According to new developments, without a fully government-backed industrial policy, Canada will surely struggle in retaining its position as a leading player in the global aerospace market. At least, that’s what a trio of executives—IMP Aerospace and Defense President David Gossen, Telesat President, and CEO Dan Goldberg and Avcorp group CEO Amandeep Kaler—said to the Canadian Aerospace Summit held last November.
Currently, the sector is embarking on Vision 2025, an exercise involving an industry that includes both the federal and provincial governments, as well as stakeholders. They should all be working together to develop recommendations that the Aerospace Industries Association of Canada (AIAC) hopes will lead to sector strategy that is both well-funded and long-term.
At the recent Canadian Aerospace summit, the executives from the industry acknowledged that government support and planning are needed to guarantee that aerospace will be able to capitalize on new technologies, especially in Canada, which is known all over the world as an innovative and tech-friendly space. Furthermore, the CEO of Avcorp said that the business is being reshaped.
According to David Gossen, “I think it is important we have a sound industrial policy in Canada. It’s clear every nation [that has an indigenous capability] is doing all they can to protect that industry. I think we need to follow the same principle.”
As a long-term engineering and in-service support (ISS) provider to the Royal Canadian Air Force (RCAF). Gossen has seen numerous developments and transformations come and go in the space, such as the business model transforming as a result of OEMs transitioning from long-term partners to fierce competitors for maintenance, repair, and overhaul (MRO) work. He’s also seen established aerospace nations place barriers to safeguard their own ISS providers, as well as emerging markets create their own domestic support capabilities.
“We don’t [want to] spend 10 years trying to figure out how we rebuild [our] industry,” he also said, warning against the dangers of repeating the learned mistakes made from the boom and bust cycle of Canada’s shipbuilding industry on the East Coast.
Same concerns
Many of the concerns voiced out by Gossen is echoed by fellow panelists at the summit, Goldberg, and Kaler.
According to Goldberg, the satellite communications service provider, which is already 50 years old at this point, is being buffeted by similar dynamics as a result of new players seeking to gain entry in the industry and traditional ones seeking better home protection.
Kaler, on the other hand, exclaimed that the business is getting reshaped, as manufacturers like Avcorp have experienced the growth of build-to-print suppliers in government-supported markets. Avcorp has been a component and repair services supplier to international airlines and OEM’s for more than a decade and a half now. According to him, “The race for the best price is not going to slow down anytime soon. You can let it happen or you can take the steps.”
All three executives then noted that if ever they are going to evolve with the industry, niche sectors should be utilized and taken advantage of.