Canadian Industrial Outlook: Aerospace—Spring 2018

The Conference Board of Canada, 15 pages, June 18, 2018
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This report examines the short-and medium-term economic and profitability outlook for Canada’s aerospace industry.

Document Highlights

  • Macroeconomic Outlook—The global economy continues to improve, and a rising middle class in emerging markets will boost demand for air travel and promote investment in new planes. Moreover, expansionary fiscal policies in the United States are continuing to improve conditions south of the border.
  • NAFTA—Given that Canada’s aerospace industry is highly exposed to trade, the potential collapse of NAFTA remains a major cause for concern. Duties on cross-border intermediate inputs could undermine the industry’s ability to compete on a global stage and would substantially alter its current structure.
  • Bombardier-Airbus C Series Partnership—Bombardier is set to close a deal with European airplane maker Airbus in mid-2018 that hands them the majority stake of Bombardier’s C Series program. The deal marks a significant transitionary period for one of the industry’s major players as it shifts focus from the single-aisle C Series to the production of luxury business jets.

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