Canadian Industry Overview

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• Canada - innovative, competitive and growing
• Our capabilities
• Our business environment
• Our emphasis on innovation
• A Magnet for Capital and Entrepreneurs

Canada - innovative, competitive and growing

• A skilled workforce.

• Strong economic fundamentals.

• A total and ongoing commitment to research and development.

Call them the Canadian Advantage. Three key reasons why Canada's aerospace and defence industry is recognized around the world for producing world-class products and services. Three reasons to make Canada your first choice for trade and investment opportunities.

The numbers speak for themselves:

Canada's share of world production has doubled in less than a decade and we're home to more than 700 aerospace and defence firms, employing nearly 80,000 skilled employees. Of the over $16 billion US in aerospace and defence goods produced in Canada every year, more than 77 per cent or $12 billion US are shipped to markets around the world and the numbers continue to grow.

Today, only the United States, France and United Kingdom exceed Canada in aerospace and defence production. Our industry is comparative in size and scope, to Germany and Japan and we won't stable there.

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Our capabilities

Canada posses a wide range of superior aerospace and defence expertise. For example:

• We are a world leader in the design and production of regional aircraft, landing gears, small engines, and simulators for aircraft and naval applications.

• We enjoy a similar success in the production of civil helicopters, air frames and environmental control systems.

• Canada is also widely recognized for its expertise in light armoured vehicles, ship control systems and the increasingly important security products industry.

• Not only does Canada produce world class aerospace and defence products, but we have an exceptional capability in maintenance, repair and overhaul.

• Canada's defence electronics sector has expertise in the development of radio communications, surveillance and navigation system engineering and associated software.

• In space, Canada is a global leader in robotics, high-speed interactive satellite communications and remote sensing technologies. Canadarm 2 is absolutely critical to the construction and use of the International Space Station.

• And Canadian expertise in aerospace and defence isn't limited to large corporations. A growing number of small- and medium-sized businesses in Canada have unique capabilities in composites, coatings, and component system design.

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Our business environment

Critical to Canada's growing success in aerospace and defence is our dynamic and competitive business environment for advancing technology industries. For example:

• Canada has easy access to the lucrative North American market through its membership in NAFTA and other related trade arrangements.

• According to KPMG, Canada's business costs are the lowest of all G-7 countries and more than 9 per cent lower than the United States. In addition, our corporate tax rates are not only competitive, they will decrease.

• Canada's labour costs are significantly lower than those of the United States. In fact, for knowledge workers, wage costs can be up to 24 per cent less. Yet, our overall skill level, qualified worker availability and retention is among the highest of any country in the world.

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Our emphasis on innovation 

Canada's aerospace and defence industry is as committed to the future as it is to its clients. And we're backing up that commitment with action. For instance:

• In 2003, Canada's aerospace and defence industry invested over $750 million US in Research and Development and we are committed to achieving our goal of $1 billion US by 2010.

• We have a large and growing number of programs and institutions, such as the Institute for Aerospace Research and several defence research establishments, that assist and support innovation in the aerospace and defence sector.

• The Canadian government is helping to build the 21st century economy by developing policies and programs that will make Canada one of the most innovative countries in the world. Through our comprehensive R&D tax credit system, Canada is one of the most cost effective countries in which to conduct R&D. Furthermore, Technology Partnerships Canada advances and supports government initiatives by investing strategically in research, development and innovation in order to encourage private sector investment.

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A Magnet for Capital and Entrepreneurs

As if a favourable economic climate, skilled workforce and emphasis on research and development weren't enough, Canada is simply one of the best places in the world to live and do business. The Economist Intelligence Unit predicts Canada will be the best country in the world to do business between 2003 and 2008 because of our openness to foreign trade and great market opportunities.

Add an excellent technological infrastructure and the strong support of Canada's booming technology sector, it becomes clear why Canada's aerospace and defence industry is innovative, competitive and growing!

Thinking Aerospace? Thinking Defence?

Think Canada!

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Source: AIAC, KPMG 2004, Economist Intelligence Unit