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PARTNERSHIP WITH GOVERNMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Successful Advocacy in a Year of Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Supporting our Partners, Representing our Members:
Building and maintaining the relationships that matter
with elected officials and public servants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Transitioning Well:
Achieving industry objectives in a changing political climate . . . . . . . . . . . . . . . . . . 9
Getting Results:
Successful advocacy in a year of change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
BUILDING TOMORROW TODAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
AIAC’s 2016–2020 Strategic Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
DELIVERING RESULTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
AIAC Activities in 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
2015 CANADIAN AEROSPACE SUMMIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
OUR TEAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
Members of the Board, 2014–2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
AIAC Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
Message from the CEO & Chair . . . . . . . . . . . 3
Contents
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The last five years have contained several milestones for the Canadian aerospace industry. Beginning with the release of the 2010 Deloitte report on aerospace in Canada and followed by the review and implementation of the Emerson and Jenkins reports, important steps have been taken by both industry and government to create an environment which supports Canadian aerospace innovation, manufacturing, and business development both domestically and around the world.
Yet even as we have made important gains, the global aerospace industry continues to evolve and present new challenges and opportunities to Canadian firms . Supply chains are consolidating, requiring suppliers to take on more risk, volume and cost in order to compete . New markets are opening, introducing not only dramatic growth opportunities but also new national and industrial players seeking to develop their own aerospace capabilities .
Inside civil aviation, product life-cycles are shifting away from the design phase and towards delivery, and important new environmental regulations are making innovation and green technology more critical than ever . Within the defence industry, forecasts for global defence spending are mixed, while changing procurement processes and increased focus on aftermarket
activities are altering the way contracts are negotiated . And in the space industry, new innovations and business models are impacting the satellite sector, and a consensus is taking shape around the future of human space exploration in the decades ahead .
AIAC’s mandate is to ensure that our members are well-positioned to succeed in this dynamic, challenging global environment . While we are proud of the significant achievements we have reached over the last five years, we understand that there is still much more that can be done to ensure that Canadian aerospace continues to maintain its position as a leader within the global aerospace industry . This report highlights AIAC’s initiatives and achievements to fulfill that mandate in 2015 .
The association’s primary focus in 2015 was the federal election and the transition to a new government . Our relationship with government is a very important part of AIAC’s activities and overall strategy, and the federal election presented unique opportunities and challenges that required careful consideration . Thanks to a focused election strategy that we developed and implemented throughout the year, we enter 2016 well-positioned to continue working with both elected officials and public servants as a valued program and policy partner .
Message from the CEO & Chair
3A N N U A L R E P O R T 2 0 1 5
We also continued to deliver and improve our other activities and services to members . Our annual Canadian Aerospace Summit in November once again attracted a record number of attendees, including international delegations, and featured industry leaders as well as two recently-elected cabinet members . We continued to lead international trade missions and air show participation, host events, and work with members to support their business development objectives . In particular, we continue to see important progress on our efforts to develop the supply chain and accelerate the growth of small businesses – initiatives that will be essential to the long-term competitiveness of our industry .
As we look to the future, we are confident in Canada’s continued ability to maintain its position as a global aerospace leader . At the same time, however, we are also determined to continue pushing forward with the programs and initiatives that are required to make that vision happen . Thanks to our efforts in 2015, we have a strong foundation on which to build .
David CurtisChair, 2014–2015AIAC Board of Directors
President & CEOViking Air Ltd .
Jim QuickPresident & CEOAIAC
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PARTNERSHIP WITH GOVERNMENT
Successful Advocacy in a Year of Change
One of AIAC’s core mandates is to advocate for the development of a robust policy, regulatory and business environment that supports the growth and competitiveness of Canadian companies within Canada and around the world. We represent the interests of our industry to government and work closely with them to develop collaborative policy and program solutions designed to drive aerospace growth and prosperity for Canadians.
Because we work closely with both elected parliamentarians and members of the public service, the parliamentary calendar and the Canadian election cycle directly impact our advocacy-related strategies and tactics throughout the year . While Parliament is sitting in Ottawa, we work with Ministers and parliamentary caucuses made up of MPs who are interested in aerospace, space and defence policy issues . We host an annual Day on the Hill in order to acquaint parliamentarians with the importance of the aerospace industry to their ridings and to Canada’s economy . Additionally, while the government is developing its budget during the fall and winter months, we prepare and present a “budget ask” that highlights our recommendations for policy and program initiatives for the upcoming fiscal year . Altogether, many of AIAC’s advocacy efforts are filtered through the rhythms of the Canadian legislative process .
2015, however, was different: it was an election year . This presented a unique challenge for AIAC’s advocacy efforts . Government decision-making slows during an election period as both elected and public officials wait for a new mandate from Canadians and, once the election is finished, complete the transition of government . Our own strategic planning needed to be flexible enough to respond to this period of slower policy-making and any changes in policy direction should a new government be elected .
Looking back on 2015, we are very pleased with the results that we achieved during an extraordinary year . We delivered on several key initiatives, developed and executed a detailed election engagement strategy, and ensured that we are well-positioned to continue playing an important role as a key partner to the new government over the coming four years .
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Partnership with Government
DID YOU KNOW . . .
AIAC represents industry on over 15 government and policy-making advisory boards and committees
Aerospace Industries Association of America (AIA) Civil Aviation Regulatory & Safety (CARS) Committee
Consortium for Aerospace Research and Innovation in Canada (CARIC)
Defence Industry Advisory Group (DIAG)
European Aviation Safety Agency (EASA) Safety Standards Consultative Committee (SSCC)
General Aviation Manufacturers Association (GAMA) Technical Policy Committee (TPC)
Green Aviation Research and Development Network (GARDN)
Industry Engagement Committee for the Contract Security Program
Industry Engagement Committee for the Controlled Goods Program
International Civil Aviation Organization (ICAO) Committee on Environmental Protection (CAEP) Working Group 3 – CO2 and Emissions, via ICCAIA
International Coordinating Council of Aerospace Industries Associations (ICCAIA)
PSPC Industry Association Engagement Committee for the Government of Canada’s integrity regime
Public Services and Procurement Canada (PSPC) Supplier Advisory Committee
Space Advisory Board
Sustainment Initiative Steering Committee (Joint committee between PSPC and DND)
Working Group on Canada’s Action Plan to Reduce Greenhouse Gas Emissions from Aviation (Transport Canada Initiative)
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Partnership with Government
Supporting our Partners, Representing our Members
Building and maintaining the relationships that matter with elected officials and public servants
Over the past several years, AIAC’s work with government has been highly successful for our association and industry, resulting in:
12new policy and program initiatives
$232.5 millionin new program funding
$1 billion+in program refunding
AIAC was proud to be a close collaborator on the creation of the Emerson and Jenkins reports, providing in-depth feedback and coordinating industry-led working groups who developed formal recommendations on the way forward for major issues such as small business, space, technology, defence and procurement, market access, and more . AIAC also worked closely with government
on implementing reports, providing advice, feedback, and industry consultation as required .
AIAC’s approach to advocacy is driven by two key strategies: representing the interests of our members and acting as a positive, solution-driven partner to government . We work closely with our member-led committees to identify policy positions and priorities that reflect the needs and realities of the industry . We also build and maintain close relationships with government officials, both elected and within the public service . We are committed to developing and identifying policy solutions that help our members and that help government achieve its priorities and deliver on their commitments to Canadians .
This has allowed us to cultivate strong relationships with the public service and with elected officials and has positioned AIAC as a valuable resource for government when it comes to policy and program development and implementation . Our challenge in 2015 was using this approach throughout the transition into an election period and into whichever government Canadians chose .
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Partnership with Government
Transitioning Well
Achieving industry objectives in a changing political climate
Our goal for the 2015 election was to be well-positioned to work with the incoming government, regardless of their party or whether they were elected with a majority or minority mandate.
As such, we followed two key strategies throughout the election period: developing a clear campaign ask for each party and working with public service officials to provide any support or assistance they might require as they prepared to transition the incoming government once the election was concluded .
In developing our campaign ask, we drew from our ongoing discussions with both the public service and parliamentarians from all parties in the months leading up to the election . We also worked with industry, through our committees and through discussions with our members, to ensure that the issues and priorities we were presenting to the parties were reflective of the latest trends and issues facing our members and the global aerospace industry . Our final submission to each party highlighted the important contributions aerospace makes to Canadian jobs, innovations, communities and the national economy, and presented recommendations for ways in which the
industry could support each party in delivering on its platform, should they be elected .
At the same time, we also prepared for the transition that takes place once a new government has been elected . Following an election, new ministers and staff are briefed, priorities are set, and mandate letters outlining each minister’s key deliverables are written . This period presents an important opportunity to ensure that key incoming decision-makers understand the importance of the industry and the ways in which AIAC and its members can work with them to achieve their mandates and priorities . In advance of these transitions, we worked with key departments to understand their priorities on various aerospace policies and programs and provided any assistance or feedback they required as they made their preparations . This has laid a solid foundation upon which we can continue our work with government over the next four years .
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Partnership with Government
Getting Results
Successful advocacy in a year of change
As a result of our efforts, AIAC was able to establish a positive and collaborative relationship with the new government very shortly after the election.
At the Canadian Aerospace Summit in November we were very proud to host the Honourable Judy Foote, Minister of Public Services and Procurement, and the Honourable Navdeep Bains, Minister of Innovation, Science, and Economic Development, in their first speeches to industry following their appointments to Cabinet . We secured important meetings with incoming ministers and their chiefs of staff for key portfolios, giving us the opportunity to brief them and begin identifying opportunities for program and policy development and partnership in the months and years ahead .
We also took important early steps on key policy files, including the lifting of unilateral Canadian sanctions in Iran to create a level playing field for Canadian companies competing in that market; working with Transport Canada’s Civil Aviation branch to focus effort on key bilateral airworthiness and maintenance issues; and the development of realistic CO2 emission standards for aircraft at the International Civil Aviation Organization (ICAO) .
Throughout the election and post-election periods, we also maintained a number of advocacy-related activities . This included support for procurement modernization through the supplier advisory committee, development of the small business consortia initiative, and many other government-led industry and stakeholder engagement committees .
Over the past several years, including in the last election year, AIAC’s unique partner-based approach to advocacy has delivered significant positive results for the association, our members, and for our partners in government . This approach is reflected in AIAC’s 2016–2020 Strategic Plan, which we developed and drafted over the course of 2015 . The Strategic Plan will guide the Association’s direction and priorities on our work with government over the course of its mandate, and allow AIAC to respond appropriately to a new government following the next federal election .
Thanks to all of these efforts, AIAC’s advocacy efforts have a solid foundation for 2016 . As we continue to work with parliamentarians, Ministers and political staff, and public servants, we are confident that our advocacy efforts will continue to serve our members’ interests and effectively build a strong, growing and competitive Canadian aerospace industry .
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Partnership with Government
DID YOU KNOW . . .
AIAC has staff members focused exclusively on civil aviation regulatory matters and market access issues
They have two main roles: to provide engagement and assistance to members in addressing regulatory and market access issues, and to advocate for regulatory improvements in Canada and abroad . As part of their responsibilities, they represent Canada’s aerospace industry to ensure that Canadian interests are considered in any deliberations on civil aviation regulatory rules and policies by Transport Canada and foreign regulatory agencies .
AIAC staff interact with the four leading airworthiness authorities: Federal Aviation Administration (FAA); European Aviation Safety Agency (EASA); Transport Canada (TC); Agência Nacional de Aviação Civil (ANAC)
Through the International Co-Ordinating Council of Aerospace Industries Associations (ICCAIA), AIAC has official observer status at the International Civil Aviation Organization (ICAO) . The AIAC also works closely with other international aerospace trade associations to ensure, to the extent possible, harmonized civil aviation regulatory frameworks .
During 2015, AIAC:
Revitalized the Civil Aviation Committee
Created an ad-hoc Market Access Committee
Helped to secure relaxations to Canadian government sanctions in markets such as Belarus and Iran
Worked with industry and Transport Canada to develop funding mechanisms for aircraft certification and standards development (ongoing)
Formalized a list of priority countries for bilateral airworthiness and maintenance agreements
Initiated a process of quarterly working-level meetings with Transport Canada officials to ensure progress on various regulatory matters, including bilateral arrangements
Participated in the ICAO CAEP process, which developed the first CO2 standards for civil aviation
Completed the incorporation of the ICCAIA as a non-profit entity in Canada and assumed the role of permanent Vice-Chair of ICCAIA
Helped to secure the acceptance of Canadian supplemental type certificates (STCs) by the Federal Aviation Administration (FAA)
Encouraged the signature of a new Civil Aviation MOU with India, which took place in March 2016
Represented aerospace manufacturing interests during the development of Canada’s Action Plan to Reduce Greenhouse Gas Emissions from Aviation
Participated in deliberations for Canada’s Chemical Management Plan
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Partnership with Government
BUILDING TOMORROW
TODAY
With AIAC’s most recent Strategic Plan concluding in 2015, one of the association’s priorities over the course of the year was to develop a new Strategic Plan that would guide AIAC’s activities in the years ahead.
Building Tomorrow Today: A Five-Year Roadmap for Canada’s Aerospace Industry is our Strategic Plan for 2016–2020 . It builds on the association’s efforts in previous years to develop a strong partnership with government and create a high-performing organization that provides value to members and is a leading contributor to the continued growth and competitiveness of Canada’s aerospace industry .
The Strategic Plan’s format is based on AIAC’s overall vision for the organization:
Our vision for AIAC is to be a leading national association that provides outstanding value to members and is the partner of choice for governments resulting in a Canadian industry that is at the forefront of global aviation space and defence advances and achievements .
AIAC’s 2016–2020 Strategic Plan
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Building Tomorrow Today
AIAC’s vision has three aspirations:
1 To be a leading association that provides outstanding value to members
2 To be the partner of choice for governments
3 To ensure that Canadian industry is at the forefront of global aviation, space and defence advances and achievements
The first two elements of the vision – building a leading association and becoming a partner of choice for governments – are the two key ingredients essential to achieving a globally competitive Canadian industry, which is AIAC’s overall mandate and the final element of the association’s vision .
Taken together, these three aspirations form the pillars of the 2016–2020 Strategic Plan . Within each of these areas, we have developed specific objectives that will guide the organization as we make decisions and identify priorities both in the yearly business plans and in our day-to-day operations .
A LEADING ASSOCIATION
THE PARTNER OF CHOICE FOR GOVERNMENTS
CanadaAT THE GLOBAL FOREFRONT
DID YOU KNOW . . .
Canada’s aerospace industry is a global leader in key niche segments
1ST Civil flight simulation
Small engine production (turboprop & helicopter engines)
2ND Business aircraft production
Regional aircraft production
3RD Civil aircraft production
General aviation production*
5TH Helicopter production
Overall in OECD countries (GDP)
* General aviation includes all aircraft not used in either commuter services or airline service (excluding business jets and rotorcraft)
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Building Tomorrow Today
THE PARTNER OF CHOICE FOR GOVERNMENTSPartnership with government has long been a pillar of AIAC’s activities, and in order to achieve our five-year vision, we will build on our achieve-ments by continuing to follow the approach that has brought us success: close, collaborative partnership with elected officials and public servants that benefits both the Canadian aerospace industry and the Canadian taxpayer . We will use
this approach to enhance the strong relationship we enjoy with current government departments and to establish and grow similar relationships with other governments in key jurisdictions .
The strategy AIAC has laid out for the next five years will result in a productive partnership between AIAC and the federal government that is responsible for the creation of strong, effective
policies and programs that benefit all sectors of the Canadian aerospace industry and drive member competitiveness and growth as well as overall industry contribution to the Canadian economy .
We have also deliberately aligned the timing of our strategic plan with the length of the Canadian government’s mandate . The new government’s parliamentary majority means that they have a full four years to implement their mandate before returning to the polls . By ensuring that our strategic plan follows the same timeline, we will be able to better implement our public policy agenda in parallel with the Canadian parliamentary and electoral calendar . Future strategic plans will be drafted at the same time as the next Canadian election, so as to ensure that they take into account the results of the election and respond accordingly .
A LEADING ASSOCIATIONAIAC exists to serve the Canadian aerospace industry and help it to become more competitive both at home and around the world . As we look to the years ahead, providing valued service to our members remains at the centre of our mandate and mission .
Over the past several years, AIAC has succeeded in significantly raising the profile of the sector with the federal government and in the inter national arena .
Hon . Judy Foote, Minister of Public Services and Procurement, addresses attendees at the Annual Aerospace Dinner during the Canadian Aerospace Summit
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Building Tomorrow Today
The increase in profile and reputation has led to increased expectations from both the membership and the government . As the global aerospace environment presents new and unique challenges to our industry, both industry and government are turning to AIAC to take a leading role in the development of policies, programs and services to help Canada respond to these challenges .
In order to realise the promise of this increased profile and reputation and to respond to the increasing demand for the association’s services, the association must grow over the next 5 years while continuing to focus on the dual imperatives of value to members and being a constructive partner with government . The 2016–2020 Strategic Plan identifies specific objectives and outcomes that will guide our efforts in this area .
CANADA AT THE GLOBAL FOREFRONTWith demand for air travel surging in new and developing markets around the globe, aerospace is set to grow significantly in the decades ahead – but only for those players who can position themselves competitively in a swiftly changing marketplace . Developing the right programs and policies to give Canada that competitive advantage is essential to ensuring that our industry continues to lead the globe as a manufacturer, service provider, innovator and exporter . Because of this, program
and policy development lies at the heart of AIAC’s mandate and day-to-day activities .
In a complex industry, program and policy development can also be complex . AIAC structures its policy development based on the following matrix:
AIAC represents all three of the main sectors within the aerospace industry: Civil aviation, defence, and space . Key policy files apply across the industry, but they manifest themselves differently depending on the sector in question .
AIAC manages all of these policy files on a day-to-day basis, conducting annual environmental scans and analysis to identify trends shaping our industry to ensure that we anticipate, plan and implement for success . To guide that analysis, we have identified several key areas that we believe will be essential to the long-term competitiveness of the Canadian industry as a whole:
• Civil Aviation• Space• Defence and Procurement• Supplier Development• Manufacturing• Small Business• New Technologies and Platforms
The 2016–2020 Strategic Plan lays out specific objectives for each area and strategies that we will pursue to achieve those objectives .
CIVIL AVIATION
SPACEDEFENCE
Technology & Innovation
Manufacturing
Small Business
Regulatory & Procurement
Trade Development
Labour Market
Supplier Development
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Building Tomorrow Today
IMPLEMENTING THE STRATEGIC PLANThe Strategic Plan outlines AIAC’s overall vision for the association in the next five years, as well as specific outcomes that we will be working towards in support of that vision . It also provides flexibility to allow the association to anticipate, plan and succeed inside a changing global environment .
The Plan embodies the aspiration of the association for the next 5 years, including key objectives and strategies . The specific tactics and activities that will deliver against this strategic plan will be contained in annual Business Plans, which are produced by the management team and approved the Board .
5-YEAR STRATEGIC PLAN
ANNUAL BUSINESS PLAN
OPERATIONS PLAN
Strategic direction, vision, aspirations
Annual priorities, activities to deliver on 5-year Plan
Tactics, activities to deliver on Business Plan
Scorecard
DID YOU KNOW . . .
Canada’s aerospace industry is a national leader in twenty-first century manufacturing, driving the jobs, innovation and skills of the future
Compared with Canada’s total manufacturing average, the aerospace industry provides:
62% more value-added per employee
60% more skilled labour
29% higher wages
5x the R&D intensity
2.5xthe productivity growth (2004–2014)
2.1x the export diversity index
1.9x the export intensity
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Building Tomorrow Today
“As a relatively large aerospace company with a diverse portfolio of capabilities, AIAC provides KF Aerospace with a unique portal to access the multitude of national programs being developed across all of our businesses. As a Western based company removed from the larger aerospace strongholds of Ontario and Quebec and the epicentre of Canadian Aerospace policy development in Ottawa, being a member of AIAC is a must. The committee structure of AIAC is an open forum to members allowing us a voice in shaping Canadian policy as it develops to meet the evolving global aerospace environment. Quite simply, being a member of AIAC keeps KF Aerospace ‘current’ with global trends in the industry and the national programs that help improve Canadian competitiveness, and drives the alignment of our strategies accordingly .”
Bryan Akerstream
Director, Business Development
KF Aerospace
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Building Tomorrow Today
DELIVERING RESULTS
AIAC exists to serve the Canadian aerospace industry and help it to become more competitive both at home and around the world. Advocacy and our work with government is an important part of AIAC’s mandate, but we also undertake many other activities and initiatives to support our members and the industry. This article outlines some of those achievements in 2015.
EVENTSCANADIAN AEROSPACE SUMMIT
The 2015 Canadian Aerospace Summit, held November 17–18 2015 at the Shaw Centre in Ottawa, attracted over 1,000 exhibitors and participants during its two-day conference, B2B and trade show . Highlights from the event included:
• The first speeches by Hon . Navdeep Bains, Minister of Innovation, Science and Economic Development and Hon . Judy Foote, Minister of Public Services and Procurement, following their appointments to Cabinet .
• Presentations from senior executives from Airbus, Boeing, Bombardier, CAE, Embraer, Urthecast, Viking Air Limited, and more .
• Presentation of the James C . Floyd Award for aerospace achievement to the Canadian Trade Commissioners Service .
• A Trade Show and B2B program featuring aerospace manufacturers and innovators from across Canada and around the world .
• The Annual Aerospace Dinner, with a keynote address from Canadian pollster Nik Nanos .
AEROSPACE DAY ON THE HILL
The Aerospace Day on the Hill was a full-day special event which took place in Ottawa, Ontario on February 25, 2015 . Representatives from the aerospace and defence communities and senior elected and civil service officials from various departments, including Industry Canada (IC), Public Works and Government Services Canada, Western Economic Diversification, were brought together to discuss a broad range of issues impacting the aerospace and defence industries .
Through a series of meetings, discussions and networking opportunities, the Day on the Hill facilitated opportunities for dialogue between industry and government about ways to support the continued growth and competitiveness of Canadian aerospace . This is the third annual Day on the Hill that AIAC has hosted .
AIAC Activities in 2015
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Delivering Results
SMALL BUSINESS FORUM
In September 2015 AIAC, KPMG and EDC presented a Small Business Forum on financing and access to capital for small business in the aerospace sector at KPMG’s headquarters in Toronto, Ontario . The Forum brought together forty leaders from the aerospace business sector and from financial institutions and service providers for a discussion focusing on the financial challenges facing small aerospace businesses in the dynamic environment of the global aerospace market and on innovative ways of addressing these challenges .
INTERNATIONAL BUSINESS DEVELOPMENTINTERNATIONAL TRADE SHOWS AND MISSIONS
As part of its mandate to help our members increase their competitiveness domestically and internationally, AIAC participates in and coordinates the Canadian industry presence at a number of key international air shows and trade missions each year . In 2015, these included:
• Aero India (February 2015)• Pacific Northwest Aerospace Alliance (PNAA) –
Lynnwood, WA (February 2015)• Trade mission to Brazil (March 2015)• Aerospace Fair Mexico (April 2015)• Paris Air Show 2015 (June 2015)• Aerospace, Defence and Security Expo (ADSE) –
Abbotsford, BC (August 2015)
• International Astronautical Congress (October 2015)
• AERODAYS 2015 (London, October 2015)• Aerospace and Defence Exhibition (ADEX) –
Seoul, South Korea (October 2015)• Dubai Air Show 2015, Dubai, UAE
(November 2015)
AIAC’s International Exhibition Committee (IEC), which offers members an opportunity to set the strategic direction on where, when and how the Canada aerospace industry exhibits its aerospace product and services, grew in 2015 . Working
collaboratively with the Canadian Embassy in Paris, Industry Canada and the Trade Commissioner Service, AIAC and the IEC led the successful organization of the Canadian presence at the Paris Air Show in June 2015 .
AIAC was proud to increase international participation during the Canadian Aerospace Summit in November . We hosted a number of delegations from around the world, including from Brazil, France, US, Ukraine, Mexico, and more . At the Summit, AIAC signed an MOU with the Federación Mexicana de la Industria
Jim Quick speaks at Mexico’s Aerospace Summit in Queretaro, Mexico
Showcase Canada in the Canadian Pavilion at the 2015 Paris Air Show
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Delivering Results
Aeroespacial, A .C . (FEMIA; Mexico) . In addition to the association’s MOU with Mexico, AIAC also currently works under the umbrella of existing MOUs with Brazil, Singapore, India and Russia .
We also continue to work closely with global industry associations as Vice Chair of the International Coordinating Council of Aerospace Industries Associations (ICCAIA) .
PARTNERSHIP WITH THE
TRADE COMMISSIONER SERVICE
AIAC’s partnership with the Trade Commissioner Service (TCS) continues to be a central component of our international business development strategy . Simon Gittens, a member of the Trade Commissioner Service, is embedded in AIAC’s Ottawa office in an initiative designed to provide greater access for industry members to the services provided by the TCS . We work closely with the Trade Commissioners to maximize Canada’s presence at international trade shows . In addition, the TCS was a key partner in coordinating foreign delegations who participated in the 2015 Canadian Aerospace Summit .
COLLABORATIVE INNOVATION PARTNERSHIPSCONSORTIUM FOR AEROSPACE RESEARCH
AND INNOVATION IN CANADA (CARIC)
CARIC’s mission is to foster dialogue and generate collaboration between stakeholders in the aerospace industry, and to provide financial support to launch collaborative R&D projects . AIAC was a leading partner in CARIC’s foundation in 2014 . AIAC and CARIC also negotiated a partnership that would allow AIAC’s new Vice President of Technology and Innovation to act as CARIC’s National Director, to complement the regional offices that were set up in 2015 . In that role, he will support the strategic development of CARIC’s national network in order to
ensure that collaborative research projects leverage every region’s strength . The partnership was announced in 2016 . Further details about CARIC can be found on their website .
GREEN AVIATION RESEARCH &
DEVELOPMENT NETWORK (GARDN)
As part of our commitment to green aviation and environmental sustainability, AIAC is proud to act as the Chair of GARDN, a Business Led Centre of Excellence whose aim is to promote the development of green technologies for the Canadian aerospace industry . With the support of the federal government, GARDN has invested $60 million over the past seven years in collaborative R&D projects with industry, universities and other research institutions that have or will ultimately benefit in major benefits to the environment . In
At the Paris Air Show . (L-R): Dave Curtis, AIAC Board Chair, President & CEO, Viking Air Ltd .; Ian Potter, Vice President, Engineering, NRC; Marie Lemay, Deputy Minister, Canada Economic Development for Quebec Regions (CED-Q); Lisa Campbell, Assistant Deputy Minister, Acquisitions, Department of Public Works and Government Services; Ray Leduc, President, Bell Helicopter; Jim Quick, President & CEO, AIAC
DID YOU KNOW . . .
AIAC’s management team has more than
50 years of cumulative experience in political life
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Delivering Results
2014–2015, GARDN’s second program launched seven projects and added a further six projects following the kickoff . Further details can be found on GARDN’s website .
STATE OF THE INDUSTRY REPORTEach year, AIAC partners with Industry Canada (now Innovation, Science and Economic Development Canada) to produce a statistical analysis of the Canadian aerospace industry, its contributions to Canada, and its place within the global sector . Our analysis includes annual tracking of key indicators including employment, revenues, GDP contribution, and R&D investment . In addition, the 2015 report included a targeted look at trends in Canada’s global supply chain contributions . Our findings included:
• Aerospace is a significant national economic driver, contributing $29 billion to the national GDP and responsible for employing 180,000 Canadians .
• Compared to the Canadian manufacturing average, aerospace has five times the R&D intensity, more than double the productivity growth, and 47 percent more skilled labour .
• The Canadian aerospace industry is a global industry leader in key niche segments . It leads the world in civil flight simulation and the production of small engines (helicopters and turbo prop); is second in business and regional
aircraft production, and third in overall civil aircraft production and in general aviation production .
• Canadian aerospace is also deeply connected to the international supply chain . Over 60% of its exports are supply chain oriented, and those exports are becoming increasingly diversified both in terms of destination and product category .
• In order to integrate into global supply chains, Canadian aerospace manufacturers are incurring greater up-front costs, reducing lead times, and being asked to take on greater risk compared to the national manufacturing average .
A full version of the State of the Industry Report is available on the AIAC website .
AIAC PACIFICIn 2015, the second year of AIAC’s five-year $5 million funding and partnership agreement with the Province of British Columbia, AIAC Pacific stepped up efforts to accelerate the development and growth of aerospace in BC . AIAC Pacific is working hard to create a unified aerospace cluster that is driving innovation, economic growth and creating high value jobs in British Columbia .
An important milestone was the release of the KPMG-authored Economic Impact Analysis and Capabilities Study of the BC Aerospace Industry
Hon . Mike de Jong, B .C . Minister of Finance, speaks at the 2015 Aerospace, Defence and Security Expo (ADSE) in Abbotsford, B .C .
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Attendees at the Aerospace, Defence and Security Expo (ADSE) watch the Snowbirds perform at the Abbotsford International Airshow in Abbotsford, B .C .
which positioned the BC industry as approximately 160 small, medium and large aerospace firms employ ing 8,300 people and generating $2 .4 billion in annual revenues . The study also provided a springboard for AIAC Pacific to engage aerospace stakeholders in a program aimed at creating economic opportunity and jobs by building on identified BC strengths, such as aviation training, advanced manufacturing and space .
A highlight of 2015 was AIAC Pacific’s second time presenting the Aerospace, Defence and Security Expo (ADSE), which occurs annually adjacent to the Abbotsford International Airshow . ADSE 2015 exceeded the previous year’s attendance with just over 400 registered participants . After two years at the helm of ADSE, AIAC Pacific is well-positioned to raise ADSE’s stature to that of a national industry event, further establishing BC’s unique position to capitalize on market opportunities relating to the rapidly growing Asia Pacific region .
AIAC Pacific’s goal of increasing aerospace R&D on the west coast got a boost in the spring when AIAC Pacific became the regional office for BC and Alberta for the newly established Consortium for Aerospace Research and Innovation in Canada (CARIC) . Soon after, a BC-based research project focusing on pilot fatigue became the first CARIC-funded research project in Canada . Two more
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projects followed – one on space research, the other on advanced composites development . Four workshops were held in BC and Alberta to enhance industry understanding of the program benefits .
AIAC Pacific continued efforts in the fall to engage and unify the BC aerospace community, hosting two space strategy workshops and four aerospace industry forums in various locations around the province . Throughout the six sessions, nearly 200 highly engaged representatives of industry, government and academic institutions shared their expertise and views, and aided AIAC Pacific in creating a strategy for the BC aerospace industry to realize its potential .
AIAC Pacific’s efforts are paying off with some notable results including the creation of 250 high value jobs, new private sector investments of approximately $300M, research and development investments of over $4M along with substantial funds leveraged from other levels of governments that directly support BC industry . As AIAC Pacific enters its third year of partnership with the Province of BC, expect even greater success for industry as new jobs, investment and research opportunities are created .
WESTERN ECONOMIC DIVERSIFICATIONIn 2015, AIAC concluded one agreement with Western Economic Diversification Canada (WD) and initiated a new two-year agreement intended to maximize global exposure and create business development opportunities for Western Canadian companies at international aerospace events . AIAC’s partnership with WD is generating millions of dollars in business leads and is proving to be a
valued benefit for Western Canadian companies . The agreements, funded by WD and administered by AIAC, supported four key initiatives in 2015:
PACIFIC NORTHWEST AEROSPACE ALLIANCE
With WD support, 22 Western Canadian companies and organizations attended PNAA’s three-day conference in Lynnwood, Washington . WD funding was also used to sponsor a networking reception for international delegates as well as a trade show booth showcasing Western Canadian aerospace capabilities . The Pacific Northwest Aerospace Alliance is an important relationship for AIAC Pacific as BC is uniquely positioned to capitalize on market opportunities by being geographically close to the world’s largest aerospace cluster in Washington State .
WESTERN PARTNERSHIP DAY
In 2015, the Western Aerospace Partnership Day was combined with AIAC’s Day on the Hill to maximize value for participants . In total, nearly 30 industry representatives participated in the February event in Ottawa, with half coming from the West . The program consisted of meetings, discussions and networking opportunities designed to raise the profile of the Western Canadian aerospace industry on the national stage and among parliamentary and government officials in Ottawa .
Signing of an MOU between AIAC and the Western Canadian Defence Industry Association . (L-R): Jim Quick, President & CEO, AIAC; Dave Curtis, AIAC Chair; Bruce Gilkes, WCDIA Chair; Denean Tomlin, Executive Director, WCDIA .
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PARIS AIRSHOW
Western Canada sent a strong aerospace delegation of over 20 organizations to the 2015 Paris Airshow . The industry’s competitiveness on the international stage was on full display by the exhibitors and through industry announcements such as Viking Air Limited’s signature of a strategic
partnership for increased sales into China . AIAC Pacific is proud to have WD’s support for Western Canadian aerospace companies by providing a Western display in the larger Canadian pavilion, a Western reception, promotional materials and access to the Canadian chalet in order to maximize exposure and create business development opportunities .
AEROSPACE, DEFENCE AND
SECURITY EXPO (ADSE)
As a lead sponsor of ADSE, WD’s support goes a long way to ensuring the success of the annual event . In 2015, ADSE welcomed over 400 participants, including industry delegates attending from the US and Europe . The two-day program focused on driving new business opportunities with featured workshops, keynote speeches and networking events, including the popular hands-on aircraft display and twilight airshow .
GUIDE TO CANADA’S AEROSPACE INDUSTRYAs part of its mission, AIAC continues to work on increasing the aerospace industry’s profile on the world stage by ensuring a globally competitive industry . The Guide to Canada’s Aerospace Industry is the association’s flagship publication which showcases the industry’s broad range of products
and expertise . As the go-to-publication for concise, up-to-date information on the Canadian aerospace industry, the Guide includes detailed company profiles, an in-depth listing of products, services and specializations, as well as complete contact information for Canadian aerospace companies .
This past year, in addition to distribution across North America, the Guide was also made available to several international trade development and promotional events that took place in Dubai, Mexico, Poland, Singapore and South Korea as well as in France at the Paris International Air Show . As AIAC strives to highlight and communicate the Canadian aerospace industry’s
importance and relevance on the word stage, it will be reviewing ways to make the Guide an even more valuable resource and benefit for its members, government, media and industry executives .
Welcoming delegates to the Canada Reception at the Paris Air Show . (L-R): Jim Quick, AIAC; Pierre Pyun, Bombardier; Hon . Lawrence Cannon, Ambassador of Canada to France .
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RECRUITMENT AND MEMBERSHIPIn March 2015, AIAC sent out a survey to its members asking for feedback on AIAC’s value, programs and services to its members . The overall response was very positive, with the majority of respondents indicating that they were very satisfied with AIAC’s services . Unsurprisingly, AIAC’s advocacy efforts and policy development ranked as a very high priority for our members, as did networking and access to information . These responses will be a valuable guide as we continue our efforts to improve our services for existing members and to attract and recruit new members .
AIAC also welcomed eighteen new members in 2015 . Our membership has grown steadily in recent years, from approximately eighty companies in 2010–2011 to more than 130 members and partners today – an increase of over 62 percent . Using the feedback and information provided through our member survey, AIAC developed a new strategy for expanding our membership and partnership that is now being implemented .
AIAC WEBSITE REDESIGNAs part of our efforts to provide value to our members, attract advertising partners, and drive non-dues revenue, AIAC completely redesigned our website in 2015 . The new website is mobile-responsive, easier to navigate, and equipped for the launch of our new advertising and visibility partnerships program, which we expect to launch in the first half of 2016 . This is the first step of a larger initiative AIAC is currently implementing to expand our communications and outreach services to members, stakeholders and the wider aerospace community .
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How likely are you to recommend an AIAC membership to an industry colleague?
Overall, how satisfied are you with your AIAC membership?
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“As the recognized and well-respected Canadian aerospace industry advocate to governments and stakeholders at home and around the world, AIAC performs an absolutely essential role in ensuring that all elements of our industry, no matter their size, have a voice in building a resilient, internationally competitive Canadian aerospace sector. Our AIAC membership gives Rolls-Royce the opportunity to be an integral and contributing partner in this fundamental and critical process, the results of which substantially affect us all.
The challenges for each of our respective companies in 2016, domestically and internationally, are significant. We need to ensure that AIAC continues its effective strategic advocacy with the major stake-holders and policy makers who directly impact our Canadian aerospace industry. Ultimately, the benefits of AIAC’s efforts will accrue to each of us and to all of us.”
Bruce Lennie
Vice President, Business Development & Government Affairs
Rolls-Royce
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1 Aerospace Executives panel featuring Lockheed Martin, CAE Inc ., Rockwell Collins Canada, KPMG International 2 Signing of a memorandum of understanding between AIAC and the Federación Mexicana de la Industria Aeroespacial (FEMIA) 3 The Trade Commissioner Service of Canada (TSC), winners of the 2015 James C . Floyd Award for achievement in aerospace 4 Helene V . Gagnon, CAE, was the Summit’s MC
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2015 Canadian Aerospace Summit
1 Summit attendees network and participate in the B2B & Trade Show 2 Hon . Navdeep Bains, Minister of Innovation, Science and Economic Development speaks at the Aerospace Leadership Luncheon 3 Jim Quick, President & CEO, AIAC, introduces Hon . Judy Foote, Minister of Public Services and Procurement at the Annual Aerospace Dinner 4 Global Aerospace panel featuring FEMIA, Bombardier, MTU Maintenance, Canada, and Roland Berger 5 Summit attendees network and participate in the B2B & Trade Show
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2015 Canadian Aerospace Summit
Summit attendees network and participate in the B2B & Trade Show
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2015 Canadian Aerospace Summit
OUR TEAM
Members of the Board, 2014–2015
MEMBERS OF THE EXECUTIVE
CHAIR:
David C . CurtisPresident & CEOViking Air Ltd .
VICE CHAIR:
John MarisPresidentMarinvent Corporation
PRESIDENT & CEO:
Jim QuickAIAC
PAST CHAIR:
Barry KohlerPresidentBell Helicopter Textron Canada
HONORARY TREASURER &
SECRETARY:
Keith DonaldsonVice President, Sales & Business
DevelopmentApex Industries Inc .
EXECUTIVE AT LARGE
David Gossen PresidentIMP Aerospace & Defence
Marc ParentPresident & CEOCAE Inc .
Mike PleyChief Executive OfficerCOM DEV International Inc .
Pierre PyunVice President, Government AffairsBombardier
John SaabasPresidentPratt & Whitney Canada Corp .
Daniel VerreaultVice President, Government Relations
& Business DevelopmentGE International Inc .
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Our Team
DIRECTORS
Bryan AkerstreamDirector of Business DevelopmentKelowna Flightcraft
Stewart BainPresidentBCI
Gabe BatstoneChief Executive OfficerNGRAIN Corporation
Charles BouchardChief ExecutiveLockheed Martin Canada
Tony BurgessPresidentTDM Technical Services
Jacques ComtoisVice-President & General ManagerL3-MAS
Michel GrenierVice President & General ManagerThales Canada Avionics
Rick JensenDirector, Program ManagementBoeing Canada Operations
Gilles LabbéPresident & CEOHéroux-Devtek Inc .
Bruce LennieVice President, Business
Development & Government Affairs
Rolls-Royce Canada Ltd .
Patrick MannPresidentPatlon Aircraft & Industries
Lee ObstManaging DirectorRockwell Collins Canada
Kim OlsonSenior Vice PresidentStandard Aero
Don OsbornePresident, Information SystemsMDA
Kevin RussellVice President & General ManagerAsco Aerospace Ltd .
David SchellenbergChief Executive OfficerPJM Investments
Ian ScottExecutive Director, Government
& Regulatory AffairsTelesat
Romain TrappPresident & CEOAirbus Helicopters Canada
Phil UnderwoodPresident & CEOMagellan Aerospace Corporation
Tim WhittierDirector, Government Relations –
Landing GearUTC Aerospace Systems
Greg YeldonPresident & CEOEsterline CMC Electronics Inc .
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Our Team
Jim QuickPresident & Chief Executive Officer
Iain ChristieExecutive Vice President
Jay TeichroebVice President, AIAC Pacific
Mark BeauregardVice President, Regulatory Affairs
Bill YetmanVice President, Strategic Partnerships
Vlada ShilinaAssociate Vice President, International Strategy & Business Development
Kristen VanderHoekDirector, Communications
Jennifer ProulxDirector, Events and Government ServicesExecutive Assistant to the President and CEO (Acting)
Lynne AdamsonDirector, Operations and Member Services
Bob MatherDirector, Regulatory Affairs
Wendy HughesAccounting Assistant
Simon GittensTrade Commissioner – Aerospace (embedded)Global Affairs Canada
AIAC Staff
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Our Team
AEROSPACE INDUSTRIES ASSOCIATION OF CANADA
255 Albert Street, Suite 703 Ottawa, Ontario K1P 6A9 Canada
613-232-4297 info@aiac .ca www .aiac .ca
