Leads Manufacturing Sector According To New Report

A joint annual report released by the Aerospace Industries Association of Canada (AIAC) and Industry Canada today indicates that the Canadian aerospace industry continued to grow in 2014, increasing its national economic footprint and posting best-in-class results for the Canadian manufacturing sector.

The report states that the Canadian aerospace industry is a global industry leader in key niche segments. It leads the world in civil flight simulation and the production of small engines (helicopters and turbo prop); is second in business and regional aircraft production, and third in overall civil aircraft production and in general aviation production.

Key findings in the 2015 State of the Canadian Aerospace Industry report include:

• Aerospace is a significant national economic driver, contributing $29 billion to the national GDP and responsible for employing 180,000 Canadians.
• Compared to the Canadian manufacturing average, aerospace has five times the R&D intensity, more than double the productivity growth, and 47 percent more skilled labor.

Canadian aerospace is also deeply connected to the international supply chain. Over 60% of its exports are supply chain oriented, and those exports are becoming increasingly diversified both in terms of destination and product category.

In order to integrate into global supply chains, Canadian aerospace manufacturers are incurring greater up-front costs, reducing lead times, and being asked to take on greater risk compared to the national manufacturing average.

"Canadians can be proud of our world-class aerospace industry and the economic benefits it generates across the country," said Industry Minister James Moore. "The 2015 report highlights Canada's global leadership in aerospace and the important contributions the industry makes to Canada's GDP, job creation and the country's innovation performance. If we are to continue punching above our weight in aerospace, we must build on our successes. Our government is committed to setting the right conditions to ensure that the aerospace industry and all Canadian businesses continue to compete and succeed on the world stage."

"The State of the Industry report reveals a national industry that all Canadians can be proud of: an economic contributor, a top manufacturing sector, and a global industry leader. Much of this success and momentum comes thanks to the commitment that the government has demonstrated over the past several years to ensuring that programs and policies are in place to ensure the industry's long-term growth and competitiveness. We thank Minister Moore and the government for their leadership and support for our industry, and we look forward to continuing to work closely with him and his Cabinet colleagues to ensure that aerospace continues to drive innovation, economic growth and Canadian jobs for many years to come," said Jim Quick, President and CEO of AIAC.

FMI: Full Report