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Aerospace industry positioned to double number of jobs
Oct. 26, 2010, Ottawa - A comprehensive report released today by
Deloitte and Touche shows that the Canadian aerospace industry is
well-positioned to double the number of high-paying and high-quality
jobs in Canada over the next ten years. The report was commissioned by
the Aerospace Industries Association of Canada (AIAC) and released today
at the Association's Annual General Meeting in Ottawa.
By Carey Fredericks
The document titled, The Strategic and Economic Impact of the Canadian
Aerospace Industry was presented to approximately 350 attendees
representing all segments of the Canadian aerospace industry and other
leading aerospace nations, various levels of government, as well as
members of the financial and investment community.
The report found that although Canada is in a good position to take full
advantage of global growth in the industry, greater support by
governments and investment in R&D remain critical factors for
ensuring Canada's overall competiveness as other countries are already
moving ahead and are in a better position to take advantage of emerging
"For Canada to maintain or strengthen its global leadership position in
aerospace, the private sector and governments must work more closely
together," said Marc Parent, Chairman of AIAC and President and CEO of
CAE Inc. "Canada needs a more integrated approach in order to take
advantage of global growth opportunities," he added.
The Canadian industry, based in Quebec, Ontario, Western and Atlantic
Canada, is regarded globally as amongst the best in world and enjoys a
high level of confidence from manufacturers from around the world.
However, as foreign governments are investing heavily in their domestic
industries and are developing supportive public policy to ensure their
growth, Canada is falling behind.
"While Canada's civil aviation sector is currently ranked third in the
world, we rank lowest in R&D funding when compared to our
traditional competitors,France and Germany," stated Claude Lajeunesse,
President of AIAC. "Emerging low-cost markets including China, India,
Brazil and Mexico are investing heavily in their sectors to prepare to
take advantage of the growth in new markets. Increased R&D will
enable the Canadian sector to move up the manufacturing value chain,
positioning the industry to compete for lucrative mandates requiring
knowledge-based jobs in Canada."
The report also outlined the fact that the Canadian industry is a key
driver of innovation, jobs and economic output accounting for nearly
80,000 jobs throughout the country with a payroll of more than $4.6
billion and expected revenues of more than $22 billion in 2010. A
sizeable but realizable investment in R&D would allow Canada to
double industry employment to 158,000 jobs by 2020.
"Emerging markets such as China and India are seeing their governments
heavily investing in our sector and establishing public policy to
significantly expand their position in the civil aerospace industry,
recognizing that Asia-Pacific will be the largest market for air
transport in the next 10 years," continued Mr. Parent. "We are
confident that the Canadian industry can continue to build on its solid
foundation with the federal and other governments to maintain Canada's
position as a world leader now and for the future."
The report concluded that Canada can maintain its place in an
increasingly competitive aerospace world, take full advantage of
emerging markets and greatly expand the number of high-paying and
high-quality jobs for Canadians, only if the Canadian aerospace industry
can reconfigure itself to capture this growth.