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Québec Aerospace Québec QUÉBEC AEROSPACE 2017 QUÉBEC AEROSPACE 2017 QUÉBEC AEROSPACE Regional Hubs - OEMs - Supply Chain Providers Education - Advanced Manufacturing - R&D - Space Image courtesy of Pratt & Whitney Canada Dear Reader, In a constantly-evolving industry landscape, Québec’s aerospace sector prides itself on remaining at the cutting-edge of research and innovation, a key factor in the province’s international success. As a driving force of Québec’s economy, support of the sector remains paramount as a strategic area for development. The global landscape is constantly changing and aerospace hubs around the world must continue to adapt to compete. For this reason, Aero Montréal and the Québec government are investing heavily into Industry 4.0 technologies and supporting their implementation, particularly in SMEs. By fostering a more competitive supply chain, our industry will continue to thrive and maintain its global leadership position. Alongside our focus on the development of Québec’s existing aerospace ecosystem, we remain open for business and ready to support companies looking to relocate or establish subsidiaries in the region. Long favored by foreign companies as an entry point into the North American market, Québec’s operating environment is highly attractive and can cater to the needs of any aerospace company. We are indeed proud to present in the pages that follow some highlights of this industry, an economic linchpin and source of pride for Québec. Suzanne M. Benoît Dominique Anglade President, Minister of Economy, Aéro Montréal Science and Innovation, Government of Québec Arctic Ocean CONTENTS Global Business Reports Exclusive Editorial Opinion Interviews Analysis Survey Leading industry and GBR’s reporters provide government figures from unique insights into all aspects The results of GBR’s survey Québec’s aerospace of Québec’s aerospace value records market sentiment industry discuss market chain after months of research of Québec’s leading trends with GBR on the ground aerospace executives 12, 13, 14, 15 and 8, 38, 86, 116 and many more many more 138-139 N Introduction to 55. Interview with Alta Precision 105. Thoughts Québec’s Aerospace Industry 56. Interview with Mecaer America 106. Québec’s Aerospace 4: A solution to cost 57. Interview with Héroux-Devtek pressures 8. Introducing Québec’s aerospace ecosystem 58. Driving Change: Engine manufacturers prove 110. Interview with AV&R 11. Regional Map of Québec major proponents of R&D 111. Interview with Hypertherm Robotic Software 12. Interview with Québec’s Minister of 60. Interview with GE Aviation 112. Interviews with Buildit Software Solutions Economy, Science and Innovation 61. Interview with Rolls Royce Canada and with Radix 13. Interview with Aéro Montréal 62. Avionics: Facilitating safe flight 113. Thoughts 14. Interview with Fonds de Solidarité FTQ 64. Interview with Thales Canada 15. Interview with Investissement Québec 65. Interview with Rockwell Collins Canada 16. Québec’s Aerospace Cluster: A bird’s eye 66. Enhanced Experiences: Cabin interiors view 68. Interview with Innotech-Execaire Aviation Research and Development 18. Regional Profile: City of Laval Group 19. InterviewPacic with Economic Development, City 69. Interview with GAL Aerospace 116. Banding Together: Québec’s innovation of LavalOcean 70. Interview with F.List Canada ecosystem 4 20. Regional Profile: Agglomeration of Longueuil 71. Interview with Ingenio Aerospace 119. Interview with CRIAQ 21. Interview with Economic Development of the 72. Interview with GGI Solutions 120. Innovation Finds New Routes Agglomeration of Longueuil 73. Interviews with Astronics LSI and with Luxia 122. Interviews with Pratt & Whitney Canada 22. Regional Profile: City of Mirabel Innovation 123. Interview with Concordia University Québec 23. Regional Profile: Québec City 74. Driving Efficiency to Meet Competitiveness: 124. Interview with McGill University and with 24. Regional Profile: Sherbrooke Québec’s service and equipment providers MITACS & Polytechnique Montréal Canada 25. Regional Profile: Granby 76. Interview with Larecoere 125. Interview with University of Sherbrooke 26: The Big Four: Québec’s OEMs 77. Interview with PCM Innovation Group United States 28. Interview with Bombardier 78. Interview with P3 Group National Capital 29. Interview with Bell Helicopter Textron 79. Interview with Marinvent Province Capital Canada 80. Safety First: Optimizing inspection, testing License to Fly: 30. Interview with Pratt & Whitney Canada and maintenance measures Training Québec’s Workforce 31. Interview with CAE 82. Interview with Ansys NTI 32. Crossing Borders: Québec’s outward facing 83. Interview with CEL Aerospace 128. Developing the Talent Pool: Keeping up with aerospace supply chain demand 34. Factsheet 132. Interview with CAMAQ 133. Interview with TRU Simulation and Training Space From the Ground Up: 86. Punching Above its Weight: Québec’s Space Aircraft Building Blocks Industry The Future of Québec’s 87. Factsheet Aerospace Industry 38. A New Order: Québec’s supply chain reaches 90. Interview with Canadian Space Agency turning point 91. Interview with MDA 136. Québec’s Claim to Global Leadership 41. Thoughts 92. The Science of Light: Québec’s booming 138. GBR’s survey of Business Sentiment Saguenay 42. Table of Capabilities optics and photonics industry amongst Québec’s aerospace executives 44. Aircraft Building Blocks: From the foundry to 94. Interview with National Optics Institute 140. Final Thoughts final assembly 95. Interview with Space and Defense Systems, 142. Credits 45. Interviews with Sonaca Montréal and with ABB Québec Mecachrome 96. Interviews with MPB Communications and Atlantic 46. Interview with L3 Communications MAS with Nüvü Camēras Trois-Rivières Ocean 47. Interviews with Stelia Aerospace and with 97. Space: Québec’s new economic frontier Saint-Jérôme Avior Sherbrooke 48. Aircraft Building Blocks: Components and Montréal sub-assembly Ottawa 50. Interview with Arconic Titanium and Adapting to Change Engineered Products 51. Interview with TNM Anodizing and Paint 102. Aerospace in Québec: The case for an 52. Interview with Tekalia Aeronautik industrial policy 53. Actuation and Landing gear 104. Expert Opinion: 100% of Nothing 0 75 150 Kilometers 0 75 150 Miles Industry Explorations QUÉBEC AEROSPACE 2017 Global Business Reports Arctic Ocean Québec Aerospace 2017 Industry Explorations Global Business Reports This research has been conducted by Catherine Howe, Sorina Dumitru and Matthias Lomas Edited by Mungo Smith Graphic design by Gonzalo Da Cunha A Global Business Reports Publication. For updated industry news from our on-the-ground teams around the world, please visit our website at gbreports.com, subscribe to our newsletter by signing up to our VIP list through our website, or follow us on Twitter: @GBReports N Pacic Ocean Québec Canada United States National Capital Province Capital Saguenay Québec Atlantic Trois-Rivières Ocean Saint-Jérôme Sherbrooke Montréal Ottawa 0 75 150 Kilometers 0 75 150 Miles Image courtesy of Pratt & Whitney Canada GBR • Industry Explorations • QUÉBEC AEROSPACE 2017 INTRODUCTION TO QUÉBEC'S AEROSPACE “Aerospace is a key area of focus for economic development because it aligns with three main pillars that must be met for economic growth: entrepreneurship, advanced manufacturing and exports… For these reasons, the government has launched industrial strategies over the years to support the industry and has recently made unprecedented investments into developing the sector, particularly focusing on innovation.ˮ - Dominique Anglade, Minister of Economy, Science and Innovation, Government of Québec EDITORIAL Global Business Reports Introducing AEROSPACE INDUSTRY AT A GLANCE CANADA: ECONOMIC IMPACT Québec’s Source: AIAC contributed close to aerospace US$28 billion to GDP ecosystem and 208,000 jobs in the Canadian economy the industry directly generated US$27.2B in revenues over 87,000 in employment 8 and nearly US$13 billion in GDP QUÉBEC: SALES Québec holds a prominent position on the counts for 52% of the Canadian aerospace Source: Gouvernement du Québec international stage as one of the world’s industry’s total sales and is home to 70% average annual growth top three aerospace hubs alongside Se- of the country’s research and development in sales of attle and Toulouse. From as early as 1928, (R&D). when Pratt & Whitney Canada (P&WC) Situated in eastern Canada, the predomi- was founded to repair and overhaul Pratt nantly French-speaking province is ideally 5.2% & Whitney’s Wasp radial piston engines, located only a short distance from the bor- (1991-2016) Québec has been forging its path to the der of its largest export market, the United world-leading position it holds today. States. Alongside its favorable geographic total annual sales of Driven through the 1980s and beyond location, Québec’s retention of the French by Bombardier through its purchase of language and European flavor make it an Canadair and de Havilland Canada, the ideal choice for European companies to US$14.4 billion provinces’s aerospace industry today is access the North American market. The re- diverse, spanning the entire aerospace sup- gion’s international links are apparent both (2016) ply chain, with four prime contractors, ap- in the high number of exports–Québec ex- proximately 15 Tier-1 suppliers and rough- ports over 80% of aerospace production di- ly 200 small to medium-sized enterprises rectly or indirectly–and the high number of 52% (SMEs). subsidiaries that have been established in of Canadian
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