Aeronautics | What is Canada Waiting for to Protect our Industry?

Aeronautics | What is Canada Waiting for to Protect our Industry?

August 13, 2020
December 20, 2024
Nabil Saad, Senior business advisor

Thousands of Quebecers and Canadians have cancelled their travel plans due to the pandemic. It has also caused a significant decrease in global air traffic and a major disruption in the entire aeronautic sector; from tour operators to large prime contractors, including airlines and the OEMs and SMEs that are part of the supply chain.

In Canada where our industry represents 10% of the global supply chain, this disruption continues to have major economic impacts. The aeronautics industry with its 31 billion dollars in revenues contributed $25 billion to our national GDP with 213,000 jobs (2018). While Quebec and Ontario account for 81% of aerospace machining activities, 51% of aircraft maintenance, repairs and reconditioning activities take place in Western Canada and in the Maritimes. It is therefore a truly pan-Canadian industry, which generates quality, well-paying jobs from one ocean to the other.

It is also the country’s fourth-largest export industry after oil and gas, automobiles and refining. The aeronautic industry also represents a significant portion of our knowledge industry as it leads all other sectors in research and development with an intensity (calculated based on a R&D/GDP ratio) that is five times greater than the average of all manufacturing industries combined.

So, how can we explain the federal government’s silence before this industry whose structuring effects are among the most important within our economy, whose wealth creation is particularly significant and whose strategic attributes are decisive, especially with regard to national defence?
– Nabil Saad -

We simply cannot afford to collectively disregard a strategic industry that is facing an unprecedented crisis and that deserves recognition as a national champion, especially when the United States is coming to rescue of their aerospace industry with $60 billion and France and the European Union have released $40 million for that purpose.

One thing is sure, the aeronautic and aerospace industry will eventually recover. In fact, we expect that by 2023 the gradual resumption will reach the demand levels recorded in 2019. In the meantime, the industry needs the government’s assistance to support the numerous stakeholders and ensure they are well positioned during the recovery period.

This transitional assistance must be part of the first phase of a sectoral strategy with a long-term vision that allows Canada to maintain its role as a global leader in aeronautics.

It is important that the federal government make it a national priority in its economic policies and that it in invest in its development and success.

Today, Montreal is considered the world’s third aeronautic capital after Toulouse and Seattle. Interestingly enough, the United States and France and the European Union have come to the rescue of their respective industries. What is Canada waiting for to preserve our podium place within the aeronautics industry?

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