By Skies Magazine | June 15, 2023 Estimated reading time 4 minutes, 31 seconds.
Canada’s aerospace industry is making a strong recovery from the impacts of the Covid-19 pandemic, according to newly released data from the Aerospace Industries Association of Canada (AIAC) and Innovation, Science and Economic Development Canada (ISED). The two organizations have unveiled the latest State of Canada’s Aerospace Industry Report, which provides insights based on 2022 year-end data.
The report highlights significant progress in the sector, indicating that in 2022, the Canadian aerospace industry experienced growth in revenues, jobs, and GDP for the first time since 2019 when the pandemic began to affect the industry. This positive trend underscores the industry’s importance as a crucial contributor to the Canadian economy and a catalyst for innovation and research and development (R&D).
Of note, Canada’s aerospace industry continues to lead in R&D investments within the country, with an R&D intensity 2.3 times higher than the manufacturing average. Additionally, Canada remains a top-ranking country in civil flight simulator, civil engine, and civil aircraft sub-segments. According to AIAC and ISED, these accomplishments solidify Canada’s position as a global leader in the aerospace export market.
“I am delighted to see the industry bounce back as it is foundational to our country’s economy,” said the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry. “Our government will continue to support our aerospace industry to ensure Canada’s global leadership in the sector, grow our ecosystem, develop innovative technologies, and accelerate its transition towards a more sustainable aviation.”
Mike Mueller, president and CEO of AIAC, added: “We are pleased to see that the effects of the pandemic are slowly being reversed with revenues, jobs, and GDP rebounding. That being said, Canada must not take anything for granted. While we continue to be leaders in R&D domestically, the spending devoted to innovation is declining. As our competitors are global, we need to reverse the trend. To do so, it’s critical that Canada has a comprehensive national aerospace strategy for the next 20 to 30 years, leading to greater investments, innovation, and capability.”
Key findings from the report include an increase in aerospace manufacturing revenues, jobs, and GDP between 2021 and 2022, signifying the industry’s recovery from pandemic impacts. In 2022 alone, the Canadian aerospace industry contributed nearly $27 billion to the country’s GDP and provided over 212,000 jobs. During the same period, the industry’s contribution to the Canadian economy grew by $1.8 billion in GDP and 14,400 jobs.
The report notes that despite a decline in R&D expenditures, the Canadian aerospace industry maintained its top ranking for R&D among all manufacturing industries in the country. Additionally, the industry actively participated in global supply chains, with over 80 percent of aerospace manufacturing revenues being export-oriented — of which more than 60 percent were supply chain-related.
These positive trends in the sector not only signify a rebound from the pandemic, but also underline the significance of the aerospace industry as a driving force behind Canada’s economic growth, innovation, and global competitiveness, AIAC and ISED said.
