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.
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