Canada’s Aerospace Product Manufacturing Industry: Industrial Outlook Autumn 2016

The Conference Board of Canada, 12 pages, December 19, 2016
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This report examines the short-and medium-term economic and profitability outlook for Canada’s Aerospace Product Manufacturing Industry .

Document Highlights

Macro Environment—Improving global macroeconomic conditions, continued record profitability in the airline industry, and an agreement to reduce greenhouse gas emissions from international aviation are all positive developments for the global aerospace industry.

Canada’s Aging Fleet of CF-18 Hornet Fighter Jets—The Government of Canada’s recent announcement of an interim measure to purchase a fleet of 18 Boeing F/A-18E/F Super Hornet fighter jets should lead to an increase in supply-chain benefits across Canada’s aerospace and defence industries over the medium and long terms.

Profitability—After years of higher output prices boosting revenues and profits, industry profitability is expected to weaken. Future price gains will be moderate while supply-chain cost pressures will drive up industry costs.

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