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Invest in Canada - Civil Aerospace

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Invest in Canada - Presentation on investing Canadian Aerospace Industry by Jeffrey Gray, Trade Commissioner with the Consulate General of Canada.

Invest in Canada - Presentation on investing Canadian Aerospace Industry by Jeffrey Gray, Trade Commissioner with the Consulate General of Canada.

Published in: Business, Technology

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  • 1. Click to edit Master title style Civil aerospace investment case Presented by: …. ………………….
  • 2. The Canadian civil aviation industry landscape 2
  • 3. Canada’s aerospace industry is a recognized global leader • • • • • 5th largest in the world: $22 B in annual revenues, over 80,000 employees Exports 80% of output Civil revenues 90% of total Complete tier coverage in regional and business aircraft, helicopters, gas turbine engines and landing gear Critical mass of diverse suppliers located in regional clusters – Regional clusters serve multiple market subsectors, reducing market risk in volatile times • Resilient through the fiscal and economic crisis • Network of national and regional industry associations • Headquarters of ICAO, IATA and Airports Council International 3
  • 4. Canada’s industry is a recognized global leader • Structured approach to industry-specific education and training – Regular consultations on industry needs and adjustments to delivery infrastructure – Contemporary collaborative R&D structures: – Supplier-customer linkage – University and government researchers and resources – Student research includes industry experience – Strong environmental focus – Substantial industry investments – Strategic subjects such as composite materials and health management • Longstanding industrial and regulatory integration with United States • Civil aviation focus: strong long-term growth forecasts – E.g. Boeing forecasts delivery of more than 33,000 new air transport aircraft in next 20 years 4
  • 5. Distinctive regional clusters Eastern provinces Québec Ontario Western provinces MDA – earth observation Avcorp – aerostructures Atlantic Turbines – gas turbine MRO Magellan Aerospace – airframe, space systems Standard Aero – engine MRO Asco Aerospace – aerostructures EADS Vector Aerospace– helicopter R&O Cascade Aerospace– airframe MRO Slemon Park - MRO cluster Boeing Canada – composites P&WC engines P&WC - engines P&WC - engines General Dynamics Canada – defence electronics Messier Bugatti Dowty, Goodrich – landing gears Magellan Aerospace – engine parts & R&O CAE, Mechtronix - training and simulation COM DEV – satellite payload subsystems Northstar Aerospace – gears and gear assemblies IMP – MRO Turbomeca Canada – Engine R&O Honeywell Canada – ECS, electrical power Thales – avionics Bell Helicopter – civil helicopters Bombardier – regional and business aircraft Héroux-Devtek – Landing gear CMC Electronics – Avionics Roll-Royce Canadaengine MRO GE Canada - Engine components 5
  • 6. The four regional clusters have world class capabilities • Eastern Canada New Brunswick, Newfoundland & Labrador, Nova Scotia, Prince Edward Island – – – – Defence systems in-service support Composite aerostructures Engine components Civil MRO cluster • Quebec – – – – – – – – Aircraft, helicopter and engine OEMs Flight simulation Modelling and simulation Avionics systems Large supplier base with many specializations Aircraft modifications and MRO Satellites and satellite subsystems Hub of international collaborative R&D 6
  • 7. The four regional clusters have world class capabilities • Ontario – Aircraft OEMs – – – – Landing gear and electrical integrators Aircraft and engine components: metal and composite Hub of Canadian space industry: robotics, applications Aircraft modifications and MRO • Western Canada Alberta, British Colombia, Manitoba, Saskatchewan – Composites materials and manufacturing • Manufacturing, inspection, repair – Aerostructures integration and manufacture – Unmanned Aircraft Systems (UAS) – Space applications • Remote sensing, geomatics – Helicopter MRO 7
  • 8. Globally connected industry Several of the foreign-owned MNEs have world product mandates Canada Japan United States Europe 8
  • 9. Recent high-value investments • • • • • • • Liebherr Group UTC/Pratt & Whitney (P&W) Latécoère/LATecis GE Canada & DAE Dornier Seaplane Company DEMA Aeronautics Rolls-Royce & P&W • Safran Group • • • • • Mitsubishi Heavy Industries Sumitomo Precision Products Thales Canada GE Aviation Ultra Electronics Landing gear Engine flight test and assembly Electrical systems Engine testing Amphibious flying boat Engineering, structural subassemblies Icing testing (GLACIER with NRC and MDS) Landing gear manufacture, composites R&D Aircraft structural subassemblies Aircraft systems Aircraft digital control systems Engine manufacturing, robotics centre Development of new tactical radio systems 9
  • 10. Government support and collaboration with industry 10
  • 11. Structured approach to meeting industry’s manpower needs • Regular national and regional industry consultations – Includes all employment categories: • Production, technician, technologist, engineer, scientist. • Canadian Council for Aviation and Aerospace (CCAA) is a dedicated national organization – Covers both manufacturing and MRO – Labour market information • Development and management of occupational standards • Training program curricula and accreditation • Supported by regional organizations with local focus – E.g. CAMAQ (Quebec), Ontario Aerospace Council (OAC) • Graduate and post graduate research and work experience embedded in collaborative R&D programs • Regionally-tailored youth outreach programs 11
  • 12. Large number of industry-specific education and training establishments • Distributed across the country: responding to regional needs – Around 200 graduates each year from aerospace engineering programs and around 2,000 students enrolled in 2010 and 2011 • Ten universities with aerospace focus – Aerospace engineering and mechanical engineering with aerospace specialization – Formal linkages between teaching, research and industry internships • Graduates from technical college aerospace programs in 2011: West 485 Ontario 440 Quebec 475 East 100 Total 1500 • Complemented by non industry-specific technical programs followed by industry training – Electronics, NDT, machining, sheet metal, metallurgy, engineering • Industry-specific business and management courses • Skills upgrading and continuous education programs 12
  • 13. Coordinated support for innovation: infrastructure and strategies • Government laboratories and researchers with broad coverage – National Research Council (NRC) Institute for Aerospace Research • Aerodynamics, flight research, Structures and materials, propulsion, aerospace manufacturing – NRC Industrial Materials Institute (IMI) • Includes materials processing, non-destructive testing • Technology insertion roadmaps – Industry Canada/NRC and industry – E. g. Composites, coatings, cabin interiors, health management • Future Major Platforms Initiative – Industry-government joint activity to identify key capabilities and technologies required for future aircraft platforms • Networks of Centres of Excellence – Linking university researchers with private, government and not-for-profit sectors • MITACS, a federally funded not-for-profit research organization – Domestic and international research internship programs 13
  • 14. Comprehensive support for innovation: support programs • Comprehensive set of support programs for all segments of the industry Program Strategic Aerospace and Defence Initiative (SADI) Industrial Research Assistance Program (IRAP) Managed by Industry Canada National Research Council Scientific Research and Canada Revenue Agency Experimental Development (SR&ED) Natural Sciences and Engineering Industry Canada Research Council (NSERC) Foreign Affairs and International Export marketing support Trade Canada (DFAIT) Export Development Canada (EDC) Canadian Commercial Corporation (CCC) • Crown Corporation reporting through DFAIT Crown Corporation reporting through DFAIT Purpose Repayable contributions to Canadian aerospace and defence companies Innovation assistance for SMEs. Includes advisory services, funding for innovation, networking and youth employment Income tax credits and refunds for expenditures on eligible R&D activity in Canada Funding for university researchers A range of advisory services and programs for industry Export credit agency. Financial services and small business solutions to Canadian companies. Support to Canadian direct investment abroad and investment into Canada. International contracting and procurement agency Complemented by Provincial support programs customized to regional needs 14
  • 15. Collaborative R&D initiatives • Focus on: – Civil aviation; economics and environment – More efficient processes for high value activities – International collaboration • Green Aircraft Research and Development Network (GARDN) – Business-led network of centres of excellence – Collaborative R&D projects focussed on environment – Recent MOU with Air Transport Advisory Group (ATAG) • CRIAQ – Based in Quebec, includes researchers from across Canada – Collaborative R&D, embedded training and supply chain matching – International collaborations • Composites Innovation Centre (CIC) – Based in Manitoba, collaborative R&D – Manages Canadian Composites Manufacturing R&D (CCMRD) • • Composites Research Network: Based in British Columbia CANNAPE: Increase engagement between Canadian and EU aeronautics R&D communities 15
  • 16. Maintenance, Repair and Overhaul (MRO) Maintenance, Repair and Overhaul (MRO)) 16
  • 17. Canada’s industry is large and diverse • $5.5 B revenues: 20% of total Canadian industry (civil and military) • Key strengths include: – Gas turbine engine MRO (all types and thrust ranges) – Business and regional aircraft MRO and modifications • Interior refurbishments and reconfigurations • Special mission modifications – Helicopter MRO and modifications – Landing gear MRO • Privileged access to U.S. market – Longstanding industrial relationship – High level of harmonisation in bilateral aviation safety agreement • Internationally respected safety and quality regime • Large fleets of helicopters and business aircraft – Second largest helicopter fleet in the “Western world” after USA 17
  • 18. MRO capability is distributed across the country • East: • Quebec: • Ontario: • West: Civil cluster: airframe, engines and engine components Airframe, business aircraft MRO and modifications, landing gear, engines Airframe, landing gear, special mission modifications, components Gas turbine engine, narrowbody airframe, helicopter GLACIER engine testing facility in Manitoba. RollsRoyce, P&W, NRC and MDS Canada specializes in regional and business aircraft MRO and modification 18
  • 19. A selection of Canadian MRO companies Area Business and regional aircraft airframe maintenance Narrowbody airliner airframe maintenance Selection of companies Premier Aviation, Jazz Aviation, Innotech Aviation, Discovery Air, Avmax, Skyservice Premier Aviation, Cascade Aerospace, Kelowna Flightcraft, Air Canada, Westjet Gas turbine engine MRO P&WC, Rolls-Royce Canada, Safran-Turbomeca, Standard Aero, EADS-Vector Aerospace, MTU Maintenance Canada, Magella-Orenda, CHC-Helipro, MDS Aero Support Landing gear MRO Business and regional aircraft interiors and special mission modifications Helicopter MRO and modification Component MRO Goodrich, Héroux-Devtek, Safran/Messier-Bugatti-Dowty Field Aviation, Innotech Aviation, Flying Colours, Tronos, Goderich Aerospace EADS-Vector Aerospace, CHC-Helipro, Bell Helicopter Textron Canada, Discovery Air Honeywell, L-3 CMRO, Avianor, Avcorp-Comtek, Navhouse Canada, Goodrich, Precision Heliparts Technical training CAE, Mechtronix, NGRAIN, Appendix/Eduplus, Simgraph IT-based Infrastructure AV&R Vision & Robotics, Creaform, Mxi Technologies, Boeing/Aeroinfo, AMS/Flygt, Star Navigation, Appendix/Sonovision This list is representative only 19
  • 20. Canada’s space industry 20
  • 21. Canada has several globally-competitive capabilities • Robotics and vision systems – Canadarm/ISS – Planetary exploration • Satellites and their subsystems – Telecommunications payloads – “Smallsats” • Radar-based earth observation – Radarsat family • Value-added downstream services – Earth observation – Geomatics – Telecom services 21
  • 22. A selection of Canadian space organizations • Canadian Space Agency (CSA): – Manages national space priorities with other departments – Supports industrial development and competitiveness – Manages international relationships e.g. NASA, ESA, JAXA, ISRO • • • • • • • • MDA: Earth observation, satellites, antennas, robotics Telesat: Owner and operator of communications satellites ComDev: Satellite subsystems and components Neptec: Vision systems Magellan Aerospace: smallsats, solid propulsion, sounding rockets L-3 MAPPS: Modelling and simulation of space systems Honeywell –EMS: aircraft satcom systems Large number of world class SMEs in niche areas 22
  • 23. Canada is application rich • • • • • • • 2nd largest landmass in world Longest coastline in world Large Arctic territory and impact of global warming Low population density and remote communities Increasing demand for support to natural resources industry Defence needs: domestic and international joint operations Canada was early adopter of space-based applications – Mature applications environment – 3rd nation in space with Alouette 1 comms satellite – 1st domestic satcomm system (Anik, 1972) and direct to home satellites (Hermes, 1976) – Radarsat-1 was 1st fully operational SAR radar EO satellite 23
  • 24. Canada as an investment destination 24
  • 25. Canada is an ideal platform for an advanced aerospace industry • Ranked “Best Country for Business” of 134 countries in 2011 by Forbes Publishing • Excellent foundational education and training system – Canada has the highest % of individuals Aged 25-64 having attained PostSecondary Education in top 10 OECD Countries • Resilient and diversified economy – Canada ranks 1st in G7 in likelihood of economic prosperity in 2020 (Potential Prosperity Index) • World’s soundest banking system – Ranked first amongst 142 countries by World Economic Forum • Cost-competitive location: Leads the G-7 • Favourable business tax environment – Second lowest statutory corporate tax rate in the G-7 – Tax credits and accelerated deductions for R&D 25
  • 26. Canada is an ideal platform for an advanced aerospace industry • High quality of life and standard of living – Inclusiveness, diversity, safety, cost base – Canada ranks highest in the G-7 and second among the 34 OECD countries in overall living conditions and quality of life. – Highest public reputation ranking among 50 developed countries by Reputation Institute • Trust, Esteem, Admiration, Good feelings • Globally connected – – – – World class transportation and ICT infrastructure Multicultural population with extensive international linkages Strategic location for aerospace MNEs Suitable as hub for aerospace global value chains 26
  • 27. Canada is an ideal platform for an advanced aerospace industry • Duty free manufacturing tariff regime – Tariffs on all manufacturing inputs removed by 2015 • Accelerated (50%/straight line) depreciation schedule for manufacturing inputs • Access to NAFTA market – United States, Mexico Canada • Canada ranked 3rd in the G-7 and 14th in a 110-country study measuring innovation by Boston Consulting Group • Canada ranks first in the G-7 in terms of the availability of qualified engineers in its labour market. – IMD World Competitiveness Yearbook 27
  • 28. Canada is an innovative, internationally connected, export oriented, low risk choice for high value-added aeronautics and space industries 28

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