The Aerospace Industry in Canada.

Transcription

1 The Aerospace Industry in. Opportunities for Swiss Companies. March 2012 osec.ch The Aerospace Industry in 1

2 Content Leader: Geoffrey S. L. Green, P.Eng. President, Pegasus Global Initiatives Swiss Business Hub uses primary, secondary sources and tertiary sources of information to produce a variety of reports on the Canadian market for small to medium sized Swiss enterprises. For further information on our services, please contact: Elias Bardouniotis, MSc, MBA Director Switzerland Trade and Investment Promotion Swiss Business Hub 154 University Avenue, Suite 601 Toronto, ON M5H 3Y9, Tel. : Fax : elias.bardouniotis@eda.admin.ch While this report is intended to provide an overview of this specific market and its opportunities at the time of its edition, each individual manufacturer, exporter or company may have to conduct their own analysis to get a better understanding of the possibilities and opportunities available to them. You are encouraged to explore and develop your opportunities based on research and in-depth analysis. Readers should take note that the Government of Switzerland does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations, associations, companies and individuals listed herein. Readers of this report should verify the accuracy and reliability of the information contained herein before making a business decision. Swiss Business Hub 2012 The Aerospace Industry in 2

3 The Aerospace Industry in. This article has been written to familiarize Swiss companies with the Canadian Aerospace industry and to examine opportunities for trade and investment with. The aerospace industry is very significant and is the fifth largest in the world after the United States, United Kingdom, France and Japan. The industry is comprised of many Canadian and multi-national companies. Companies such as Boeing, Pratt and Whitney, Textron, General Dynamics, ASCO and Thales have significant manufacturing capability in. The Canadian owned industry component is large with companies such as Bombardier Aerospace, Magellan, MDA, CAE, etc. The industry with annual sales of $23.8 Billion is not limited to these very large corporations. There is a supply chain in place to support the industry, whether in or other countries. This supply chain includes not only manufacturers, but also a very large Maintenance, Repair and Overhaul (MRO) capability that serves Canadian and International airlines and the military. The industry produces a broad variety of products and services. Table A shows the contribution by each group of products, in addition to the areas within these categories where the Canadian aerospace industry is recognized as a global leader. Table A. Product categorization. Categories of Production % of Production Products Produced for Global Markets Aircraft, Aircraft & Components 55 Regional and Business Aircraft Helicopters Landing gear systems Airframe structural assemblies Wing structure assemblies Maintenance, Repair & Overhaul (MRO) 16 Aircraft maintenance, repair and overhaul services Engine rebuilding and maintenance Aircraft Engines & Engine Parts 15 Gas turbine engines Avionics, Electro Systems 6 Power conversion and distribution systems Integrated electronic controls Environmental conditioning systems Air traffic control and management systems Aviation communication systems Simulation & Training 4 Flight simulators Space 2 Satellite technologies Other Products & Services 2 Miscellaneous The Aerospace Industry in 3

4 The industry is national and has representative companies from the Atlantic to the Pacific coasts. The main centres are, and Manitoba, but there are substantial manufacturing centres in the provinces of British Columbia, Alberta, Saskatchewan, Nova Scotia, New Brunswick and Prince Edward Island. Table B. Industry by province, showing clusters and areas of specialization. Province Number of Employees Sales Clusters Specializations Companies (000) $11.1 billion Aircraft, Aircraft Components Aircraft Engines & Engine Parts Avionics, Electro Systems Simulation & Training Space Other Products & Services $6.5 billion Aircraft, Aircraft Components Aircraft Engines & Engine Parts Avionics, Electro Systems Simulation & Training Space Other Products & Services Manitoba 27 5 $1.6 billion Aircraft Components MRO Alberta 20 6 $1.3 billion Avionics, Electro Systems (Defence) Space Science MRO Logistic Support to the Military British Columbia 16 5 $1.0 billion Aircraft Components MRO Regional aircraft Engines Engine Overhaul Simulation Helicopters Components Regional & Business aircraft Helicopters Components Electronic systems MRO Gas Turbine repair Composites and Structures Combat radio systems, defence system integrations MRO (Helicopter & Narrowbody) Unmanned Vehicle Systems (Integration and Development) Space Research MRO Components Composites Saskatchewan 5 1 $0.5 billion Space Space and Satellite Systems New Brunswick 13 1 $0.5 billion Aircraft Components Avionics, Electro Systems Components Nova Scotia 10 1 $0.5 billion Aircraft Components Aircraft Components Prince Edward Island 15 1 $0.3 billion Aircraft Components Components The Aerospace Industry in 4

5 Table C. Sales information by Product Type and Annual Investment and Research and Development. Highlights % of Production Canadian Dollars Export Revenue 100 $23.8 billion $19.3 billion Sales by Product Type Aircraft, Aircraft & Components Maintenance, Repair & Overhaul Aircraft Engines & Engine Parts Avionics, Electro Systems 55 $13.0 billion 16 $3.6 billion 15 $3.4 billion 6 $1.3 billion Simulation & Training 4 $1.0 billion Space 2 $.5 billion Other Products & Services 2 $1.0 billion Civil Sales 76 $18.2 billion Military Sales 24 $5.4 billion Investment in Capital Investment R & D Investment $1.3 billion $0.685 billion The Canadian aerospace industry serves the major international markets. The United States is the largest market because of geographic proximity, close trading ties and joint programs. Table D. Global markets served. United States Europe Asia South and Central America Middle East Africa/Oceania Percentage of Exports Canadian companies are represented in all the industry sectors. As can be seen below, there are a number of Prime Contractors in. Some of these companies produce a variety of aircraft from regional jets to business aircraft. Other companies manufacture helicopters, engines and simulation and training equipment. The Aerospace Industry in 5

6 Table E. Information on Prime Contractors Company Locations Specialization Ownership Website Bell Helicopter Textron Helicopters United States Boeing Manitoba Laminate panels United States Operations Ltd. Fairings Bombardier Aerospace Regional and Business Aircraft CAE Inc. Flight Simulators Training Nova Scotia Diamond Aircraft Industries Inc. Business Aircraft Austria Eurocopter Ltd. Helicopters Europe (EADS) Pratt & Whitney Engines United States Major Suppliers by Sector (Please note that this identifies some of the larger companies, and does not include Prime Contractors) Table F. Major Suppliers by Category, Location and Ownership. Sector Company Locations in Ownership Website Aircraft, Aircraft & Components ASCO Aerospace Inc. British Columbia Belgium Avcorp Industries Inc. British Columbia Goodrich United States Heroux-Devtek Magellan Aerospace Manitoba Messier Dowty France Maintenance, Aveos Fleet performance Inc. Manitoba Repair and British Columbia Overhaul (MRO) I.M.P. Group Ltd. Nova Scotia Kelowna Flight Craft Group British Columbia The Aerospace Industry in 6

7 Sector Company Locations in Ownership Website Maintenance, Standard Aero Manitoba United Arab Repair and British Columbia Emirates Overhaul Alberta (MRO) Vector Aerospace Inc. British Columbia Alberta Aircraft Engines & Engine Parts Liburdi Engineering Inc. Unison Industries United States Rolls Royce British Columbia United Kingdom Avionics, Esterline CMC Electronics United States Electro Systems General Dynamics United States New Brunswick Alberta L-3 Communications United States Lockheed Martin Nova Scotia United States Alberta Thales France British Columbia Simulation and Training Adacel Inc Atlantis International Systems Inc. Nova Scotia Kelowna Flight Craft Group British Columbia Manitoba Space MDA British Columbia Magellan Aerospace Manitoba Com Dev International EADS Inc. Europe Nova Scotia SED Systems Saskatchewan The Aerospace Industry in 7

8 As stated previously, the industry is represented in all industrial provinces. Further information on the provincial clusters is located below: : has the largest aerospace industry in. It is largely located in the Montreal area. Below are some key facts on the industry: 225 businesses, including nearly 20 principal contractors and equipment manufacturers and over 200 subcontractors and product manufacturers. Employment is 42,000 jobs. Annual growth rate of 8.5% over 24 years. Roughly 50% of s total sales. Over 80% of Québec production is exported. The strength of the Québec aerospace industry stems from the presence of several world-class prime contractors: Bell Helicopter Textron Bombardier Aerospace CAE Inc. Pratt & Whitney Rolls Royce The areas of expertise include: Commercial aircraft (regional and business) Helicopters Turbo-shaft and turbojet engines Flight simulators Avionics Landing gear Space systems Systems integration Montreal is also the site of more than ten aerospace research centers, including the Canadian Space Agency and the Aerospace Manufacturing Technology. : has the second largest aerospace industry in. The companies are located across Southern from Ottawa to Windsor. The companies employ in excess of 20,000 skilled workers and annual sales are $6.5 billion. The Aerospace Industry in 8

9 World-leading aerospace companies such as Bombardier Aerospace, Pratt & Whitney, Honeywell, L-3 Electronic Systems, Magellan and Northstar Aerospace are recognized globally for their strengths in aircraft parts manufacturing, aircraft systems development, and maintenance and overhaul and are located in the province. is a leading supplier of: Regional and business aircraft Unmanned aerial vehicles Small and medium turbine engines Commercial helicopters Aero structures Landing gear Environmental systems Electronic systems Western : Western is represented by British Columbia, Alberta, Saskatchewan and Manitoba. Manitoba: Manitoba is home to the largest aerospace cluster in Western and is a major centre for composite aircraft component manufacturing, aircraft structures and aircraft maintenance, repair and overhaul. Sales exceed $1.6 billion with an estimated 5,000 persons directly employed. Sector Capabilities Design, development, manufacture, & repair/overhaul of: - Composite aircraft components and assemblies - Engine components and accessories Repair and overhaul of: - Commercial aircraft - Advanced alloy turbine engines - Piston engines and accessories Precision machining and precision sheet metal fabrication of high strength metals and alloys Spacecraft and payload design and integration Sounding rocket design and integration Development of advanced strategic target systems Military pilot simulator and flight training The Aerospace Industry in 9

10 British Columbia: Aerospace companies in the Vancouver area benefit from their closeness to the Boeing plant in Seattle, Washington. The specializations within British Columbia s aerospace industry include: Design, manufacture, maintenance, repair and overhaul Advanced composite aircraft structures Remote sensing Satellite communication Robotics MRO Training Alberta: Alberta s thriving economy is home to 150 aerospace and aviation companies, employing over 6,000. Alberta strengths are in specialized niches of the industry: It is recognized for the following areas of expertise: Robotics and Unmanned Vehicle Systems (UVS) As part of the diversification and expansion of industry in Alberta, a strong Unmanned Vehicle Systems sector is emerging. This innovative niche is expected to grow tremendously in the coming years because of its wide-ranging applications for military and commercial uses. The industry is supported by the Canadian Centre for Unmanned Vehicles in Medicine Hat and by the Alberta technical institutes and universities. Because of a small population and open land, Alberta can provide test ranges and facilities, such as in Foremost. Defence Electronics Currently there are 12 Alberta firms in this sub-sector, employing approximately 1,200 highly qualified and skilled people. Sales are over $264 Million, 60% of which are exported. Companies manufacture and provide maintenance for Canadian and foreign militaries in these areas: secure tactical communications systems, software, specialized sensors and other components in military applications. The Aerospace Industry in 10

11 Products include: Avionics navigation systems Control systems Global positioning systems Systems integration Space Sciences and Aerospace Geometrics Alberta has over 25% of s geometrics, navigation and positioning firms, which accounts for $200 million in sales. 75% is exported to the United States and Europe. The research done through Alberta s university is world-class and is funded by the federal and provincial governments. MRO Alberta-based companies provide maintenance, repair, overhaul and modification of both military and commercial aircraft, including: avionics; airframes; engines; equipment and component parts; interior refurbishment; and, aircraft painting. Logistical Support to the Military With four large military bases in Alberta, the province s local communities are increasingly answering the military s local procurement needs, while on a nationalscale; the province s industry is collaborating to enter the supply chain on largerscale capital procurement projects. Eastern : Eastern is represented by New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador. New Brunswick: The aerospace industry is located in Fredericton and Moncton. Areas of specialization include: Aerospace design Advanced composites Communication research The Aerospace Industry in 11

12 Nova Scotia: The aerospace industry is located in Halifax. Areas of specialization include: Composites fabrication Electronic assemblies Engine manufacturing Prince Edward Island: The aerospace industry is located in Charlottetown. Areas of specialization include: MRO Engine coatings Airplane interiors Precision components Newfoundland and Labrador: Areas of specialization include: MRO Systems integration Communications systems Summary It can be seen that the aerospace industry is a nationally located industry. It is an innovative and sophisticated industry that is world-class. As a result, the industry is a global force in a very competitive global industry and is recognized for its excellence. The Aerospace Industry in 12

13 The Canadian aerospace industry s success has been developed through a combination of factors including: Using world-class technology and materials. Investing heavily in machinery and equipment to ensure that costs are competitive or lower than other producers. An available educated and skilled work force. The development of global export markets. While the US market is one of the keys markets due to geographic closeness, joint programs, etc., there is global recognition of s aerospace capability. The development of a wide network of research institutes and Universities. Ongoing research being conducted within the industry. Company research activities are encouraged by a generous system of tax credits. Government support at all levels. Low corporate tax. Reduction and elimination of tariffs on all manufacturing inputs. Most were eliminated in 2010, but completion will be in Encouraging and supporting investment by international corporations to develop operations in. The industry is acknowledged as a technology leader for the products made. Companies work to a number of standards including ISO 9000 and AS9100. The industry continues to grow and it is anticipated that Canadian sales will reach over $30 Billion by The momentum of this industry offers many opportunities for Swiss companies, including the development of strategic alliances, direct investment and acquisition. More information is available through the websites listed below: Aerospace Industries Association of Aerospace Council Association oise de l aerospatiale Western Aerospace Association The Aerospace Industry in 13

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