Federal budget misses the mark on aerospaceMarch 19, 2019
Aerospace strategy and investment needed to compete globally
OTTAWA (Ontario), March 19, 2019 – Today’s budget was a missed opportunity by the federal government to strengthen the competitiveness of Canada’s aerospace sector as a whole.
“Canadian aerospace plays a major role in the economic health of our nation, and it’s critical that we capitalize on this strength to secure Canadian aerospace jobs. While the budget mentioned the previously-announced space strategy and investment in the Lunar Gateway, its failure to recognize aerospace as a whole or identify a strategy to ensure its continued competitiveness is disappointing,” said Jim Quick, President and CEO of the Aerospace Industries Association of Canada (AIAC).
AIAC recognizes the budget’s introduction of new skills development measures, as well as the strengthening of the Scientific Research and Experimental Development (SR&ED) tax credit. However, these initiatives are not enough.
“We need a strategy and investment in the broader aerospace sector, including civil aviation and defence, so that we can continue to compete in a fierce global economy. As a leading manufacturer that contributes $25 billion to Canada’s economy each year, this industry and a strategy for its continued competitiveness requires thought and consideration. That’s why we launched our Vision 2025 initiative, and we look forward to having more to say when we release our report in early April,” added Mr. Quick.
Led by the Honourable Jean Charest, Vision 2025: Beyond our Imagination is an initiative to chart a course for Canada’s future in the aerospace industry. Mr. Charest led engagement days in Toronto, Montreal, Vancouver, Winnipeg and Halifax that convened industry leaders, educators, government representatives and communities to share their expertise, best practices and ambitions for the future of the aerospace sector.
The Vision 2025 report will be released next month, and will reflect the input gathered through engagement days, and set priorities for a national aerospace strategy going forward.
AIAC is the national association representing Canada’s aerospace manufacturing and services sector. As the world’s fifth-largest aerospace industry, Canada’s aerospace sector contributes nearly $25B to the economy in GDP, exports 75% of its output, and dedicates over 20% of its activity to research and development (R&D). Aerospace is responsible for the employment of 190,000 Canadians.
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