Ottawa, CANADA – A newly released report by the Aerospace Industries Association of Canada (AIAC) and Innovation, Science and Economic Development Canada (ISED) found that both the Canadian and the global aerospace defence sectors continued to grow in 2020, with defence activity representing 17 percent of total Canadian aerospace revenues.
According to the 2021 State of Canada’s Aerospace Industry Report, global defence aerospace revenues are forecasted to grow by over 45 percent in 2021-2025 which is good news for Canada as more than 90 percent of its aerospace manufacturing revenues in 2021 were export oriented.
The report also noted that the aerospace industry continues to rank first in R&D investments in Canada, with an R&D intensity 2.5 times higher than the manufacturing average. In terms of investment in 2021, the report found that the aerospace industry invested $710 million in R&D in 2021.
“Despite the impacts of the COVID-19 pandemic, Canada’s aerospace sector remains the most innovative manufacturing industry and a cornerstone of our economy. Our government has dedicated investments totaling $2 billion to help the aerospace sector recover. These investments will help the sector become more resilient, cleaner and greener, while supporting the creation and maintenance of jobs and growth for decades to come,” said the Honourable François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry.
The report also noted that the Canadian civil aerospace industry ranked #1 globally for flight simulators, #3 in engines and #4 in aircraft. More specifically, civil aerospace segments where Canada ranked well include turboprop engines, helicopter engines, turbofan engines, business jets, large jets, helicopters, and regional aircraft.
The aerospace industry represents about 21 percent ($1.37 billion) of the value of contracts signed by the Canadian Commercial Corporation (CCC) with government buyers around the world in the last 5 years. Emerging demand for Canada’s specialized aircraft by government buyers, supported by instruments like CCC’s government to government (G2G) contracting approach, is an opportunity for Canadian businesses to gain greater international market share.
“G2G contracting allows Canadian exporters to confidently enter new markets and grow international sales as their government buyers are essentially buying Canadian products and services from the Government of Canada through CCC which reduces their go-to-market risks,” said Mathieu Lacroix, Business Development Director at CCC.
Canada’s G2G contracting is also valued by government buyers. Since buyers are contracting directly with CCC, rather than the Canadian supplier, they have the assurance that the Canadian supplier has been vetted and is qualified to deliver the contract and also receive a guarantee of contract performance from the Government of Canada which significantly reduces their procurement risk.
If you are a Canadian business with an opportunity with a foreign government or you are government buyer looking to procure a Canadian aerospace solution, contact CCC to learn how the Government of Canada can support you.
Quick facts
- Government to government (G2G) contracts are agreements between government entities for the purchase of products, services, or solutions of public importance, such as the purchase of aircraft and associated maintenance, repair, and overhaul (MRO) and training services.
- CCC signs G2G contracts with national and subnational governments, as well as agencies and state-owned enterprises.
- CCC’s G2G service for the U.S. Department of Defence is called U.S. DoD Prime Contractor.
- International Prime Contractor is CCC’s G2G service for non-U.S. DoD contracts.
- A key differentiator of all CCC G2G contracts is a guarantee of contract performance from the Government of Canada.
- Between 2012 and 2022, CCC signed $23 billion worth of G2G contracts.
About CCC
We are Canada’s government to government contracting agency. We help build successful commercial relationships between Canadian businesses and governments around the world through our government to government contracting approach. We are also the Government of Canada’s designated contracting authority for U.S. DoD requirements from Canada. To learn more about how we have facilitated billions in trade between Canadian businesses and governments in over 30 countries, visit www.ccc.ca/en/.
