Why do you consider Ontario a savvy place for aerospace companies to operate from in 2024?
Ontario has seen historic investments, especially over the past decade, with a strong resurgence in manufacturing sectors like electric vehicle and battery manufacturing. For aerospace, the roots go back to World War II, when Ontario was tapped to produce aircraft for the war effort. This legacy has since evolved into a robust aerospace and aviation industry with integrated supply chains across various industry tiers.
Today, Ontario is a global aerospace powerhouse. The industry is highly diversified, covering the entire supply chain, from original equipment manufacturers (OEMs) to tier one, two, and three suppliers. Virtually every aircraft has something made in Ontario, with particular strengths in landing gear, avionics, aerostructures, assembly, maintenance, repair, and operations (MRO). The province also boasts a talented workforce and cutting-edge expertise in areas like landing gear manufacturing. Our main focus is on trends such as sustainable aviation fuels, hybrid-electric technologies, and lightweighting. We're also keen on advancing AI and machine learning applications in aircraft design, engineering, and operations. Ontario’s strengths in software control systems and automation are key areas we are looking to leverage.
The province is considered a long-standing leader in the production of landing gear. Are you seeing shifts toward diversification of this offering over time?
Landing gear production has a long legacy in Ontario, but we are certainly seeing shifts in the industry. Aerospace here is highly integrated, and trends flow up and down the supply chain, driven by OEMs and regulatory requirements. One of the key changes we're witnessing is the move toward sustainability, lightweighting, additive manufacturing, automation, and rapid prototyping. Ontario has a well-developed automation and controls industry, and we're seeing expertise in areas like AI and software begin to permeate the aerospace and aviation sectors. Technologies such as additive manufacturing are being integrated into rapid prototyping and supply chain development.
One standout is Safran, a company I recently visited in Ajax. They manufacture and assemble landing gear for commercial, business, and military aircraft. I was struck by their deep integration within the supply chain and the long-term partnerships they maintain with their customers. Their work in additive manufacturing, building parts with advanced technologies and precision, was particularly impressive. The level of material science and the regulatory standards they meet are truly next-level. It’s eye-opening to see the intricate process behind something we often take for granted—how millions of parts and systems must work perfectly for an aircraft to fly safely.
Where are the current gaps in Ontario’s aerospace supply chain that need addressing most urgently?
One area where we could improve is in the final aircraft assembly. While we do some assembly here, we would like to strengthen this area further. Initially, post-COVID, we aimed to ensure that Ontario’s existing companies were ready to meet the bounce-back in air travel demand. However, this recovery took longer than expected. Now, we are more focused on future-facing projects, particularly around low-emissions propulsion systems, sustainable aviation fuels, and hybrid-electric technologies. We are also exploring advancements in green materials, lightweighting, and electrification to improve fuel efficiency.
The most immediate advancements are in sustainable aviation fuels (SAF), and Ontario’s natural resources play a big role here. Our deep history in forestry, agriculture, and food production intersects perfectly with SAF development, allowing Ontario to tap into existing technologies to produce biofuels. Beyond natural resources, Ontario’s high-tech sector is instrumental in advancing green technologies. The combination of a well-developed agriculture economy and technical expertise positions the province as a leader in sustainable fuel development.
What challenges are businesses and investors in Ontario's aerospace sector grappling with in 2024?
Supply chain issues, trade agreements, and inflationary pressures are top some top industry concerns globally. Companies are nervous about trade restrictions disrupting long-standing partnerships. Additionally, the ability to attract and retain skilled labor is an ongoing challenge, particularly as the complexity of technology increases. Ontario produces over 70,000 STEM graduates annually, with more than 50 aerospace-related programs across 16 universities. While we have the talent pipeline, like many regions, we face demographic challenges, with baby boomer retirements creating stress on labor availability. The competition for skilled workers is fierce, and aviation, seen as a niche field, has to compete with other industries for talent.
Skilled workers in Ontario are being pulled to various industries, not just internationally but also across sectors. The cross-pollination of industries means that professionals with expertise in automation, for example, can move easily between sectors like automotive, manufacturing, and aviation. While Ontario tries to retain talent, the global appeal of our educational institutions means we sometimes lose graduates to other jurisdictions. Nonetheless, we focus on developing versatile talent that can adapt to different industries, ensuring that the workforce remains robust even as demands shift between sectors.
