An aerospace strategy for Canada is key to unlocking our full potential

Did you know Canada is one of the only countries in the world capable of manufacturing an aircraft from nose to tail, and certifying it? This is a result of Canada’s past political leaders deciding that our country should be a world leader in aerospace. The long-term vision held by our political leaders and senior government officials, coupled with deliberate public policy and sustained effort, helped facilitate global trade and commerce, secure our borders, and contributed significantly to economic stability and prosperity for all Canadians. We need more of that vision and long-term strategic thinking now. Realizing Canada’s full aerospace potential requires strategic planning, decisive action, and a real partnership between government and the industry. As we continue to rebound from the challenges of the pandemic, the well-being of our workforce, our communities, and our nation's economy remains a top priority. By establishing a comprehensive and cohesive national aerospace strategy for Canada, co-designed with industry and government, and inclusive of a consistent regulatory framework for civil aviation, defence, and space-related endeavours, the government can help create a stable environment that is conducive to growth and leads to effective policy implementation across the sector. An industrial aerospace strategy for Canada would also further enable our country to play a leading role in the transition to more sustainable aerospace practices. This global shift towards sustainability and environmental consciousness demands that Canada invests in and embraces green aerospace technology, including lower-carbon, sustainable aviation fuels. The aerospace industry in Canada is committed to net-zero carbon emissions by 2050, but industry cannot take this journey alone. We need leadership from the government to ensure our collective goals are met, and other countries are not leaving Canada behind. Although the signals for upcoming measures in the latest economic statement are appreciated, a specific aerospace strategy is required to ensure we meet our collective goals. Mike Mueller is the president and CEO of the Aerospace Industries Association of Canada. Photograph courtesy of Mike Mueller We welcomed the announcement earlier this year by Innovation Minister François-Philippe Champagne of the investment of $350-million under the Strategic Innovation Fund to the Initiative for Sustainable Aviation Technology to establish an industry-led, collaborative, pan-Canadian innovation network. This investment is a significant step for Canada’s aerospace sector as it works towards building disruptive sustainable aviation technologies and advancing its net-zero objective. Further research and development (R&D) initiatives will be key to unlocking Canada’s full potential, as companies continue to engage in cutting-edge projects that push the boundaries of aerospace technology. Enhanced funding for space exploration missions, satellite technology development, and space-based research can further stimulate economic growth within the sector. In addition to support for R&D and more sustainable practises, key government initiatives including the long-awaited defence policy update and ongoing work for procurement modernization offer promising avenues for bolstering the aerospace industry. Yet, there is still a great deal of work to be done to reinforce the urgent need in Canada for an industrial aerospace strategy. A comprehensive, industrial aerospace strategy for Canada, coupled with clear government initiatives, is the key to sustained growth. In the absence of a clear, consistent, and comprehensive strategy for the aerospace sector, we will continue to undermine Canada’s progress and global competitiveness, and see our place in the global aerospace ecosystem continue to erode. The Select Items Luxury Tax, for example, has the potential for significant and lasting negative impacts on Canada, with more than 3,800 jobs currently at risk and 19 aircraft orders already cancelled, resulting in more than $1.5-billion in lost revenue as well as implications for our international reputation for economic predictability and fair treatment. This tax is counterproductive to the success and stability of Canada’s aerospace, which is why unions like the International Association of Machinists and Aerospace Workers are joining forces with industry to support and amplify the call for its repeal. Providing employment to more than 212,000 Canadians, our aerospace industry stands as a source of pride and economic opportunity for Canada. In 2022, more than 80 per cent of aerospace manufacturing revenues came from exports, underscoring Canada’s role as a supplier of choice for essential aerospace products and services worldwide. Also in 2022, the sector contributed $27-billion to the Canadian economy, a significant increase from the year before. During COVID-19, the Canadian aerospace industry faced unprecedented challenges with a significant decline in air travel leading to a sharp decrease in demand for new civil aircraft and services brought on by the pandemic. Despite these challenges, Canada’s aerospace sector has demonstrated its ability to navigate the turbulence of the pandemic, not only showing signs of economic recovery, but also significant potential for growth as we emerge from the crisis. We require government to partner with our aerospace industry to advance an aerospace strategy in order for Canada to reclaim its past position and contribute to the economic recovery needed across the country. It is estimated that in the next decade, the world will require around 40,000 aircraft as well as countless numbers of unmanned aerial vehicles and other aerospace products. Our call to this Parliament and government is to set aside politics and work with us in a non-partisan way to capture our fair share of this work. Political leadership needs a vision for Canada’s place in aerospace. The question now is: will this Parliament embrace a strategy for the future? Mike Mueller is the president and CEO of the Aerospace Industries Association of Canada. The Hill Times