Emily King, Trade Commissioner
International Opportunities and Tools for Canadian Aerospace Exporters
August 9, 2017
What is the TCS?
SomeexamplesofcoreactivitiesoftheTCSnetwork:• ForwardinginternationalbusinessleadsdirectlytoCanadiancompanies;
• Conductingseminars,workshopstopromoteCanadiancapabilitieswithlocalcontacts;
• Supportingincoming/outgoingmissions,tradedelegationsatshowsandconferences;
• Informationproducts;sectorprofiles,countryreports,variouseconomicreports;and,
• Raisingawarenessofandadvertisingthe‘Canadabrand’inthelocalmarket.
TheTCS’CoreMission:à TheCanadianTradeCommissionerService(TCS)providesclientswithpracticaladviceonforeignmarketsandon-the-groundintelligencetohelpthemmakebetter,timelierandmorecost-effectivedecisionsthatachievetheirgoalsabroad.
Who are the TCS clients?
Companies that are part of the Canadian business community
Contribute to Canada's economic growth
Have a demonstrated capacity for internationalization
Have meaningful economics ties to Canada
KeyStrengthsoftheCanadianAerospaceIndustry– SkilledandproductiveAerospaceworkforce(3rd inglobalcivilaircraftproduction);– Specializedandfull-serviceMaintenance,RepairandOverhaul(MRO)covered;– World-classrecognisedtrainingforbothairtrafficcontrollersandaircraftpilots;– Cutting-edgeR&Dandtechnology,suchasengineproduction,flightsimulators,
landinggear,spaceroboticsandsatellitecommunications,tonamejustafew;– Attractiveinvestmentenvironment:
Our Starting Point
AircraftpartsoperationsbasedinCanadaenjoya32.6percentsavingontotallabourcostsrelativetotheirU.S.basedcounterparts,withlowerhealthcarecostsbeingacontributortothesavings.
Market Opportunities – Aircraft andParts Manufacturing
TopAreasforB2BLeads/R&DCollaborationsingeneral:• Aircraftsales• Supplychainsales• Partnerships/JointVentures
AircraftForecast10yearsandKeyMarkets:• Commercialaircraft(single-aisle): $1,100billion(15,400units)
• NorthAmerica,EuropeandsignificantgrowthinChina• Businessaircraft: $235billion(8,200units)
• NorthAmerica,Europe,LatinAmericaandrapidgrowthinChina• Regionalaircraft: $71billion(2,700units)
• NorthAmerica,Europe,China,andAsia-PacificTopExportMarketsforAircraftandParts:• UnitedStates($11.4billion)• France($1.0billion)• UnitedKingdom($793million)
Market Opportunities – MRO Sector
TopAreasforB2BLeads/R&DCollaborationsinMRO:• EngineMRO• Modificationsandlong-termMROcontracting• ComponentsMRO(esp.inavionics,structures,APUs)
Largest,fastest-growingregionsforMRO(airframe,engine,componentandlinemaintenancegrouped)basedonOliverWymanco.forecasts:• NorthAmericamarketforecast:reaching$20.7B by2027;1%growthrate(2017-27)• WesternEurope:$20.6B;1.6%• Asia-Pacific:$20B;4.4%• China:$19.7B;10.1%• MiddleEast:$10.3B;5.7%• LatinAmerica:$7.3B;5.1%
Market Opportunities –UAVs
TopAreasforB2BLeads/R&DCollaborationsinUAVs:• Construction willleadthecommercialmarketinthenextdecade.All10ofthelargest
worldwideconstructionfirmsaredeployingorexperimentingwithsystems.• Agriculture willranksecondworldwide.Abilitytoprovideimagerythatcandetect
whenandwheretoapplyfertilizer,pesticidesandwaterofferstremendouspotential.• Otherimportantsegments,rankedinforecastedsizeorder,include:Energy,General
PhotographysuchasRealEstateMarketing,andInsurance.• CivilGovt.UASwillbeamuchsmallersegmentthancommercial,butappealisgrowing.
Largest,fastest-growingUAVsegmentsbasedonTealGroupForecasts:• TealGroup’s2017WorldCivilUASMarketProfileandForecastpredictsthatannual
non-militaryUASproductionwillreach$11.8billionby2026from$2.8billionworldwidein2017,a15.5%compoundannualgrowthrateinconstantdollars.
• Commercialuse willbethefastestgrowingcivilsegmentrisingmorethantwelvefoldfrom$512millionin2017to$6.5billionin2026.
• Inaddition,therehavebeennumerousacquisitionsofUAScompaniesbyIntel,Verizon,FacebookandGoogle.OthertechleaderssuchasAmazonandGEfocusedonbuildinguptheirowninternalcapabilities.
Market Opportunities –Defence
GlobaltrendsinmilitaryMRO:• BudgetarypressuresleadingtomoreemphasisonMRO• CountriessharingR&Dcoststhroughstrategicalliancesandtechnologytransfer
agreementswithglobalmanufacturers• Multi-roleaircraftMROexpectedtoaccountforthehighestproportionofspending
AirandSpacedomainislargestcomponentoftotalCanadiandefenceindustrysales,ledbymilitaryaircraftMROservices
Largest,fastest-growingregionsformilitaryaircraftMROsalesbasedonStrategicDefenceIntelligenceforecasts:• NorthAmericamarketforecast:reaching$17B by2027;1.5%compoundannual
growthrate(2017-27)• Asia-Pacific:$2.6B;5.7%• Europe:$2.3B;5.1%• MiddleEast:$1.1B;4.6%• LatinAmerica:$0.2B;7.2%
The ‘CETA Trade Train’ - are you on?
OpportunitiesandBenefitsofCETAforCanada’sAerospaceExporters
HowwillCETAbenefitCanadianaerospaceproductexporters?• CETAwilleliminatetariffsonaerospaceproducts.• CanadiancompanieswillalsobenefitfromprovisionsinCETArelatedtotemporary
entry,governmentprocurement,regulatorycooperationandconformityassessment.• Canadawillgainapreferentialtradeadvantagethatmanycompetitorswon’thave.
Temporaryentry• CETAprovisionswillmakeiteasierforshort-
termbusinessvisitors,intra-companytransferees,investors,contractservicesuppliers,andindependentprofessionalstoconductbusinessintheEU.
Governmentprocurement• UnderCETA,theEUhasofferedCanada
additionalmarketaccessatthesub-centrallevel(regionsandmunicipalities),frombodiesgovernedbypubliclaw,aswellas100%accesstoEuropeanpublicutilities.
2017-2018 Events with PlannedTCS Participation
MajorDomesticEvents:• Aerospace,DefenceandSecurity(ADSE)
Expo2017,Abbotsford,BC(August)• DEFSECAtlantic2017,Halifax(September)• UnmannedCanadaConference,Toronto
(November)• AirTransportAssociationofCanada
(ATAC)Conference,Montreal(November)
• AerospaceIndustriesAssociationofCanada(AIAC)AnnualSummit,Ottawa(November)
• Aéromart Montreal(April)• CANSEC,Ottawa(May)
MajorInternationalEvents:• AviationExpoChina,Beijing,China,
(September)• MROEurope,London,UK(October)• CommercialUAVExpo,LasVegas
(October)• DubaiAirShow,UAE(November)• Aéromart Toulouse,France(December)
• SingaporeAirshow(February)• HAIHeli-Expo,LasVegas(Feb-March)• MROUSA,Orlando(April)• AUVSI,Denver(April)• ILABerlinAirShow (April)• Eurosatory,Paris,France(June)• Farnborough,London,UK(July)
Connecting to the TCS
Best ways to prepare yourself for doing business with us:
Pre-research your foreign markets of interest
Appoint dedicated resources to internationalization strategy
Develop a credible export business plan
Contact your TCS provincial regional office
The TCS will maintain your confidentiality and communicate with you within 5 days
Important TCS Export Partners
What is CanExport?
Reimburses up to 50 percent of
eligible expenses
Requires that the applicant match
funds on a one-to-one basis
Provides a minimum contribution of $10,000 and a
maximum contribution of $99,999
Open, with few exceptions, to all industry sectors
Open, with few exceptions, to
companies looking at export markets
worldwidewww.international.gc.ca/[email protected]
1-866-203-2454
Going Global Innovation ProgramTheprogramsupportsresearchersaimingtocommercializetechnologybypursuingcollaborativeinternationalresearchanddevelopment(R&D)opportunitiesthroughpartnershipswithkeyplayersinforeignmarkets.
Whocanapply?Tobeaneligiblerecipient,theapplicantmustbeaCanadian(holdingaCanadianpassport)innovatorfroma:• smallandmediumsizedenterprise;• university,orotheracademicinstitution;or• non-governmentalresearchcentres.Support:75%ofeligibleexpenses(travelcosts,hotels,meals,legalfeesforpartnerships,otherrelatedcosts),uptoamaximumof$75,000foranyapprovedproject*.*Combinedfinancialassistancefromfederal,provincialandmunicipalsourcesmustnotexceed75%oftotalcostsforanyeligiblelineitemexpenditure(stackinglimit).
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