emily king, trade commissioner international ......emily king, trade commissioner international...
TRANSCRIPT
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/[email protected]
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).
