The sky is the limit, but we will need wings

Innovation, often cited as a core foundation upon which Canadian governments want to build, is at the heart of aerospace. In fact, aerospace involves innovation at the highest levels with spillover benefits that touch every aspect of our daily lives. From cellular technology, to GPS, to robotics, to our ability to monitor, measure, and respond to climate change—aerospace has always been on the cutting edge of technological innovation and invention. As restrictions lift and travel resumes, there are clear opportunities ahead for not just industry recovery, but also growth and prosperity. As a nation, will we be ready to seize these opportunities? Aerospace’s role in national security, defence trading relationships, the broad societal impacts and applications of its innovations, as well as the exceptionally long product and investment timelines, set it apart and require a close partnership with government. A strong, national aerospace industry supports a strong economy, strong communities, and a strong, competitive Canada in the face of rapidly changing geopolitical challenges. There can be no doubt this is an industry that can, and must, be prioritized as a driver of our nation’s economic and security interests. Accordingly, it requires a long-term national aerospace strategy that renews the government-industry partnership, leverages our competitive advantages, and positions us to lead in the aerospace sustainability revolution. We need a full scale and cross-departmental aerospace strategy. Several top, and aspiring, aerospace countries including the United States, the U.K., France, Germany and Australia, are putting their strategies in motion. Canada must do the same. We have a generational opportunity to position this industry to capitalize on the multi-trillion-dollar intersection of aerospace and clean-tech and propel Canada to the forefront of cutting-edge manufacturing capabilities and green technologies. And the opportunities apply to not only civil aviation, but also defence, UAVs and space. Threats to continental security are more complex and multi-faceted than they have ever been and they require a comprehensive approach. Our industry has called upon Canada’s government to increase its defence budget to meet its NATO commitment, go forward with NORAD modernization, and expedite procurement initiatives. When it comes to space, from the earliest days, Canada has been both a pioneer and trailblazer. Space innovation is no longer a value-added activity, it’s an absolute necessity. Space-enabled services connect us globally, keep us safe while moving about our daily lives, enable e-commerce, and play a critical role in monitoring weather and environmental changes. Canada has always punched above our weight. And we must continue in the future. We must ensure we have the workforce. Unlike other industries, aerospace companies do not compete against one another, nations compete against nations. Canada’s aerospace industry has one of the most highly-skilled workforces anywhere in the world. The future success of this industry rests on the strength of our people. We must make every effort to keep our aerospace jobs in Canada. Looking to the future, we need to support workers and grow the workforce through skilled labour programs, partnerships with post-secondary institutions, industry-government collaboration, and across the federal and provincial to ensure we have the workers for high-paying, value-added jobs for generations to come. This is particularly important to meet sustainability objectives simultaneously with Industry 4.0 needs, which will require new skills and training, the inclusion of new industries, and new players. And finally, we must ensure policies do not do more harm than good. Case in point, the proposed imposition of a federal tax on aircraft. The tax will have a dramatic, negative impact on Canadian manufacturing, discouraging companies from buying Canadian made products, costing jobs, impeding domestic capacity and capability in the middle of a recovery period from COVID-19. This new tax works at cross-purposes with the very measures the government announced to support industry recovery. No other jurisdiction imposes such a tax penalizing their own domestic aerospace industry. Our loss will be a gain to US aerospace and other competitor nations. As a nation, let’s be strategic and ensure we are seizing the opportunities ahead, not penalizing an industry recovering from the biggest losses in aviation history. Let’s chart a course for innovation and growth with a full-scale aerospace strategy for decades to come. Mike Mueller is the president and CEO of the Aerospace Industries Association of Canada. The Hill Times