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AEROSPACE IN ONTARIO

Where Innovation Soars

FAST FACT
Canada has the world's fifth largest aerospace industry, comparable in size and scope to that of Germany or Japan.

Every effort has been made to ensure the accuracy of the information in this publication at the time of writing; however, the programs referred to and the data cited are subject to change.

All figures are in US dollars unless other noted. The exchange rate used is based on the Bank of Canada's average annual exchange rates.
2004: Cdn$1.00 = US$ 0.77
2005: Cdn$1.00 = US$ 0.83
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Aerospace in Ontario

a highly diversified industry

pushing the boundaries of innovation

powered by an exceptional workforce

based in a globally competitive business environment

strategically located in the heart of North America

Come build your business in Ontario.
Let your company soar with us.


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A highly diversified industry

In the highly competitive global aerospace industry, Ontario provides manufacturers with an innovation edge.

That edge is helping companies across the spectrum—from aircraft assembly and parts, to satellites and remote sensing technologies, to maintenance, repair, and overhaul—win contracts around the world.

Ontario's industry has a long history of building new and better aero products. It started well before the first De Havilland Beaver rolled off the Downsview production line in 1948 and is continuing into the 21st century with the development of the Canadarm2 and RADARSAT-2.

That competitive edge is part of the reason Ontario firms, such as Goodrich Landing Gear, Messier- Dowty, Honeywell and Magellan Aerospace, are partners and suppliers in major international programs such as the Airbus A380, Boeing 787 and the US-led Joint Strike Fighter. Ontario companies will also provide lead support for the Canadian government's new maritime helicopter program involving 28 Sikorsky H92s.

And there's more. We also have the people, the infrastructure and business environment that make innovation profitable.

"With nearly 1,100 employees innovating aerospace solutions every day, Honeywell Aerospace understands the value of locating in a province with great people and a strong educational network. Ontario offers Honeywell access to graduates of some of the world's leading colleges and universities. And the competitive solutions for R&D make Ontario an obvious choice for a technology-based company like ours. Ontario is helping Honeywell build a world that is safer, more productive and more energy efficient."

Charlene Arje, President and National Executive
Honeywell Canada

DID YOU KNOW
The first commercial jet transport to fly in the Western Hemisphere was designed by a Canadian and built by Avro of Toronto. (1949)

Some of Ontario's world-leading aerospace companies

Specialization Field Company Name
Regional and business aircraftBombardier Aerospace
Light aircraftDiamond Aircraft
Special purpose aircraftBombardier Aerospace
Found Aircraft Canada
Unmanned aerial vehiclesMMIST
Small and medium turbine enginesPratt & Whitney Canada
Commercial helicoptersEurocopter Canada
Aero structuresMagellan Aerospace
Landing gear systemsGoodrich
Messier-Dowty
Heroux-Devtek
Aircraft environmental systemsHoneywell Canada
Electronic systemsCMC Electronics
L-3 Communications
Hispano-Suiza Canada
Curtiss-Wright Controls
Optical/Visual SystemsRaytheon Canada
L-3 Communications
Air traffic control/management systemsRaytheon Canada
Flight simulators and visual systemsAtlantis Systems
Conversion/upgrade/retrofitL-3 Spar Aerospace
Field Aviation
Kelowna Flightcraft
Integrated space robotics systemsMacDonald Dettwiler and Associates
Space hardware subsystemsCom Dev
Satellite communication systemsEMS Technologies
Gear-boxes and transmissionsNorthstar Aerospace
Motion control componentsCurtiss-Wright Controls

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Pushing the boundaries of innovation

Innovative companies. Talented researchers. Advanced facilities. Together, they keep Ontario's industry at the leading edge of the global aerospace sector.

Our aerospace firms operate in a creative business environment that includes some of the world's most advanced manufacturers. Ontario automotive, telecommunications and life sciences companies are global leaders in developing faster, more precise production processes and new applications for advanced polymers, light weight composites and super conductive materials.

Our advanced manufacturers form a vibrant community with close connections to university, college and public-sector research institutes. Working together, they develop products that work better, cost less and, ultimately, win customers around the world.

Ontario's aerospace industry

  • More than 350 companies
  • 22,000 employees
  • Sales of almost $5 billion
  • Export-oriented, with customers and project partners across the U.S. and around the world

FAST FACT
More than 100 languages are spoken in Ontario, a "people" resource that gives our companies a competitive advantage in global sourcing, sales and partnerships.

"Pratt & Whitney Canada is the number one R&D investor in the Canadian aerospace sector. Our Mississauga facility has the engineering leadership in turbofan technology and is proud to collaborate with seven Ontario universities for R&D activities. These collaboration efforts are making a significant contribution to developing the next generation of Ontarian engineers and enhancing the world-class capabilities and reputations of our universities."

Dan Breitman, Vice President, Mississauga Operations and Turbofan Development
Pratt & Whitney Canada

Taking a collaborative approach to R&D

R&D in Ontario is conducted in an open and collaborative atmosphere.

Aerospace leaders such as Pratt & Whitney Canada, Bombardier Aerospace, MacDonald Dettwiler and Associates and dozens more are plugged into our network of industrial and public-sector researchers and their facilities.

Researchers at University of Toronto's Institute for Aerospace Studies, Ryerson University's Institute for Aerospace Design and Innovation (RIADI), McMaster, Queen's, Carleton, Waterloo and Ottawa are all working closely with industry partners on aerospace research projects.

Groundbreaking discoveries are also being made and tested at public research centres across the province including:

  • the Institute for Aerospace Research Ottawa, Canada's national laboratory for aerospace R&D
  • David Florida Laboratory, Ottawa, Canada's world-class spacecraft assembly, integration and testing centre
  • Integrated Manufacturing Technologies Institute, London, a breeding ground for new products and technologies.

DID YOU KNOW
The variable pitch propeller, one of the most important innovations in the history of aviation, was designed by a Canadian and had its first flight test at Camp Borden, Ontario. (1927)

Strong government support for R&D

Practical innovation and new product development are hallmarks of Ontario's aerospace history. We're making sure that spirit continues to thrive by providing a large and growing number of R&D support programs:

  • Ontario's $400 million Advanced Manufacturing Investment Strategy offers interest-free loans to help companies adopt innovative technologies that will put them on the leading edge of global manufacturing.
  • We offer the most generous R&D tax incentive program in the G7. When tax credits are factored in, $100 in R&D expenditures can be reduced to less than $41.
  • Ontario's Centres of Excellence, such as the Centre for Materials and Manufacturing, connect companies with public sector scientists and research facilities to develop commercial innovations.
  • Recognizing that innovation drives economic growth, the provincial government has committed $1.4 billion over four years to support Ontario-based R&D and its commercialization.
  • The federal government also offers a range of aerospace R&D support programs through the Institute for Aerospace Research, the Canadian Space Agency, Technology Partnerships Canada, the Industrial Research Assistance Program and the National Research Council.

More Costs Qualify For Tax Credits In Ontario

OntarioUS
Wages and salariesYesYes
Capital equipmentYesNo
MaterialsYesYes
OverheadYesNo
Contract expensesYes65 - 75%

FAST FACT
Ontario's R&D incentive program is one of the most generous in the industrialized world.

"At Bombardier Aerospace's Toronto facility, we assemble Q Series turboprop airliners and the Global family of business jets. We also assemble wings and landing gear for the Bombardier Learjet 45 aircraft, components that are shipped via truck to Bombardier's Wichita (Kansas) location for final assembly. Access to and from Toronto to anywhere in the world is very simple because there are so many efficient transportation options – road, rail and, of course, air. The location also gives us access to another, unique resource. We integrate components and parts from suppliers around the world. This means we have to interact smoothly with many different business cultures. Because of Ontario's multicultural workforce, we have the ability to dispatch people who are from those cultures and are very comfortable working with our suppliers and customers anywhere in the world." Todd Young, Vice President, Aircraft Programs and Planning Bombardier Regional Aircraft
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An exceptional workforce

Few industries are as knowledgeintensive as aerospace.

The sheer complexity of the business demands high levels of skills ranging from technical and engineering know-how to people skills like problem-solving, multi-tasking, teamwork and collaboration.

Aerospace thrives in Ontario because we have the technicians, managers, engineers and executives needed to make automated production processes hum… to manage global supply chains and business networks… and to win major international contracts.

DID YOU KNOW
Dr. Wilbur Franks of the University of Toronto invented the anti-gravity or "g" suit. (1940)

"The global aerospace market is in a strong growth period and Ontario aerospace companies are well positioned to take advantage of it. Key aerospace systems and component providers are benefiting from Ontario's robust economic climate and the leading-edge skills, education and training opportunities that exist here. These advantages will ensure strong, competitive Ontario-based aerospace companies today and in the future." Richard Neill, President and CEO Magellan Aerospace Corporation

Business skills for a global industry

Business schools at York University, Queen's, Western and the University of Toronto consistently rank among the best internationally in polls conducted by BusinessWeek, Forbes and the Wall Street Journal.

Our business community is connected to global markets. More than 40% of Ontario's economy derives from exports. More than 100 languages are spoken here.

Because of Ontario's export-focused business culture, our workers have the experience and understanding that advanced manufacturers need to support international business networks, partnerships and alliances.

FAST FACT
Ontario's network of 20 universities and 24 colleges produces 29,000 graduates in engineering, math and sciences annually.

DID YOU KNOW
The world's first true STOL (short take-off and landing) aircraft, the de Havilland Beaver, was designed and built in Downsview, Ontario. (1948)

Ontario's Innovation Corridor, which stretches from Ottawa to Windsor and up into Northern Ontario, is home to world-leading companies that collaborate with more than 150 university, college and public research centres.

Ontario is a great location for advanced manufacturing and R&D because of the readily accessible critical resources and financial incentives that are available to support sustainable development."

Colin Fernie, Group Vice President
Regional and Business Aircraft Business Unit
Messier-Dowty International

Specialized aerospace education

Universities and colleges across the province offer state-of-the-art aerospace training and education.

Master's and PhD programs are offered by the University of Toronto's Institute for Aerospace Studies and Carleton University's Institute for Mechanical and Aerospace Engineering. At the undergraduate level, engineering and other aero-related studies are offered at more than a dozen Ontario universities, specifically Ryerson University's Aerospace Engineering program.

Our colleges focus more on practical training. Programs range from aircraft manufacturing to airport services administration. Confederation College's Aviation Centre of Excellence (ACE), for example, is a state-of-the-art, world-class, 59,000 square-foot facility located at Thunder Bay International Airport. Colleges can also work closely with you to provide customized employee training programs.

DID YOU KNOW
Telesat Canada, based in Ottawa, launched the world's first commercial, geostationary domestic communications satellite. (1972)

"Field Aviation has had an exciting run for the past four or five years. We're garnering a lot of respect internationally as a little company that does big things. We've demonstrated our capabilities via an outstanding track record of successful programs involving low, medium and high speed aircraft platforms. Thanks to the available human resources in Ontario, both in terms of engineering and production staff, Field Aviation has been able to meet the challenges of growth and be recognized worldwide for quality service."

Michael Latino, Director, Mod Centre Sales and Marketing

Field Aviation
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A globally competitive business environment

Hundreds of major international companies in the aerospace, auto, ICT and life sciences sectors are investing millions to build advanced manufacturing and state-of-the-art R&D facilities in Ontario.

Why?
Because Ontario is a profitable place to do business.

Competitive business costs
According to KPMG's 2006 Competitive Alteratives report aerospace manufacturing costs are lower in Canada than in the U.S., France, the U.K., the Netherlands, Italy, Germany or Japan.

Ontario's combined federal-provincial corporate tax rate of 34.1% is more than three percentage points lower than the U.S. average for manufacturing. This, along with generous tax incentives such as our R&D program, gives Ontario firms a clear competitive edge.

Competitive "people" costs
Two factors help keep salary costs significantly lower in Ontario than in the U.S.

First, Canada has the lowest cost of living among G7 countries. Second, our publicly funded health care system significantly reduces the employers' cost of healthcare benefits in Ontario, especially when compared with what their U.S. partners and competitors pay.

Streamlined business systems
We have embraced e-government and stripped miles of red tape out of the regulatory system.

We make it easy to pull together worldwide research or production teams. Work visas can be produced in days for key personnel and their families. Spouses and other partners are also permitted to work in Canada.

FAST FACT
Ontario workers spend an average of 8 years on the job, reducing training costs and strengthening company resources such as teamwork, trust and customer service.
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Strategic location in the heart of North America

Come grow your company at the centre of one of the world's biggest and richest aerospace markets.

Ontario's NAFTA advantage

Our companies enjoy easy access to U.S. and Mexican markets, including government procurement programs, through the North American Free Trade Agreement (NAFTA).

Special trade agreements—defence development and production sharing agreements and specific exemptions under U.S. International Traffic in Arms Regulations (ITARs)—provide access to U.S. military projects.

"We operate in a specialized market niche with a high degree of customization. It is knowledgeintensive. We invest a significant amount in training and R&D. One of the keys to our success is having a low employee-turnover rate. We've had great success in Ontario recruiting and retaining skilled, motivated employees who are dedicated to helping us grow."

Peter Van Drunen, President and GM
Curtiss-Wright Controls, EM Technologies

DID YOU KNOW
The world's most powerful earth observation satellites, RADARSAT-1 (and soon, RADARSAT-2) were largely designed and built in Ontario. (1995, 2006)

Exceptional transportation networks

Our transportation systems can move products quickly and efficiently across the continent and around the world.

Road, rail and marine networks connect to the U.S. at 15 border crossings. The Canada – U.S. SMART Border program is specifically designed to speed the passage of goods for industries such as aerospace and auto that operate with a high level of cross-border integration.

Our five international airports— Toronto, Ottawa, Hamilton, London and Thunder Bay—provide direct access to and from every region of the province. Toronto's Pearson International Airport — Canada's premier air passenger and cargo gateway — is served by 65 carriers offering same-plane service to 26 Canadian, 41 U.S. and 47 international destinations.

Our corporate centres are about two hours by air from major U.S. cities. Washington, Philadelphia, New York, Cleveland and Chicago are within a 12-hour truck drive of southern Ontario.

FAST FACT
57% of Ontario's workforce has completed their post-secondary education, a rate that is higher than any industrialized country, according to the Paris-based Organisation for Economic Co-operation and Development (OECD).

For U.S. military purchases, Ontario firms are considered part of the North American defence industrial base. Special trade agreements—defence development and production sharing agreements, specific exemptions under U.S. International Traffic in Arms Regulations (ITARs) —facilitate access to U.S. military projects.

"Ontario is a good place to do business. The province has all the infrastructure, support and facilities needed by an advanced aerospace manufacturer to develop, produce and sustain a world class position in its product lines for the global market. We at Goodrich have found in Ontario an excellent supply of highly skilled labour, strong, tangible support from both levels of government and a competitive cost structure."

Gerald Conaboy, Director, Government Relations
Goodrich

Great place to live

When your workday is done, Ontario offers a quality of life that is among the best in the world.

Our cities are vibrant, cosmopolitan and safe. Our small towns are welcoming. The recreational opportunities are superb. Northern Ontario offers a unique combination of fresh opportunities and a spectacular lifestyle.

Join Ontario's aerospace leaders. Come soar with us.

DID YOU KNOW
The Canadarm and Canadarm2 were designed and built for NASA by Spar Aerospace (now MD Robotics) in Ontario. (1981, 2001)

Special thanks to the following organizations for providing photographs:
AkteLUX
Bombardier Inc.
Curtiss-Wright Controls
Diamond Aircraft Industries
Eurocopter Canada Limited
Goodrich Landing Gear Division
MD Robotics
Magellan Aerospace Corporation
Messier-Dowty Inc.
MMIST
NASA
Pratt & Whitney Canada
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We Can Help

Connecting businesses in Ontario and throughout the world with the people, products and ideas that make Ontario "Canada's Economic Powerhouse".

Looking for site cost and availability data? Let us help you with:

  • the latest information on Ontario's economy and business climate
  • province-wide site searching of available land and buildings
  • comprehensive profiles of Ontario municipalities
  • coordination of site selection and community visits
  • contacts with federal, provincial and municipal officials, utility companies, transportation organizations and business facilitators.

1-800-819-8701 (North America)

00-800-46-68-27-46 (U.K. and Europe)

e-mail: info@2ontario.com

Aerospace industry associations

Ontario Aerospace Council
www.ontaero.org

Aerospace Industries Association of Canada
www.aiac.ca

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For more information about investment opportunities in Ontario, please call us at:

1-800-819-8701 (North America)
00-800-46-68-27-46 (U.K. and Europe)

Ontario Investment and Trade Centre
250 Yonge Street, 35th Floor
Toronto, Ontario,
M5B 2L7 CANADA

Tel: 416-313-3400
Fax: 416-360-1817
e-mail:info@2ontario.com

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