How the Canadian aerospace industry became internationally renowned

  • By Siréna Baudin
    • May 12, 2022
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Introduction to the aerospace industry

The aerospace manufacturing sector in Canada is one of the most research and development-oriented fields, which makes it an international leader in the aerospace sector. Canada’s leadership in the aerospace sector is a result of its significant export activity, the diversity of its commercial exchanges, and also the high expertise of its members.

For example, in 2016, it accounted for 30% of research and development (R&D) in all industries combined in Canada, with more than 700 companies dedicated to aerospace, and around 208,000 jobs generated, for an overall annual revenue of $27 billion. In 2020, R&D investments totaled $934 million.

Aerospace industry in Canada

An internationally renowned industry

In the field of aerospace, Canada has historically stood out on the world stage. The economic climate is ideal, and the financing system supported by the government is effective in supporting companies and investing in their innovation.

We understand that the Canadian aerospace sector deserves its position among the world leaders in the industry and that it continues to evolve by benefiting from remarkable professional ethics and the continuous improvement of its solutions. 

Canada has many strengths in the aerospace industry:

  • Export competitiveness (thanks to Export Development Canada and Canadian Commercial Corporation) resulting in the export of 75% of its products to more than 186 countries in 2020, including 55% concerning the supply chain.
  • Logistics and market access (highly developed transport infrastructure, notably US, Mexico, CETA with the EU, FTA with South Korea).
  • Location (attractive for skilled workers, proximity to the US market and other global markets).
  • Duty-free manufacturing tariff regime (Canada is the first country in the G20 to offer a free zone for industrial manufacturers).
  • Skilled labour (large pool of talent, 207,000 qualified professionals, 19 Canadian universities in the world’s top 500). Relatively low business tax rate: Canada is the most fiscally competitive country within the G7.

On top of that, Canada is the only country to place in the top 5 across all subcategories (civil flight simulators, engines, aircraft) in 2020.

Aerospace Industry in Canada

Government incentives to support businesses

To reduce the costs associated with the perpetual growth of innovation in this sector (requiring continuous investment in the supply chain and complex and expensive manufacturing processes), government programs provide support to companies through a plethora of financing. These include the Strategic Innovation Fund which allocates contributions to companies of all sizes, or the NRC-IRAP program, the SR&ED Tax Credit, and more.

At Leyton, we support aeronautical companies in their claims by interviewing the engineers in charge of the projects, and by verifying their eligibility in accordance with our methodology. Our approach to documentation and regular monitoring allows us to always maximize the credits allocated to companies.

The Canadian aerospace industry is recognized as an elite among its many international competitors.  The vast investment in R&D reflects our permanent commitment to improvement and speaks to the Canadian expertise.

The Canadian aerospace sector still has a bright future ahead of it. Obtaining government funding is essential for companies wishing to develop in this market, which remains competitive despite everything.

Do you have an aerospace project? Talk to our consultants and find out how to finance them!

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