Business Case
Autor: pdbains3 • August 8, 2012 • Essay • 306 Words (2 Pages) • 1,077 Views
Is the Canadian Aerospace industry profitable? Revenues’ perspective: Top 30 firms representing 95% of production Bombardier represents about 45% of the industry's sales Government is the main contractor for Space and Defence industries Costs’ perspective: Canada's defence-related research and development (R&D) is about $225 million Source: www.strategis.ic.gc.ca (Government of Canada)
• 17. Compared to the manufacturing sector average, Aerospace product and parts manufacturing value-added per employee was 24% higher Average of 45 000 Canadians at wage levels that were 35% higher Aerospace product and parts manufacturing: Employment Source: www.strategis.ic.gc.ca (Government of Canada)
• 18. Employment projections
• 19. The aerospace industry invested an average of $873 million annually in R&D between 1994 and 2003, representing an average of 8% of industry sales Aerospace product and parts manufacturing: R & D Source: www.strategis.ic.gc.ca (Government of Canada)
• 20. Capital investment in Research and Development
• 21. High export intensity 70 percent of Canada's aerospace exports have gone to the US annual exports averaged $8.9 billion Positive average annual trade balance of $1.7 billion per year. Trade and Competitiveness
• 22. Embraer (Brazil) vs. Bombardier (Canada): Compete for niche markets (ex: Business jet) and rely on taxpayer subsidies such as government loan guarantees by using « dual-use » regulations. Canada was granted authority to impose up to C$2.1 billion (U.S.$1.4 billion) in retaliation on Brazilian imports as a result of Brazil’s failure to comply with the August 1999 WTO ruling ( www.csis.org ) The WTO has also found Canada guilty of providing illegal subsidies to buyers of Bombardier jets ( www.csis.org ) Unfair competition for the regional jet market? Embraer has taken advantage of low
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