The Aerospace Industries Association of Canada (AIAC) is urging the Canadian federal government to develop a long-term strategy to help the country’s aerospace sector rebound from the economic slump caused by the coronavirus disease (Covid-19) pandemic.
Canada’s Viking Air debuted its new Guardian 400 intelligence, surveillance, and reconnaissance aircraft at the 2019 Paris Air Show.
“Competitor countries are making aerospace a key part of their economic recovery plans,” said AIAC’s senior vice-president Mike Mueller. “Canada needs to take similar steps – not only to retain our current position but also to be ready for the global market opportunities that will emerge when the industry recovers.”
The association, which released a set of recommendations on 2 June, said the strategy should include defence as well as civil and space. It called on the government to advance public procurement projects, particularly in defence and space, “to help stimulate and sustain high-tech supply chains through the difficult months ahead”.
Other recommendations include: forming an investment bank to support manufacturing supply chains; expanding government support for green technology; adapting Canada’s job retention programme and liquidity measures to support employees in industries that will recover slowly; and developing a plan to revive air travel.
According to AIAC, Canada’s aerospace industry is the world’s fifth largest, contributing about CAN25 billion (USD18.7 billion) to the country’s economy and employing 215,000 Canadians. However, that impact could shrink dramatically without government help, the association warned.
A recent survey found that AIAC member companies expect their revenue to decline by 40% in 2020 as a result of the pandemic. Already, more than 95% of those companies are running at partial capacity or have shut down, and 60% have laid off workers.
Looking to read the full article?
Gain unlimited access to Janes news and more...
