SEIZING NEW HEIGHTS 10th ANNIVERSARY 2016 ACTIVITY REPORT Rapport d’activité 2016 QUÉBEC, A GLOBAL TABLE AEROSPACE HUB OF CONTENTS $14.4 B 80% 39,130 IN SALES OF QUÉBEC’S HIGHLY-SKILLED AEROSPACE PRODUCTION WORKERS IS EXPORTED 4 Message from the Chair 6 Message from the President QUÉBEC’S EXPORTS ST 8 Board of Directors 10 Branding and Promotion Working Group RANK 16 Market Development – SME Working Group 24 Aéro Montréal: 10 years of passion! 30 Supply Chain Working Group 205 52% 45% 34 Human Resources Working Group COMPANIES OF TOTAL OF CANADIAN AEROSPACE 4 OEMs CANADIAN AEROSPACE SECTOR JOBS Innovation Working Group 13 EQUIPMENT MANUFACTURERS SECTOR SALES 40 188 SPECIALIZED SUPPLIERS 44 Defence and National Security Working Group OF CANADIAN R&D 48 Governance MORE THAN INVESTMENTS IS 50 Mobilization and Contributions PERFORMED IN THE GREATER MONTRÉAL REGION 60 Calendar of Events 70% 62 Lexicon Source: MESI, 2016 2016 ACTIVITY REPORT 3 MESSAGE FROM THE CHAIR Aéro Montréal is a strategic think tank that groups all major decision makers in Québec’s aerospace sector, including companies, educational and research MEETING HÉLÈNE V. GAGNON institutions, as well as associations and unions. Vice President, Public Affairs and Global Communications THE CHALLENGES CAE OF THE FUTURE In 10 years, Aéro Montréal has become the recognized The Québec Aerospace Strategy, unveiled in May, Aéro Montréal has gained global credibility and recognition in 10 years with close voice of Québec’s aerospace industry on the national and champions one of Aéro Montréal’s major programs, to 20 collaboration agreements with international clusters and competitiveness international stages. Aéro Montréal is viewed as a world MACH FAB 4.0, which will support our SMEs in the transition hubs. This demonstrates how well the organization is reaching members benchmark for good reason: the organization has helped to Industry 4.0. Aéro Montréal published the “Propelling in Québec, Canada and around the world. The growing influence of the to make Québec the 3rd international capital of aerospace the talents of aerospace towards Industry 4.0” White Paper, Québec aerospace cluster has also led to an increasing interest by with Seattle and Toulouse. Aéro Montréal would not be the focusing on meeting companies’ workforce needs through specialized and business media in the organization and its members. strategic forum it is today without the vision, the boldness 4.0 skills development. The year 2017 will see increasing This enhanced visibility supports the business development and and the unwavering commitment of its early supporters. plant modernization and digitization, essential for exceptional capabilities of Québec companies of all sizes in companies in our sector. national and global markets. Collaboration and We are fortunate to have Suzanne M. Benoît as our internationalization are key success factors for the future president, who, from the founding of the organization In 2016, Aéro Montréal produced several briefs and of Québec’s aerospace industry. exactly 10 years ago, and in the years that have followed, supported the interests of its members, including has surrounded herself with exceptional talent. Passionate consultations on Canada’s Innovation Agenda and on In my second year as chair of the board of directors of people who have demonstrated their total commitment as the new Québec International Policy. Aéro Montréal shared Aéro Montréal, I am more convinced than ever that members of the team and of the board of directors as well the industry’s position on succession and workforce issues the Québec aerospace cluster will continue to as in our various working groups. Experienced people who with the Government of Québec in anticipation of the demonstrate its leadership in every way. Given have helped to build strong governance practices and « Rendez-vous national sur la main-d’œuvre » scheduled for the prospects for growth in global air traffic, developed a 2016-2018 Strategic Plan that is moving us 2017. The inclusion of cultural diversity and more women an accelerated digital shift, increased demand forward. I commend their dedication because this great in aerospace careers are among the priorities of Aéro for more eco-responsible aircraft, and a more team has been able to create promising projects that are Montréal. In this regard, our goal is to enhance the labour specialized workforce, Aéro Montréal is in an enabling Québec’s aerospace industry to pursue its future pool while our society is experiencing an inter-generational excellent position to pilot the industry in plans and enhance its influence and the excellence of its transformation. meeting the challenges of the future. products and services. The organization has supported innovation in all its forms. It is for them and for all of you, key players in Québec’s Whether technological, manufacturing or environmental, aerospace industry, that we so proudly celebrated our innovation plays a catalytic role for companies and research 10th anniversary year! centres. In a rapidly expanding global industry, Aéro Montréal’s vision of supporting the SA²GE greener aircraft The vision and boldness of Aéro Montréal are reflected project will lead to new niches of excellence in Québec in concretely in the strategic role played by the organization the next five to 10 years. in tackling the industry’s major challenges and developing solutions to increase the competitiveness and sustainability of our aerospace companies in Québec and internationally. 4 2016 ACTIVITY REPORT 5 MESSAGE FROM THE PRESIDENT I am very pleased to report on our accomplishments AEROSPACE, in 2016 and in our 10 years of existence. A SECTOR CREATING SUZANNE M. BENOÎT Strategy 2016-2026, the Government of Québec’s digital After 10 years, we are far from resting on our laurels. In the President SIGNIFICANT action plan, Québec’s International Policy, the Québec interest of continuous improvement, we are conducting a Export Strategy 2016-2020, and the Canadian governments’ major survey among members of the Québec aerospace Innovation Agenda. With the investment announcements industry. This will help us better prioritize our actions based WEALTH FOR for the second phase of the SA²GE greener aircraft project, on the needs they express. The results of the consultation the Government of Québec is acknowledging the relevance will be available in 2017 and allow us to update our strategic OUR SOCIETY of our programs to the strength of the cluster. plan for the coming years. In 2016, we raised our support for companies, especially In summary, 2016 was a pivotal year. Every building block SMEs, seeking to take the digital shift and increase their laid since the establishment of Aéro Montréal is providing presence internationally. The MACH Fab 4.0 program, us with a solid foundation – one that serves as a A review of the achievements of Aéro Montréal in 2016 As soon as the cluster was created, we set up working the launch of the 5th MACH cohort, the financial springboard for companies of all sizes and for thousands means looking back at an evolving, 10-year journey to groups dedicated not only to meeting the needs of Québec decision-making tool, and the “Propelling the talents of current and future workers. The Québec aerospace represent and support an industry subject to the ups and aerospace but above all to propelling the ingenuity and of aerospace towards industry 4.0” White Paper aim to cluster is now in a better position than ever to deploy downs of economic cycles. However, thanks to fundamental know-how of our ecosystem to the forefront. The programs increase the competitiveness of SMEs in global supply its innovative manufacturing capabilities. economic factors, an improved business climate, and and activities proposed by our six working groups are chains and ensure that they have the right financial investments in innovation and productivity, we can look demonstrating a multiplier effect in terms of productivity, levers and new 4.0 skills. I am fortunate to be surrounded by an at the impacts of the changes taking place in our industry excellence and competitiveness. In 2016, our six working experienced team that deserves much with optimism. groups helped our members make significant progress in I would be remiss if I did not mention the strong bonds of credit for the successes that Aéro these areas, both at home and internationally. trust that we enjoy with our partners in education at all Montréal is achieving through Economic, financial and research experts agree that, despite levels. They have thrown open their doors to allow us to the programs and activities the global economic downturn, the outlook for Canada is Our 10th anniversary celebrations opened with the hold activities aimed at fostering young talent. These range conceived and implemented strong. According to Consensus Economics1, Canada had “AéroPortail-Vitrines 2016” event in February and closed from the “Passion for flight” program for elementary and by our six working groups. one of the highest GDP growth rates of all G7 countries with the Seminar on Financing in December. In between, the high school students to the promotion of aerospace careers I’d like to thank them between 2012 and 2015. This situation should continue for year was marked by many successes and milestones. in collaboration with WIA organization. In the “Aerospace of wholeheartedly. the 2016-2018 period. The OECD agrees, estimating Canada’s All the events we held in 2016 provided an opportunity to tomorrow: Towards a 100% Recyclable Aircraft” case study economic growth at 2.3% in 20182. highlight our 10th anniversary and sharply increase our at the ÉTS, we saw how much young people can impress I now invite you to read visibility. Our companies and partners benefited from with their inventiveness and business acumen! Our SMEs about the achievements Several aerospace niches will act as key levers to boost the these efforts.