Canadian Aerospace Industry Posts Increased Revenues for the 4th consecutive year, yet long-term challenges remain

August 13, 2008

Ottawa, ON – The Aerospace Industries Association of Canada (AIAC) today released performance results for Canada’s aerospace industry in 2007:

  • Revenues increased slightly from $22.1 billion in 2006 to $22.7 billion in 2007;
  • Aircraft, aircraft parts and components remained the largest segment of revenues totaling $12.5 billion (55% of overall revenues);
  • Direct industry employment in 2007 was 82,000, up from 79,000 in 2006;
  • Export sales in 2007 generated $18.6 billion (82% of total industry revenue) while domestic sales totaled $4.1 billion;
  • Despite a slight decrease, the United States remained the most important market for Canadian aerospace goods and services, accounting for sales of $12.6 billion in 2007 (68% of total sales); European customers generated increased sales totaling $4.1 billion (22% of total sales) compared to 20% the previous year;
  • Canada continues to focus on expanding opportunities in the fast growing Asian and Eastern European markets where Canada’s market share has shown promising growth over the past years;
  • Sales to defence customers increased to 22% ($5.0 billion) of total sales in 2007, up from 18% in 2006;
  • Expenditures on aerospace research and development remained stable at $1.2 billion (75% of total investment) in 2007.

“Canada’s continuing strong performance in global aerospace markets shows that the innovative, cost-effective and proven technologies and services Canadian aerospace companies develop are in demand,” says Lajeunesse. “This success is not only good for our industry, but for communities across Canada where our companies operate”.

Despite Canada’s strong performance, serious long-term challenges are confronting the industry. For example, while the rising cost of jet fuel is having a negative impact on many airlines and their profitability. The upside, however, is this is presenting new opportunities for Canadian companies developing more fuel efficient products.

A second challenge is research and development. Building on the capacity of Canadian firms to increase R&D expenditures in strategic technologies is critical for the Canadian aerospace industry to position itself on future major platforms. “R&D is the key to creating new leading-edge aerospace products and services, and keeping us globally competitive,” Dr. Lajeunesse.

Human resources are the industry’s third challenge. There is a shortage in skilled workforce for certain specific occupations in the Canadian aerospace industry, at a time when baby boomers are facing retirement. “AIAC is reaching out to universities and colleges to help promote the exciting and well-paying opportunities for graduates coming into aerospace,” says Dr. Lajeunesse.

AIAC is the national trade association of Canada’s aerospace manufacturing and service sector - the fourth largest aerospace industry in the world. The Association represents the interests of 400 companies, in all regions of the country.

For further information contact:

Maryse Harvey
Vice-President Public Affairs
Aerospace Industries Association of Canada
(613) 232-4297
mharvey@aiac.ca