Is This the Sign to Invest in the Aerospace Manufacturing Industry? Discover Why Now Might Be the Perfect Time.
While many manufacturing sectors struggle with global uncertainties, some are thriving and looking towards a brighter future. Canada is one of the leaders in these successful sectors, with aerospace at the forefront. Here's a closer look at the impressive progress Canada’s aerospace industry is making:
Aerospace: A Rising Star
The aerospace sector in Canada has not only recovered but surpassed its pre-pandemic business volumes. Thanks to proactive private companies who continuously invested and drive strategic initiatives, the industry is thriving. According to the latest reports from AIAC and ISED, Canada's aerospace manufacturing revenues reached 97% of pre-pandemic levels in 2023.
Economic Impact
Employment in the aerospace sector reached 96% of pre-pandemic levels in 2023, showcasing a robust recovery and growth trajectory.
In 2023, the Canadian aerospace industry made a significant contribution to the economy:
- Added $28.9 billion to GDP
- Supported 218,000 jobs across the country
Between 2022 and 2023, the industry:
- Contributed an additional $1.7 billion to GDP
- Created 5,400 new jobs
Innovation: Leading the Way
Innovation is at the heart of Canada's aerospace industry. In 2023, it maintained its #1 R&D ranking among all Canadian manufacturing industries. The sector's R&D intensity, measured as the ratio of current R&D activity relative to its GDP contribution, highlights its commitment to cutting-edge advancements and technological leadership.
Global Rankings: Among the Best
Canada's aerospace sector ranked in the top 5 globally across several key segments, including civil flight simulators, engines, and aircraft. Despite not being active in the regional aircraft production market, Canada's position in these segments is based on the dollar value of final production, underscoring its global competitiveness.
Exports: Driving Global Participation
In 2023, the Canadian aerospace manufacturing industry exported over $19 billion, actively engaging in global supply chains. More than 75% of aerospace manufacturing revenues were export-oriented, with close to 60% related to supply chain activities. This international reach highlights Canada's pivotal role in the global aerospace landscape.
Key Findings
The 2023 data reveals a dynamic and resilient Canadian aerospace industry:
- Revenues, GDP, jobs, and R&D activities all increased
- Aerospace manufacturing revenues reached 97% of pre-pandemic levels
- Contributed $28.9 billion to GDP and supported 218,000 jobs
- Maintained its #1 R&D ranking among Canadian manufacturing industries
- R&D expenditures returned to pre-pandemic levels
- Ranked in the top 5 globally for civil flight simulators, engines, and aircraft
- Exported over $19 billion and actively participated in global supply chain
What This Means for the Manufacturing Industry
Canada's aerospace industry is not just recovering; it's leading the way in innovation, global competitiveness, and economic impact. This growth and resilience offer a positive outlook for the entire manufacturing sector. By staying competitive and enhancing production capabilities, businesses can effectively meet the emerging demands of the aerospace industry and keep up with the global supply chain.
Stay tuned for more exciting updates and learn how MEGATEL CNC Solutions Inc. can help you elevate your manufacturing production.
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