services to clients,

from mobile app development services to web

design and custom application development. They

joined the ESTnet after a recommendation from

fellow Welshpool company and ESTnet members

Greeve. They were soon presenting to other members

at a North Wales Business Networking event.

Gloversure Managing Director, Richard Glover said:

“I have found the ESTnet a valuable network to

generate leads for Gloversure. At our first meeting

we made a 5 minute pitch to other members,

generated new leads, and it continued from there.

We were delighted to be shortlisted for SME of

the Year at the ESTnet Awards, of course we were

disappointed not to win, but it was great exposure

which led to still more contacts. We have also

had other ESTnet members recommend us to

businesses outside the membership network that

has also generated new business in the past year.”

Tim Hill from TH Consulting, is one of Gloversure’s

new business partners, “After meeting with

Gloversure at an ESTnet event we’re now

working together on an app which will give intuitive

understanding of finance from 12 year olds to

directors of PLCs in the UK & beyond. This is a

very exciting project which I’m very pleased to be

sharing with Gloversure. I don’t believe there is

anyone who could have a better understanding of

what I’m trying to achieve and with a team that is

most likely to produce it. We also hope to develop

computer based games for education which would

go a significant way to improving numeracy skills

in the UK.”

Partnerships can often arise between ESTnet

members from within the same industry sub-sector,

as shown by the collaboration between Gloversure

and fellow software solution provider Absolute Spirit.

Alan Ellicott, Managing Director Absolute Spirit said:

“As a result of our meeting at the ESTnet Software

Exhibition we were able to contact Gloversure to

assist in an emergency when a client had issues

that lay outside our specialisms in Microsoft

technologies. The relationship enabled us to

contact Gloversure for their support who allocated

someone immediately. The problem was solved

within hours. We are extremely grateful and so is

our client. Since our initial contact, we have used

Gloversure a number of times and have been

extremely impressed with their quick response

and helpful manner.”

Welshpool based Gloversure are a long established bespoke software/web development company

who have certainly made the most of their ESTnet membership.

Gloversure – Making the most of the ESTnet Membership

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What our Members tell us

“ I’ve been to several of the events and awards dinners organised by you and your team, they’ve

always been fun and very worthwhile in terms of networking opportunities and the fact that they

promote our industry so positively to the WG and other observers.”

“ The ESTnet is not just about talking. It has clear objectives and targets, and gets things done. My

company needed new engineers. I spoke to the ESTnet about it, was immediately given the right

contacts and very soon had the recruits I needed. The ESTnet is clearly a very efficient organisation.”

“ To be honest did not know what to expect

with the event or if it would be applicable for

our needs. Very pleased to say that it was

very suitable. We are looking at developing a

new business and the information provided

and the contacts made in such a short time,

is exceptional.”

“ The event was a comprehensive view of the

Funding Schemes available for R & D, Capex

and Training etc – all of some relevance for

various stages of company expansion.”

“ This was a well presented and informative

event, putting the various grant options

into a business context. It covered the

specifics, and also useful additional

information such as common pitfalls

and limitations.”

“ The ESTnet Awards certainly strengthened

our feeling that we belong at our industry’s

top table and that for us, as a company,

was very valuable indeed.”

“ It was great to have the opportunity to talk

to professional people. It is an important

and select group, who are certainly potential

customers for the company.”

“ Being a member of a larger group it helps

to raise our profile in our own country.

It gives us a voice, without it we might be

ignored by Government and certainly

by the media. It helps us punch above

our weight.”

“ Great event last night, talking technology,

investment and the skills gap in Wales.”

The ESTnet Board

The ESTnet Board of Directors is selected to drive business opportunities and maximise the sector’s

significant contribution to economic growth.

Ian Menzies

Chairman, the ESTnet.

Senior Capability Director,

General Dynamics UK Ltd

Avril Lewis

Managing Director,

the ESTnet.

Idris Price

ESTnet Director

with responsibility

for North Wales

Christian Coates

Managing Director,

Method4 Ltd

Rolf Dahlmanns

Managing Director,

Electronic Motion Systems

David Davies

Managing Director,

Axiom Manufacturing Ltd

Alan Davies

Development Director,

Open Innovation Arloesi,

Airbus Group

Chris Meadows

Communication Director,

IQE plc

Richard Rees

Vice President and

Chief Finance Officer,

SPTS Technologies Ltd

Rob Wilson

General Manager,

Sony UK Technology Centre