Canadian Aerospace Responsible for $42 Billion in Revenue, 170,000 Jobs

aiac
Ottawa, Ontario, June 11, 2013 (AIAC PR) –
The Aerospace Industries Association of Canada (AIAC), in partnership with Industry Canada, today released The State of the Aerospace Industry: 2013 Report, which contains updated data and analytics for the Canadian aerospace industry as of 2012. The report highlighted the economic significance of the sector, which is responsible for $42 billion of revenue and 170,000 jobs across industries in Canada, its leadership in research and development (R&D) and productivity, and its potential for growth in coming years.

“This data confirms yet again the critical role that aerospace continues to play in the Canadian economy, and will be very valuable as we work with the government on implementing the recommendations contained in the Emerson and Jenkins reports,” said Jim Quick, President and CEO of AIAC. “As a result of this fruitful partnership between AIAC and Industry Canada, we now possess important, up-to-date data about the industry that will help us better identify ways to strengthen our competitiveness and maintain the reputation for cutting edge work that distinguishes Canadian aerospace companies from their global competitors.”

“This collaboration between AIAC and Industry Canada shows a Canadian aerospace industry that is on the rise, is pushing technological frontiers and is increasingly globally connected,” said the Honourable Christian Paradis, Minister of Industry. Canada’s aerospace industry directly employs highly skilled workers, significantly contributes to GDP and is a leading investor in R&D. Our government understands the impact of this industry and its potential for growth and continued global leadership. We look forward to working with AIAC and the industry to see this success continue for years to come.”

The agreement between Industry Canada and AIAC is designed to leverage the respective strengths of each partner. Industry Canada developed detailed economic statistics, while AIAC consulted its members and network to identify key business drivers, issues and trends affecting aerospace companies operating in Canada today.

Key findings from the report include:

  • The Canadian aerospace industry is a strategic contributor to the Canadian economy in terms of innovation, employment, GDP and advanced manufacturing and service activities. In 2012, the Canadian aerospace industry contributed $27B to GDP and 170,000 full time employees to the Canadian economy. Although the majority of activity takes place in Ontario and Quebec, the industry’s footprint extends from coast to coast.
  • Aerospace leads the manufacturing sector in R&D intensity, devoting 20% of its activity to R&D compared to only 4% activity by manufacturing on average. However, when compared to other G7 countries, Canada’s R&D activity is in the middle of the pack.
  • Aerospace is also a leader in productivity growth: The value added (GDP) per employee in the aerospace manufacturing sector is more than 60% higher than total manufacturing and 80% higher than the total economy.
  • R&D investment, collaboration, supply chain participation and competition with emerging markets (e.g. productivity) are expected to drive and challenge the Canadian aerospace industry in the coming years.
  • The Canadian aerospace manufacturing sector is one of the most export intensive and export diversified of the Canadian economy. Nearly 80% of its products are exported, more than 45% of that amount destined for non-US countries.
  • More than two-thirds of the aerospace workforce in Canada qualifies as skilled labour, and the average salary for an aerospace worker is close to 40% higher than the total industry average. However, the needs of the Canadian aerospace industry talent pool are evolving and will require targeted occupations and investments in the years ahead.

To view the complete report, as well as other key statistics related to the aerospace industry, please visit www.aiac.ca/canadas-aerospace-industry/industry-statistics.

AIAC is the national association representing Canada’s aerospace manufacturing and services sector. As the world’s fifth-largest aerospace industry, Canada’s aerospace sector generates more than $22 billion, exports 80% of its output, and dedicates over 20% of its activity to research and development (R&D). Aerospace is responsible for the employment of 170,000 Canadians. AIAC represents the interests of over 700 aerospace companies across Canada.

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