emily king, trade commissioner international ......emily king, trade commissioner international...

Emily King, Trade Commissioner

International Opportunities and Tools for Canadian Aerospace Exporters

August 9, 2017

What is the TCS?

SomeexamplesofcoreactivitiesoftheTCSnetwork:• ForwardinginternationalbusinessleadsdirectlytoCanadiancompanies;

• Conductingseminars,workshopstopromoteCanadiancapabilitieswithlocalcontacts;

• Supportingincoming/outgoingmissions,tradedelegationsatshowsandconferences;

• Informationproducts;sectorprofiles,countryreports,variouseconomicreports;and,

• Raisingawarenessofandadvertisingthe‘Canadabrand’inthelocalmarket.

TheTCS’CoreMission:à TheCanadianTradeCommissionerService(TCS)providesclientswithpracticaladviceonforeignmarketsandon-the-groundintelligencetohelpthemmakebetter,timelierandmorecost-effectivedecisionsthatachievetheirgoalsabroad.

Who are the TCS clients?

Companies that are part of the Canadian business community

Contribute to Canada's economic growth

Have a demonstrated capacity for internationalization

Have meaningful economics ties to Canada

KeyStrengthsoftheCanadianAerospaceIndustry– SkilledandproductiveAerospaceworkforce(3rd inglobalcivilaircraftproduction);– Specializedandfull-serviceMaintenance,RepairandOverhaul(MRO)covered;– World-classrecognisedtrainingforbothairtrafficcontrollersandaircraftpilots;– Cutting-edgeR&Dandtechnology,suchasengineproduction,flightsimulators,

landinggear,spaceroboticsandsatellitecommunications,tonamejustafew;– Attractiveinvestmentenvironment:

Our Starting Point

AircraftpartsoperationsbasedinCanadaenjoya32.6percentsavingontotallabourcostsrelativetotheirU.S.basedcounterparts,withlowerhealthcarecostsbeingacontributortothesavings.

Market Opportunities – Aircraft andParts Manufacturing

TopAreasforB2BLeads/R&DCollaborationsingeneral:• Aircraftsales• Supplychainsales• Partnerships/JointVentures

AircraftForecast10yearsandKeyMarkets:• Commercialaircraft(single-aisle): $1,100billion(15,400units)

• NorthAmerica,EuropeandsignificantgrowthinChina• Businessaircraft: $235billion(8,200units)

• NorthAmerica,Europe,LatinAmericaandrapidgrowthinChina• Regionalaircraft: $71billion(2,700units)

• NorthAmerica,Europe,China,andAsia-PacificTopExportMarketsforAircraftandParts:• UnitedStates($11.4billion)• France($1.0billion)• UnitedKingdom($793million)

Market Opportunities – MRO Sector

TopAreasforB2BLeads/R&DCollaborationsinMRO:• EngineMRO• Modificationsandlong-termMROcontracting• ComponentsMRO(esp.inavionics,structures,APUs)

Largest,fastest-growingregionsforMRO(airframe,engine,componentandlinemaintenancegrouped)basedonOliverWymanco.forecasts:• NorthAmericamarketforecast:reaching$20.7B by2027;1%growthrate(2017-27)• WesternEurope:$20.6B;1.6%• Asia-Pacific:$20B;4.4%• China:$19.7B;10.1%• MiddleEast:$10.3B;5.7%• LatinAmerica:$7.3B;5.1%

Market Opportunities –UAVs

TopAreasforB2BLeads/R&DCollaborationsinUAVs:• Construction willleadthecommercialmarketinthenextdecade.All10ofthelargest

worldwideconstructionfirmsaredeployingorexperimentingwithsystems.• Agriculture willranksecondworldwide.Abilitytoprovideimagerythatcandetect

whenandwheretoapplyfertilizer,pesticidesandwaterofferstremendouspotential.• Otherimportantsegments,rankedinforecastedsizeorder,include:Energy,General

PhotographysuchasRealEstateMarketing,andInsurance.• CivilGovt.UASwillbeamuchsmallersegmentthancommercial,butappealisgrowing.

Largest,fastest-growingUAVsegmentsbasedonTealGroupForecasts:• TealGroup’s2017WorldCivilUASMarketProfileandForecastpredictsthatannual

non-militaryUASproductionwillreach$11.8billionby2026from$2.8billionworldwidein2017,a15.5%compoundannualgrowthrateinconstantdollars.

• Commercialuse willbethefastestgrowingcivilsegmentrisingmorethantwelvefoldfrom$512millionin2017to$6.5billionin2026.

• Inaddition,therehavebeennumerousacquisitionsofUAScompaniesbyIntel,Verizon,FacebookandGoogle.OthertechleaderssuchasAmazonandGEfocusedonbuildinguptheirowninternalcapabilities.

Market Opportunities –Defence

GlobaltrendsinmilitaryMRO:• BudgetarypressuresleadingtomoreemphasisonMRO• CountriessharingR&Dcoststhroughstrategicalliancesandtechnologytransfer

agreementswithglobalmanufacturers• Multi-roleaircraftMROexpectedtoaccountforthehighestproportionofspending

AirandSpacedomainislargestcomponentoftotalCanadiandefenceindustrysales,ledbymilitaryaircraftMROservices

Largest,fastest-growingregionsformilitaryaircraftMROsalesbasedonStrategicDefenceIntelligenceforecasts:• NorthAmericamarketforecast:reaching$17B by2027;1.5%compoundannual

growthrate(2017-27)• Asia-Pacific:$2.6B;5.7%• Europe:$2.3B;5.1%• MiddleEast:$1.1B;4.6%• LatinAmerica:$0.2B;7.2%

The ‘CETA Trade Train’ - are you on?

OpportunitiesandBenefitsofCETAforCanada’sAerospaceExporters

HowwillCETAbenefitCanadianaerospaceproductexporters?• CETAwilleliminatetariffsonaerospaceproducts.• CanadiancompanieswillalsobenefitfromprovisionsinCETArelatedtotemporary

entry,governmentprocurement,regulatorycooperationandconformityassessment.• Canadawillgainapreferentialtradeadvantagethatmanycompetitorswon’thave.

Temporaryentry• CETAprovisionswillmakeiteasierforshort-

termbusinessvisitors,intra-companytransferees,investors,contractservicesuppliers,andindependentprofessionalstoconductbusinessintheEU.

Governmentprocurement• UnderCETA,theEUhasofferedCanada

additionalmarketaccessatthesub-centrallevel(regionsandmunicipalities),frombodiesgovernedbypubliclaw,aswellas100%accesstoEuropeanpublicutilities.

2017-2018 Events with PlannedTCS Participation

MajorDomesticEvents:• Aerospace,DefenceandSecurity(ADSE)

Expo2017,Abbotsford,BC(August)• DEFSECAtlantic2017,Halifax(September)• UnmannedCanadaConference,Toronto

(November)• AirTransportAssociationofCanada

(ATAC)Conference,Montreal(November)

• AerospaceIndustriesAssociationofCanada(AIAC)AnnualSummit,Ottawa(November)

• Aéromart Montreal(April)• CANSEC,Ottawa(May)

MajorInternationalEvents:• AviationExpoChina,Beijing,China,

(September)• MROEurope,London,UK(October)• CommercialUAVExpo,LasVegas

(October)• DubaiAirShow,UAE(November)• Aéromart Toulouse,France(December)

• SingaporeAirshow(February)• HAIHeli-Expo,LasVegas(Feb-March)• MROUSA,Orlando(April)• AUVSI,Denver(April)• ILABerlinAirShow (April)• Eurosatory,Paris,France(June)• Farnborough,London,UK(July)

Connecting to the TCS

Best ways to prepare yourself for doing business with us:

Pre-research your foreign markets of interest

Appoint dedicated resources to internationalization strategy

Develop a credible export business plan

Contact your TCS provincial regional office

The TCS will maintain your confidentiality and communicate with you within 5 days

Important TCS Export Partners

What is CanExport?

Reimburses up to 50 percent of

eligible expenses

Requires that the applicant match

funds on a one-to-one basis

Provides a minimum contribution of $10,000 and a

maximum contribution of $99,999

Open, with few exceptions, to all industry sectors

Open, with few exceptions, to

companies looking at export markets

worldwidewww.international.gc.ca/CanExportCanexport@international.gc.ca

1-866-203-2454

Going Global Innovation ProgramTheprogramsupportsresearchersaimingtocommercializetechnologybypursuingcollaborativeinternationalresearchanddevelopment(R&D)opportunitiesthroughpartnershipswithkeyplayersinforeignmarkets.

Whocanapply?Tobeaneligiblerecipient,theapplicantmustbeaCanadian(holdingaCanadianpassport)innovatorfroma:• smallandmediumsizedenterprise;• university,orotheracademicinstitution;or• non-governmentalresearchcentres.Support:75%ofeligibleexpenses(travelcosts,hotels,meals,legalfeesforpartnerships,otherrelatedcosts),uptoamaximumof$75,000foranyapprovedproject*.*Combinedfinancialassistancefromfederal,provincialandmunicipalsourcesmustnotexceed75%oftotalcostsforanyeligiblelineitemexpenditure(stackinglimit).

Connect with the TCSwww.tradecommissioner.gc.ca

Emily King

emily.king@international.gc.ca

902-401-4144