AEROSPACE IN ONTARIO

Where Innovation Soars

A reputation for innovation

From bush planes to space robotics, Ontario aerospace firms have a long history of developing innovative products and technologies. Today, they are world leaders in turboprop production, business and light aircraft assembly, environmental controls, landing-gear systems, small turbine engines and more.

A diversified industry connected to global markets

More than 350 Ontario aerospace firms provide a wide range of aviation design, manufacturing and product support for the global aerospace industry. They are niche market leaders and key suppliers for major programs such as the Airbus A380, Boeing 787, the Canadian Maritime Helicopter program and the U.S.-led Joint Strike Fighter (F-35). Ontario is home to Bombardier Global Express business jets and Q-series regional aircraft.

As the aerospace industry moves increasingly towards globally integrated manufacturing platforms, Ontario companies offer proven expertise in working collaboratively and effectively with companies around the world.

Easy access to North American and world markets

We are at the centre of North America's manufacturing heartland, with full NAFTA access to U.S. and Mexican commercial and government markets.

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.

Our transportation and communications networks are among the best in the world, able to move people, products and data quickly and efficiently across borders.

We have five international and more than 80 regional airports. Toronto’s Pearson International Airport — Canada’s premier air passenger and cargo gateway — is serviced by 75+ carriers offering same-plane service to 49 cities in the U.S. and about 80 cities abroad.

The Economist Intelligence Unit has forecast that Canada will continue to be one of the best countries in the world in which to do business.

A workforce that is skilled, educated and available

• 58% of Ontario's workforce has completed their post-secondary education, a rate that is higher than any OECD country.

• Ontario’s 20 universities and 24 colleges of applied arts and technology produce 29,000 graduates a year in mathematics, engineering and sciences.

• 18 universities and colleges offer 36 aerospace programs, from advanced doctorates in aerospace engineering to diplomas in aviation management, maintenance and service technology. These include:
  • University of Toronto: Institute for Aerospace Studies

  • Ryerson University: Institute for Aerospace Design and Innovation

  • Carleton University: Department of Mechanical and Aerospace Engineering.

Quick facts: Ontario aerospace overview

• $5 billion revenues

• 80% from exports

• 350+ firms

• 23,500 employees

KPMG’s comprehensive international study of business costs, Competitive Alternatives (2006), reveals that Canadian aerospace manufacturers and suppliers enjoy significant cost advantages over their U.S. and European counterparts.

How much of an advantage? Compared to the U.S. average, Canadian costs are lower by:

• 6.5% in aircraft parts manufacturing

• 8.0% in precision component manufacturing

• 4.5% in plastic product manufacturing

• 3.4% in electronics assembly.

Cost savings

• Ontario’s combined (provincial and federal) general corporate income tax rate is almost 4 percentage points below the U.S. average.

• Manufacturers in Ontario pay about half as much as their U.S. counterparts for employee health care costs — 6.8% versus 13.2% of wages. In Ontario, such services as doctor’s fees, tests and hospital visits are paid through the public health system.

Innovation drives continuing growth

Practical innovation and new product development are hallmarks of Ontario's aerospace history. As Canada’s centre for R&D, we're making sure that spirit continues to thrive.

• Our Advanced Manufacturing Investment Strategy (AMIS) is providing interest-free loans to support the adoption of leading-edge production technologies by innovative aerospace companies such as Messier-Dowty and Diamond Aircraft.

• We have one of the most generous R&D tax incentive programs in the world. When tax credits are factored in, the real cost of $100 in R&D spending can be reduced to less than $41.

• Recognizing that innovation drives economic growth, the provincial government has invested more than $1 billion in public research during the past 10 years and has committed a further $1.4 billion to support Ontario-based R&D and its commercialization.

• Ontario’s five sector-focused Centres of Excellence — Communications and Information Technology, Earth and Environmental Technologies, Energy, Materials and Manufacturing and Photonics — help companies connect with innovative researchers at our publicly funded research institutions.

Business in Ontario pays dividends

• Government committed to innovation and growth

• Skilled, well-educated workforce

• Competitive business costs

• Exceptional R&D tax incentives

• Superior infrastructure

We can help

There’s no better place in the world to do business.

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

Email: info@2ontario.com

Or visit us at: www.investandtradeontario.com

All figures are in US dollars unless noted.

Printed in Ontario on recycled paper ©Queen's Printer for Ontario, 2007 333-ENG/06/07