The president and CEO of Abbotsford’s Cascade Aerospace said last week that Canada needs a stronger aerospace strategy if it is to capitalize on global demand for 30,000 aircraft over the next 20 years.
Speaking at a February 16 Vancouver Board of Trade event, David Schellenberg, who is also vice-chairman of the Aerospace Industries Association of Canada (AIAC), said global demand for aircraft could potentially double the number of aerospace jobs in B.C. and across Canada by 2020.
But he said the sector needs help.
“Our industry is not looking for handouts, simply a coherent policy framework that will help to create a level playing field between Canada and our global competitors,” said Schellenberg. “Many of our competitors have enormous advantages as they build their capabilities.”
Canada is home to the world’s fifth largest aerospace industry, employing 80,000 people in 2009 and generating $22 billion in revenue that year.
Western Canada employs close to 14,000 people in the industry, including 5,000 British Columbians.
According to a recent Deloitte report, the Canadian aerospace industry produced $24.1 billion in revenue in 2010 and employed 82,956 people.
B.C. generates roughly $1.2 billion annually from aerospace.
Greater Vancouver, which is B.C.’s main aerospace cluster, benefits from its proximity to Boeing’s (NYSE:BA) home in Washington state.
The B.C. industry is also supported by one of Canada’s largest aerospace training centres at the British Columbia Institute of Technology.
But Schellenberg said existing and emerging aerospace countries are doing more to cultivate their sectors. He noted that Canada had the world’s fourth largest aerospace sector in 2007 before falling a spot.
Schellenberg added that Singapore, with a GDP about one-tenth of Canada’s, has become a global hub for high-tech maintenance, repair and overhaul because of its favourable business environment, flexible workforce and collaboration with government.
Meanwhile, the European Commission is providing funding to its aerospace industry to make green technology a priority.
China’s government has made investments to create a domestic aircraft manufacturer.
Its first commercial aircraft are scheduled for delivery later this year.
AIAC is touring the country to promote a strategy that includes a more effective research and development policy and an industrial plan for defence.
“Current research indicates we’re lagging in R&D,” said Schellenberg.
He added that such federal government programs as the strategic aerospace and defence initiative are important, but Canada needs to build on those programs.
A new R&D plan should include the development of “technology demonstrators” to position Canada’s industry on future new aircraft platforms.
Schellenberg said the country needs an industrial plan to address the acquisition and long-term sustainment of Canada’s growing defence fleets without having to send them to foreign companies for repair.
Schellenberg’s company depends on maintaining and supporting the Canadian Hercules C-130 fleet through its 50-plus-year lifespan.
He said Canada also needs policies to remove protectionism, the U.S.’s international traffic in arms regulations program and other export barriers.
“We weathered what was a dire global economic climate and emerged in a reasonable position,” said Schellenberg.
Schellenberg said 2010 was a much better year for Canadian aerospace than 2009.
“And the growth of emerging markets gives us reason to believe the future looks bright.”