Industry Lens: Aerospace—December 2021
The Conference Board of Canada,
December 13, 2021
This report examines the short-and medium-term economic and profitability outlook for Canada’s aerospace industry.
- The pandemic dealt a weighty blow to commercial aviation, sending demand for aircraft, parts, and repairs tumbling. As aviation recovers, Canadian aerospace production will increase. Output will show positive annual growth in 2022.
- Before the pandemic, the aerospace industry faced looming skilled worker shortages. Pandemic-induced layoffs and fewer graduates in the pipeline will challenge the industry as it ramps up production.
- Supply chain stresses may lead to some restructuring of the aerospace industry. Abnormal price volatility for commodities like aluminum and titanium may increase costs for producers over the short term.
- Aerospace manufacturers are exploring innovative means of reducing aviation’s environmental footprint, often with government assistance.
- Through wage supports and targeted funding in Budget 2021, the federal government is supporting the aerospace sector’s recovery. A national aerospace strategy would provide clarity for domestic production over the long term.