Aerospace opportunities in Canada

An Expert's View about Sales in Canada

Last updated: 19 Mar 2011

Canada is a major player in the world aerospace industry. It is a world leader in certain key aerospace market segments (such as regional jets, business jets and commercial helicopters) and niche technologies.

Sector briefing Aerospace opportunities in Canada Why Canada? Canada is a major player in the world aerospace industry. It is a world leader in certain key aerospace market segments (such as regional jets, business jets and commercial helicopters) and niche technologies. The Canadian aerospace sector is export dependent; about 80% of output is exported. It is the nation?s leading advanced technology exporter. Some of the industry?s small specialist companies lack the necessary resources to react quickly and competitively to today?s rapid market changes. Given Canada?s location, the business culture, potential opportunities and an Canadian industry holds a strong position introduction to other relevant issues. within the US aerospace market (the world?s largest market) thus offering an extra dimension to UK suppliers or partners. ?Canada?s aerospace sector is winging its way to a Along with the United States, Russia, Japan unprecedented profitability? and the European Space Agency, Canada is one of major partners in the International Space Station. Find genera l information on the Canadian market conditions on the UKTI Website. The Doing Business in Canada Guide for Canada gives an overview of Canada?s economy, UK Trade & Investment Sector briefing: Aerospace opportunities in Canada - Avionics, communications, power Opportunities conversion, environmental controls, in- th flight entertainment, and business Canada?s aerospace industry is the 4 largest solutions. in the world. Annual revenues totalled $22.1 - Maintenance/repair/overhaul of aircraft and (Cdn) billion in 2009. The Canadian industry major systems and aftermarket logistics comprises over 400 companies employing support. 78,000 employees directly. Civil applications - Space robotics, earth observation and of aerospace activity accounted for 84.3% communications satellites. ($18.7 billion) of total revenues, with remaining 15.7% ($3.5 billion) associated with Revenues per Subsector (in 2009) military applications. Aircraft, parts & $11B (49.6%) Canada's aerospace industry has several major components international firms, including Bell Helicopter MRO $4B (18.4% Textron, Boeing Canada, Bombardier, CAE, Engines & parts $3B (13.9%) CMC Electronics, GE Canada, Goodrich, Heroux Simulation/training $1.1B (5.1%) Devtek, Honeywell, L-3 Communications, Avionics $1B (4.7%) MacDonald Dettwiler, Magellan, Messier-Dowty, Pratt & Other $1B (4.7%) Whitney Canada, Rolls Royce Canada and Standard Aero. Like many industries, it is Space $795M (3.6%) highly concentrated, with the top 30 firms representing 95 percent of production. The aerospace industry is present in all Bombardier represents about 45 percent of the provinces of Canada, with key industry clusters industry's sales. Smaller companies, part of located in Montréal, Toronto and Winnipeg. the local and global supply chains, round out a The Montreal and Toronto areas contribute to significant domestic supply base. almost 90% of the revenue generated by the aerospace industry and engages 81% of its Bombardier is building the C Series, a new workforce. The industry also has a significant family of 110-149 seat aircraft. Leasing presence in British Columbia, Saskatchewan, companies are seen as the primary customers Alberta and the Atlantic region. for this new aircraft. As of July 2010, 90 firm and 90 potential orders were in place. Canada is a proven world leader, with a significant global share in most sub-sectors. Bombardier estimates global demand in the 100-to-149 seat market at 6,300 planes, half 20-90 seat regional aicraft 47% of which it hopes to capture, as aging fleets are Small gas turbine engines 34% replaced and the CSeries opens up new Commercial flight simulators 80% markets for its customers. The CSeries is on Visual simulation sector 70% track to enter service at the end of 2013. Commercial helicopters 14% Landing gear 31% The Canadian industry?s geographical location New large aircraft landing gear 60% allows Canadian companies greater access to Transport aircraft environmental 60% the US. The ability to penetrate this aerospace control & onboard systems market, the opportunities of which should not Key player in Joint Strike Fighter (F35) be underestimated, could be of further benefit for any potential UK partner or supplier seeking Space to do business in Canada or the US. The space sector continued to show growth in Canada possesses extraordinary world-class 2008 (latest figures available), with total capabilities such as: revenues reaching $2.79 billion and employing - Design and production of regional and 6,700 people in 200 companies. This business aircraft, helicopters, small gas represented an increase of 17.8% over 2007. turbine engines, flight simulation systems, landing gears. Export revenues represent 50% of total - Structural assemblies and components revenues, with $733M going to the US. incorporating advanced materials, including European market exports were $399M. composites, special coatings and alloys. UK Trade & Investment Sector briefing: Aerospace opportunities in Canada Ontario?s proportional share was 72.8% ($2.035B) of total revenues, followed by The Prairies (8.4%), Atlantic Canada (7.2%), Quebec (6.2%), and BC (5.4%). Amongst the space activities in Canada, the satellite communications sector continued to generate the lion?s share of the Canadian space sector?s revenues, as it represented 72% of the total space sector revenues with $2 billion in total revenues. Navigation grew to $254M, earth observation reached $200M, robotics increased to $110M, and space sciences decreased to $68M. The top ten highest earning space companies have shown real growth ranging from 12% to 48%. Along with the United States, Russia, Japan and the European Space Agency, Canada is one of five major partners in the International Space Station. Major players in the space industry in Canada include: Bristol Aerospace Limited, Canadian Space Agency, Com Dev International, MDA Corporation, Neptec Design Group, Optech Incorporated, and Telesat. If you have any questions on the opportunities above, contact the UKTI contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website. UK Trade & Investment Sector briefing: Aerospace opportunities in Canada Major events and activities UKTI contacts Quebec Aerospace Association (AQA) One Name Annual Congress Helen Hemmingsen Trade Officer Contact: Rose-Marie Cere British Consulate General, Toronto Email: Tel: (001) 416 593 1290 x2242 Time: September 2011 Email: Aerospace Industries Association of Canada (AIAC) Annual General Meeting and Conference Contact: Lynne Adamson Email: Time: October 2011 Ontario Aerospace Council (OAC) General Meeting Contact: Judy Duffy Email: Time: November 2011 Aeromart Montreal Time: April 2012 Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Aerospace opportunities in Canada Next steps - ? Arranging appointments How UKTI can help ? Organise seminars or other events for you to meet contacts and promote your British companies wishing to develop their company in the Canadian market business in the Canadian market are advised to undertake as much market research and This work is available via our Overseas Market planning as possible in the UK. UKTI?s team in Introduction Service (OMIS) a chargeable Canada, with its wide local knowledge and service which assists British-based companies experience, can provide a range of services to wishing to enter or expand their business in British-based companies wishing to grow their overseas markets. business in global markets. To find out more about commissioning this This can include: work, or accessing other UKTI services and ? Provision of market information specialist advice, please visit the UKTI website ? Validated lists of agents/distributors to find contact details for your local UKTI ? Key market players or potential office. customers in the Canadian market ? Establishment of interest of such contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: This publication is also available from our website at or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Aerospace opportunities in Canada
Posted: 19 March 2011, last updated 19 March 2011

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