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Aerospace Sector Analysis and Action Plan Final Report

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Aerospace Sector Analysis and Action Plan Final Report Aerospace Sector Analysis and Action Plan Final Report Town of Gravenhurst, ON (Economic Development Division) January 22, 2019 Notice of Confidentiality The content of the present report is private and confidential and cannot be reproduced, in full or in part, except with the consent of Explorer Solutions. The recipient promises to preserve the confidential nature of the information contained in the present document and will take all necessary actions to prevent non-authorized copying, divulgation or transmission, in part or in full, of this information to unintended parties. The recipient also promises not to use, modify, translate, adapt, convert or exploit the content of the present document, and not to permit access to competitors of Explorer Solutions, without written consent from Explorer Solutions. 55 Northfield Drive East, Suite 344 Waterloo, Ontario N2K 3T6 ii Table of Contents Executive Summary ................................................................................................................ 1 1. Introduction .................................................................................................................... 7 1.1 Project Understanding ............................................................................................ 7 1.2 Summary of Past Studies ....................................................................................... 8 2. Regional Assets and Supply Chain Analysis ............................................................. 18 2.1 Assets .................................................................................................................. 18 2.1.1 Transportation Networks ............................................................................ 18 2.1.2 Post-Secondary Institutions ........................................................................ 19 2.1.3 Research and Development ....................................................................... 23 2.1.4 Muskoka Airport ......................................................................................... 24 2.2 Supply Chain Analysis .......................................................................................... 25 2.3 SWOT Competitive Analysis ................................................................................. 26 2.3.1 Strengths.................................................................................................... 26 2.3.2 Weaknesses .............................................................................................. 27 2.3.3 Opportunities (Obtained from Consultations) .............................................. 27 2.3.4 Threats (Obtained from Consultations) ....................................................... 29 3. Summary of Consultations ......................................................................................... 29 3.1 Focus Groups ....................................................................................................... 29 3.2 One-on-One Interviews......................................................................................... 33 4. Aerospace Market Analysis ........................................................................................ 34 4.1 Portrait of the Market ............................................................................................ 34 4.1.1 Ontario Market ........................................................................................... 34 4.1.1.1 Market Size ................................................................................... 34 4.1.2 Main Products and Services ....................................................................... 36 4.1.3 Research and Development ....................................................................... 37 4.1.4 Ontario Main Aerospace Cluster – Downsview Aerospace Innovation and Research Consortium (DAIR) ..................................................................... 39 4.1.5 Training Organizations and Main Programs ............................................... 39 4.1.6 Financial Programs and Incentives............................................................. 40 4.1.7 Events ........................................................................................................ 43 4.2 Canadian Market .................................................................................................. 44 4.2.1 Market Size ................................................................................................ 44 4.2.2 Research and Development ....................................................................... 46 4.2.3 Unique Projects .......................................................................................... 48 4.3 World Market ........................................................................................................ 48 4.3.1 Aerospace Market Outlook ......................................................................... 48 4.3.2 World Leading Companies in Aerospace and Defense............................... 49 4.3.3 The US Market ........................................................................................... 51 iii 4.3.4 The North American MRO Market Outlook ................................................. 52 4.3.5 Countries Competitiveness ........................................................................ 55 5. Trends and Technologies Impact ............................................................................... 56 5.1 New Technological Environment .......................................................................... 56 5.2 State-of-the-Art Technologies ............................................................................... 57 5.2.1 Advanced Composites ............................................................................... 57 5.2.2 Aluminum-Lithium Material ......................................................................... 59 5.2.3 Fly-by-Wire ................................................................................................. 59 5.2.4 Strategic Partnerships ................................................................................ 60 5.3 Technology Serving MRO Service Centres ........................................................... 60 5.3.1 Additive Manufacturing ............................................................................... 60 5.3.2 Collaborative Inspection Tools ................................................................... 60 5.3.3 Advanced Visual Inspection - Video Inspection Endoscope (3D) ................ 61 5.3.4 3D Computed Tomography (CT) ................................................................ 61 5.3.5 Virtual Robotized Inspection Systems ........................................................ 61 5.3.6 Use of Remotely Piloted Aerial Systems (RPAS) for Automated Inspections ...62 5.3.7 Use of Radio Frequency Identification in the Inspection Process ............... 63 5.3.8 Training Through Augmented Reality Technology ...................................... 63 5.3.9 Internet of Things (IoT) and Aircraft Installed Sensors ................................ 64 5.4 Aerospace Industry Clusters – A Developing Trend .............................................. 64 5.4.1 Hamburg Aviation ....................................................................................... 64 5.4.2 Mobile Aeroplex (Alabama) ........................................................................ 65 6. Regulations Impacting the Industry ........................................................................... 65 7. Market 20-Year Forecast ............................................................................................. 66 7.1 Global Outlook ...................................................................................................... 66 7.2 Canadian Outlook ................................................................................................. 67 7.3 Ontario Outlook .................................................................................................... 68 8. Sub-Sector Analysis and Identification ...................................................................... 68 8.1 Aviation Maintenance and Modifications Cluster ................................................... 68 8.1.1 Value Proposition ....................................................................................... 71 8.1.2 Key Messaging .......................................................................................... 71 8.1.3 Cluster Branding ........................................................................................ 72 8.1.4 Cluster Advisory Committee ....................................................................... 72 8.1.5 Commercial Office ...................................................................................... 72 8.1.5.1 Commercial Office ......................................................................... 72 8.1.5.2 Dedicated Staff ............................................................................. 73 8.1.6 Workforce................................................................................................... 73 8.1.7 Validation Workshop .................................................................................. 74 8.2 Incubation and Technologies ................................................................................ 74 iv 9. Business Attraction Strategy ...................................................................................... 77 9.1 Ambassadors
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