Ontario Aerospace Council

April 20, 2010 08:53 ET

Ontario aerospace companies optimistic about 2010 & beyond, says OAC

New aircraft programs building momentum for some Ontario companies

Attention: Business/Financial Editor, City Editor, News Editor, Science Editor, Transportation Editor KITCHENER, ONTARIO, FOR IMMEDIATE RELEASE--(Marketwire - April 20, 2010) - Ontario aerospace firms are increasingly confident about 2010 and are planning for growth in 2011 and beyond, according the Ontario Aerospace Council (OAC), which represents 200 aerospace firms in the province. The OAC says new aircraft programs are shifting from the development stages into production, resulting in increased business activity for the industry.

"At least 30 Ontario companies are involved in the Boeing 787 Dreamliner program and many have significant positions in other key programs, such as the Lockheed Martin F35 Lightning II joint strike fighter and the Airbus A350," says Rod Jones, Executive Director of the Ontario Aerospace Council.

The positive impact of new programs can be seen on companies like Centra Industries of Cambridge, ON, which manufactures structural wing and landing gear component assemblies for major commercial and military aircraft programs.

"Centra anticipates 60 per cent growth over the next several years with new programs moving into production," says David McIntyre, President, Centra Industries. "We invested significantly in business systems and new equipment to ensure we are well positioned for new programs like the Boeing 787 Dreamliner, Joint Strike Fighter and the Gulfstream G250 and G650 business jets. It's an exciting time for us."

"Ontario aerospace companies are players on a global stage," says Luigi Mattia, President of Messier-Dowty Inc. of Ajax, Ont. "It's our global reach and the diversity in our customer base that enables us to emerge from downturns like we've experienced in the past 18 months. The business jet sector was the hardest hit with a steep decline in orders and deliveries. Military business has remained strong for Messier-Dowty with a significant increase in scope of work on Bell-Boeing V-22 as well as delivery ramp-up on the program.

"As landing gear supplier for new programs such as the Boeing 787 and the Sukhoi Superjet 100, Messier-Dowty looks forward to the positive impact these programs will have in the immediate future. There are additional opportunities as new models are introduced to the business and large commercial sectors through the midpoint of the decade," adds Mattia.

Oakville, Ont.-based Goodrich Landing Gear, part of Goodrich Corporation, is equally optimistic. Goodrich has established itself as Canada's largest landing gear manufacturer with a product mandate that encompasses a wide range of commercial aircraft from the Airbus A380 and all Boeing airliners currently in service to Bombardier's popular regional aircraft.

"We are fortunate to be involved in successful programs like the Bombardier Q400 and Boeing B737, which have maintained robust production rates in spite of the global economic downturn," says Frank Karakas, Vice President, Airbus and Bombardier Business Unit at Goodrich. "While some market segments have been impacted more than others, we expect to see improved growth over the coming years as many of the legacy aircraft that we support continue to exhibit strong demand and new programs enter into service, such as the Gulfstream G650 and Boeing 747-8. We're also excited about our future prospects as a number of key programs are expected to emerge."

Richard Aboulafia of the Teal Group, a market forecast company, presented the outlook for the global aerospace and defence industry to Ontario companies in September 2009, and cited that deliveries of commercial and business jets will grow by approximately 50 per cent from 2010 to 2018.

Within the regional aircraft market, deliveries of turboprops have grown four-fold since 2003 and are expected to remain steady or grow slightly over the next several years. This has been good news for Bombardier Aerospace Toronto and its employees, who build the highly successful next generation, environmentally friendly Q400 turboprop airliner.

Canadian companies, like Toronto-based Vector Aerospace, also have shown tremendous growth by focusing on the maintenance, repair and overhaul (MRO) market.

"Aerospace continues to be a growth market and a significant contributor to Canadian and global economies," says Declan O'Shea, president and CEO of Vector Aerospace. "We've consistently met or exceeded expectations and have just completed another record year, with 2009 revenues up 13 per cent over the previous year, which further builds on our outstanding results for 2008. We have a clear strategy for growth in 2010 and expect to grow our market share across our key platforms. We've continued to reach into new markets, improved our customer service through increasing our on-time deliveries and reducing the turnaround time for aircraft and engines in our shops.

"Vector also has benefited from being in the maintenance, repair and overhaul sector of the aerospace industry, which has not been impacted as severely by the economic downturn, and by having a balanced workload of commercial and military customers. We're very optimistic about 2010 and beyond," adds O'Shea.

On the Wings of Innovation planned for June 4-6, 2010
"Many Canadians are surprised to learn that our industry ranks fifth in the world and employs more than 80,000 Canadians," says Jones. "For us to continue to have success, we must continue to invest and plan for next generation programs. Industry and government are actively focussed on planning for the future."

This summer, the OAC and the Ontario government are working to host On the Wings of Innovation 2010 in Windsor, where executives from the world's top manufacturers will connect with the Ontario aerospace industry.

"Most aerospace industry events are focused on today's business and talking about what we already know and do," says Jones. "This event will showcase innovations that move the design and production of the next century of aircraft to entirely new heights."

The Ontario Aerospace Council is the voice of the Ontario aerospace industry, focussed on growing the industry's global market share.

-30- /For further information: Rod Jones
Executive Director
Ontario Aerospace Council
416-399-2648/ IN: DEFENCE, ECONOMY, TECHNOLOGY, TRANSPORT, TRAVEL

Contact Information

  • Hugh Black, HMB Communications Group for the OAC
    Primary Phone: 416-898-4871
    Secondary Phone: 905-338-1590
    E-mail: hughblack@cogeco.ca