Canadian aerospace is a $25 billion a year industry, contributes almost 190,000 jobs, and is one of the biggest drivers of R&D and manufacturing.
How has the industry evolved in the last ten years? How is it going to change in the future? And how does this translate into business and procurement opportunities for you?
Last week, the Aerospace Industries Association of Canada (AIAC) and the Department of Innovation, Science and Economic Development (ISED) released the "State of Canada's Aerospace Industry 2018 Report."
Here are the key takeaways:
- Canadian aerospace GDP and jobs have been increasing for the past 5 years - to almost $25 billion in GDP and 190,000 jobs in 2017
- Aerospace R&D in 2017 totaled $1.7 billion - almost a quarter of all R&D in Canadian manufacturing
- 70% of aerospace R&D involved academic, supplier, government, and/or customer partners
- The majority of Canadian aerospace sales is from the commercial sector (86%) followed by the defence sector (12%) and space systems (2%)
- Canada is ranked among the best countries in terms of civil aerospace production
- Canadian aerospace is crucial for the defense sector, comprising almost a third of all defense sales and half of all R&D
- When it comes to Canadian aerospace exports, almost two-thirds are for supply chain components compared to only one-third for final products
- In the last five years, maintenance, repair, and overhaul (MRO) has increased by over 25% while manufacturing has contracted slightly
- The number of women in STEM aerospace manufacturing has doubled over the last five years and now comprise a quarter of STEM aerospace jobs
A fuller summary of the 20 page report can be found below.
Interested in Canadian aerospace opportunities? Check out our list of Canadian Aerospace Opportunities in 2018.
About AIAC and ISED's methodology
AIAC is a not-for-profit membership organization that consists of 150 leading Canadian aerospace companies. AIAC consulted with these 150 companies to validate the report's findings.
ISED is a federal agency that aims to improve the Canadian economy and conditions for investment. ISED is responsible for ensuring offset obligations are met. ISED used 2012 - 2017 data from Statistics Canada and private firms to develop the economic models, statistics, and analyses found in the report.
Canadian aerospace GDP and jobs have been increasing for the past 5 years - to $25 billion in GDP and 190,000 jobs in 2017
Despite slight declines in 2016 and 2017, there has been a generally positive 5-year growth in GDP (+6%) and jobs (+2%).
In 2017, aerospace revenues reached close to $29 billion and directly employed 85,600 Canadians.
75% of manufactured products in aerospace were exported in 2017
Canadian aerospace consists primarily of commercial - but is crucial for defense
The majority of sales in Canadian aerospace came from the commercial sector (86%), followed by the defence sector (12%), and with a small sliver coming from space systems (2%).
However, for overall defense activities, aerospace contributed more than 30% of sales and almost 50% of R&D.
Most aerospace manufacturing takes place in Central Canada while most MRO takes place in Western and Atlantic Canada
In the last five years, maintenance, repair, and overhaul (MRO) increased by over 25% while manufacturing contracted slightly.
Canada ranks among the top 3 countries in terms of civil aerospace production
Canada is ranked #1 for civil flight simulator production.
Canada is ranked #3 for civil aircraft production, which includes business aircrafts, regional aircrafts, large jets, general aviation, and helicopters
Canada is also ranked #3 for civil engine production, which includes turboprop engines, helicopter engines, and turbofan engine production. (In fact, Canada is #1 for turboprop engine and helicopter engine production specifically!)
Almost two-thirds of Canadian aerospace exports are supply chain components - compared to only one-third final products
In the last 15 years, the share of aerospace supply chain exports has increased by almost 50%
For Canadian aerospace exports, the largest category is aeroengines (36%), followed by airplanes, rotorcrafts, and spacecrafts (33%), avionics (9.5%), landing gear (6%), and simulators (4%). Other supply chain components make up the last 11% of Canadian aerospace exports.
STEM employment in aerospace manufacturing is almost three time the manufacturing average - with the number of women having doubled over the last five years
The number of women working in STEM occupations for aerospace manufacturing has doubled in the last five years - women now make up almost a quarter of STEM aerospace jobs.
Did you know that new gender and diversity plans are now in effect for both Canadian defense procurements and infrastructure projects? That means showing gender equality will positively impact your government bids.
Aerospace is the biggest driver of R&D among all Canadian manufacturing industries
In 2017, aerospace R&D totaled $1.7 billion. Aerospace manufacturing makes up over a quarter of all R&D among Canadian manufacturing - and is almost 7x higher in R&D intensity as the manufacturing average.
But Canadian aerospace doesn't do R&D alone - 70% of aerospace R&D involved partners
More than half of all aerospace R&D involved academic and/or supplier partners.
Almost half of all aerospace R&D involved government, customer, and/or other company partners.