Canadian Industrial Outlook: Aerospace—Autumn 2017

The Conference Board of Canada, 14 pages, January 10, 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 is steadily improving, as is the United States' economy, a key market for Canadian aerospace products. Demand for air travel services, as well as direct air capacity, continues to rise globally, resulting in increased investment in new planes from leading airlines.
  • Supply Chain and Trade Exposure—Canada’s aerospace industry is heavily integrated with global supply chains. The industry has been singled out for trade action by the U.S. amid the backdrop of NAFTA renegotiations. The potential collapse of NAFTA would increase
    duties on cross-border trade of intermediate inputs and would substantially alter the industry’s current structure.
  • Single-Aisle Outlook—Canada’s outlook is positive as new orders for the C Series jet spur growth in the industry. Increased passenger kilometres, traffic, increasing capacity demands, and improvements in global transport connectivity will spur growth in the single-aisle aircraft category.

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