Canada’s Aerospace Product Manufacturing Industry: Industrial Outlook Spring 2008

Oil Price—Oil prices hovering around US$135 a barrel in May led to a new round of bankruptcies among smaller carriers that have already used most of the tools available to reduce their costs. These challenges are limiting their capacity to invest in new aircraft.

Canadian dollar—The strong Canadian dollar means Canada’s aerospace industry is less competitive. Building sites for new aerospace products—such as Bombardier’s CSeries—are more likely to be abroad.

Air Transportation Demand—Worldwide air transportation demand is surging, particularly in emerging markets like China and India, translating into significant growth in demand for aircrafts, parts, and avionics equipment.