Evolution of the Sector
Rod Jones Executive Director, OAC
1 } A proud history of ‘firsts’
} Where we are today
} Notable influences on the shape and dynamics of the sector
2 } “Silver Dart” – first powered flight in Canada - piloted by Toronto- born J.A.D. McCurdy. 1909 } Curtiss JN-4 Canuck - first airplane manufactured in Canada. Over 1,200 built. Toronto 1917 - 18 } World's first variable pitch propeller flight tested. Flight safety and economy greatly improved. 1927 } World's first anti-gravity suit tested at Camp Borden. Developed at University of Toronto. 1940 } de Havilland Beaver – World’s first successful short takeoff & landing airplane. Toronto 1947 } Avro C-102 Jetliner – First commercial jet transport to fly in Western hemisphere. Malton 1949 } CF-100 fighter – First front line fighter designed & built in Canada. Toronto 1950
3 } Orenda Engine - Canada's first turbojet engine. Most powerful engine of its time. Toronto 1950 } de Havilland Otter – Opening Canada’s north to commerce and industry. Toronto 1951 } Avro Arrow CF-105, supersonic, all-weather fighter plane, first flight. Considered most advanced jet interceptor in the world. Toronto 1958 } World's first emergency locator device built. Required today on all civil aircraft. Ottawa 1959 } Canadarm - world's first remote manipulator for space. Ottawa and Toronto 1972 } First elements of the Space Station Remote Manipulator System launched to begin assembly of the International Space Station, with Canadian Astronaut Chris Hadfield. 1999
4 Tiger Moth 1548 Avro Anson MkII 375 Mosquito 1133 Fox Moth 53 Chipmonk DHC-1 217 Beaver DHC-2 1692 Grumman Tracker 100 Otter DHC-3 466 Caribou DHC-4 307 Buffalo DHC-5 126 Twin Otter DHC-6 844 dash 7 DHC-7 113 dash 8 (series 100) 299 dash 8 (series 200) 94 dash 8 (series 300) 199 dash 8 (series 400) 98 Lear 45 wings 293 Global Express 150 Total 8107
5 } 2nd largest in Canada – Aircraft Systems & Equipment – Space Systems & Equipment – Aerostructures – Aircraft Integration – Defence – MRO } 22,000 people – most are technicians, engineers, scientists } $7 billion in revenues – ~ 80% exports – ~ 80% commercial
6 Ontario Aerospace Industry
• A technology-intensive, diversified cluster
• Focused on Systems & Equipment, Aerostructures and Aircraft Integration
• Rich and diverse industry / technology capabilities
• Strong supporting business / commercial infrastructure
• High calibre technical & business people
• Superior SR&ED tax credits
• Globally competitive
Ontario is the place to go for aerospace innovation and engineering excellence
7 Quebec Ontario
OEMs OEMs Tier 1 (Systems Integrators) Tier 1 (System Integrators)
Tier 2 (Equipment Providers) Tier 2 (Equipment Providers) Tier 3 (Sub-contract Suppliers) Tier 3 (Sub-contract Suppliers)
71,200 Direct, Indirect and Induced FTEs (2010) * 67,700 Direct, Indirect and Induced FTEs (2010) *
* Economic Impact of the Canadian Aerospace Industry Deloitte & Touche (2009) 8 Cluster Tier 1 Tier 2 Tier 3 Tier 4 Employees
Aerostructures 2 13 42 29 12,400
Landing Gear and Flight 4 13 19 18 9,000 Control Actuation
Avionics & Flight 2 24 12 3 5,500 Management
Turbine Engines 1 6 17 12 2,900
Environmental Conditioning 2 2 3 2 1,900 & Electric Power
MRO 7 10 11 2 7,200
Space 1 3 6 2 1,500
9 Regional Aircraft (RJ Family, Q Series) Bombardier Business Aircraft (Global Series) Bombardier Commercial Helicopters Bell Helicopter, Eurocopter Light Aircraft (Flight Training) Diamond Special Purpose Aircraft Bombardier, Field, Found Small and Medium Turbine Engines Pratt & Whitney Canada Aerostructures Arnprior Aerospace, Avcorp, Centra, Cyclone, Boeing, Magellan, Noranco, IMP Landing Gear Systems Goodrich, Heroux-Devtek, Messier-Bugatti-Dowty
Aircraft Environmental Systems Honeywell
Located in Ontario
10 Electric Power Systems Honeywell Aircraft Satcom Systems Esterline CMC, EMS (Honeywell) Air Traffic Control/Management Systems Raytheon Flight Simulators and Visual Systems Atlantis Systems, CAE Conversion / Upgrade / Retrofit Field, Cascade, Kelowna Integrated Space Robotics Systems MDA Robotics Satellite Multiplexers and Switches ComDev Satellite-aided SAR Systems EMS (Honeywell)
Located in Ontario
11 } When you fly Porter Airlines, your quiet, comfortable, fast and reliable trip is on a Bombardier Q400 aircraft designed and made in Downsview.
12 } When you are flying on a Boeing jetliner at 35,000 feet, the warm, clean air you breathe is thanks to Honeywell engineers in Mississauga.
13 } When you take off and land on a large airliner, 4 times in 10 it’s on landing gear made by Goodrich Landing Gear in Oakville or Messier-Dowty in Ajax.
14 } When you see the Canadarm robotic arm enabling astronauts to repair critical equipment on the outside of the Space Station, that’s done with space robotics technology developed by engineers at MDA in Brampton.
15 } Ontario’s strengths ◦ Integrated Systems and Equipment Aircraft & Space ◦ Aircraft Structural Assemblies ◦ Aircraft Integration
} A wide range of aerospace / aviation design, manufacturing, and product support capabilities } In the heart of Canada’s strongest and most diverse technology-based industrial and commercial business community
16 } 220 Member Companies – 200 Industry Members+ Associate members – 20 Affiliate members
} Established in 1993
} Leadership by Board of Directors
} OAC Core Purpose – To be the voice of the Ontario aerospace industry – To increase Ontario’s share of the global aerospace market
17 Todd Young, Brad Bourne, President & CEO Bill Reil, President V.P. Customer Services & Support Firan Technology Group Reil Industrial Enterprises Inc. Bombardier Commercial Aircraft Brian Teed, President Ted Squires, President Jim Butyniec, President & CEO Messier-Bugatti-Dowty Inc. TFI Aerospace Corporation Magellan Aerospace Ltd. Vincent Bourget, President & CEO Raymond Simmons, President Dan Breitman, Safran Electronics Canada Inc. CableTest Systems Inc. V.P., New Product Introduction Pratt & Whitney Canada Mark Waring, Vice President Tony Burgess, President Aero-safe Technologies TDM Technical Services Pierre Delestrade, President EADS Canada Inc. Tom Melvin, Vice President, Operations Joseph Yeremian, President Arnprior Aerospace Thermodyne Engineering Jean-Michel Comtois, V.P. Marketing & Sales David McIntyre, President SUSTAINING MEMBERS Esterline CMC Electronics Centra Industries Inc. Mahmood Nanji Assistant Deputy Minister, Economic Guy Joannes, President & CEO Peter Lidster, President Development Division, Eurocopter Canada Ltd. Exactatherm Limited Ontario Ministry of Economic Development & Innovation Frank Karakas, Ernie Lynch, President Vice President, Airbus & Bombardier Lynch Dynamics EX OFFICIO MEMBERS Goodrich Landing Gear Sharon Harrison Brad Hart, Division Manager Director, Aerospace - Aerospace, Defence Larry Fitzgerald, Metal Improvement Company Inc. and Marine Branch, Site Leader – Aerospace, Avionics Industry Canada Honeywell Canada EXECUTIVE DIRECTOR Rod Jones
18 } Aircraft manufacturers established here – Curtiss, de Havilland, Avro – } DPSA (1957) and DDSA (1961) = Free trade with US
} Systems companies located in Ontario – Menasco Goodrich – Dowty Messier-Dowty – AlliedSignal Honeywell – SPAR MDA – Comdev
19 } First formal sector collaboration – Aerospace Ministerial Advisory Committee 1992 Industry, Labour – OAC formed 1993 – Ontario Aerospace Strategy 1994 Strategic initiatives not funded
} OAC – Start-up funding from MEDT, transition to industry – Membership fees for basic operations (Board, AGM) – Virtual enterprise (no offices, no employees, 2 x ½ FTE) – Find funding for every project, event, activity
20 } OAC Initiatives/Projects – Employee Training & Development – Aerospace Industry Training Program – Program Management in Aerospace – Aerospace Executive Management Program
– Supplier Development – MAP – Machine/Tool/Die/Mould Diversification
21 } OAC Initiatives/Projects (cont’d) – Market Outreach – Major Airshows (Paris, Farnborough, NBAA, MRO, etc.) – AERO-Canada Capabilities Database – Ontario Aerospace Capability Directory – On the Wings of Innovation 2010
– Human Capital – Canadian Aerospace Labour Market Study – Ontario Supply Side Study – Canadian Aerospace Human Resources Strategy – Partnership with Air Cadet League of Canada
22 } OAC approach – Pros – Costs are low – Membership fees are low – Projects that get funded and proceed are clearly valuable
– Cons – Lack of continuity – Difficult to achieve sustainability – Valuable initiatives may not proceed due to lack of funding – No ongoing engagement among industry, education, R&D, labour, government
23 } Ontario assets – Education (engineers, technicians, business, etc.) – Other sectors – SR&ED tax credits
} Ontario Government Programs – AMIS – NGOJF
} Ontario Government Focus – Aerospace now one of 6 Strategic Sectors
24 } Summary – Strong cluster elements exist – Industry, education, R&TD, labour, finance, governments
– Incentives needed to bring them together
– Resources needed to enable ongoing collaboration
– Incentives and resources needed are modest
– Economic return is high
25 Ontario Aerospace Sector Taking Flight: Making an Ontario Aerospace Cluster a Reality
June 7, 2012
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