WASHINGTON STATE DEPARTMENT OF COMMERCE
Ludovic Ortuno , Co-Founder & COO for CIDEP , shares some insights into the current environment and opportunities within the Canadian aerospace cluster for U . S . businesses .
Aerospace in Canada : A 31 Billion Dollar Industry
Canada is a global aerospace leader with more than 700 specialized companies , including Boeing Canada , Bombardier , Airbus Helicopters Canada , Esterline , CMC Electronics , Vector Aerospace , GE Canada and a vast MRO presence generating more than 31 billion dollars in annual revenues , positioning Canada as one of the top five export markets for U . S . aerospace goods .
The industry is mainly concentrated in Québec ( commercial / business aircraft , helicopters , ECS , engine , landing gear and MRO ), Ontario ( commercial and business aircraft , satellite-payload , space robotics , gear and gear assemblies ), and the Western Provinces ( aerostructures , defense electronics , engine MRO and small aircraft manufacturing ) — and is highly integrated with the U . S . aerospace supply chain with close to 60 percent of all Canadian aerospace imports coming from the U . S .
Post-COVID recovery
The COVID-19 pandemic has affected the aerospace industry , with airlines announcing drastic reductions in flights and job cuts . However , experts anticipate the full recovery of the sector in two to three years . There is a lot of optimism in Canada due to the strong financial government stimulus provided , which is expected to sustain Canada ’ s rank as a dominant global player .
What ’ s next with the A220 ?
Before COVID 19 , Bombardier Aerospace was the OEM with the capacity to build and assemble the entirety of its planes in Québec . Following the sale of its C-Series to Airbus and CRJ program to MHI , the company is solely focused on business jets , with a goal of reducing its cost structure and delivering between 100 to 200 jets a year . This transition has resulted in the acquisition of local players by Tier 1 and Tier 2 suppliers . As such , these “ new ” suppliers are now considered optimal points of contact for smaller U . S . suppliers seeking sales in the Canadian market .
For the past 35 years , Airbus has been establishing a strong presence from Nova Scotia to British Columbia and is expected to remain in Canada for the assembly of the A220 , which will be exported globally , including to U . S . customers . The current Airbus operations in Mirabel , QC include program management , engineering , support and customer service , as well as the main final assembly line of the program , working closely with the second line in Mobile , Alabama .
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DECEMBER 2020 | JANUARY 2021 ISSUE NO . 18 41