Mr. Chair, I would first like to thank you for this opportunity. I am here today representing DAIR, the Downsview Aerospace Innovation and Research consortium. The consortium represents four leading academic institutions along with nine industry leaders which have come together with the mandate of establishing an aerospace hub at Downsview Park.
DAIR's mandate is a direct reflection of the Emerson aerospace review as cited in recommendation 17 which states that such a hub “would leverage Ontario's very best educational institutions in a unique partnership designed to develop innovative new technologies, aid in workforce training and skills development, and participate in supply chain development activities.” It goes on to say that this hub would provide an anchor point to a proposed aerospace technology corridor between Toronto and Montreal and across Canada to enhance the capabilities of all.
DAIR's mandate and the Emerson report indicate that Canada's aerospace sector is at a turning point and there is action to be taken in order to ensure that Canada can continue to meet industry needs and maintain a competitive advantage in the global aerospace sector.
Currently, Canada is among the leading aerospace nations in the world. Its aerospace industry is the fifth largest, and the second largest relative to the size of the economy.
The industry generates $22 billion in annual revenues, employs a workforce of 66,000, exports 80% of its output, and is the second most research-intensive industry in Canada. It includes the world's third largest commercial aircraft manufacturer, Bombardier, and a wide range of global leaders. It is a strategic sector in every sense of the term.
Yesterday's achievements, however, are no guarantee of tomorrow's success. The conditions that have prevailed over the last several decades are being replaced by new and fundamentally different global trends that are dramatically changing the competitive landscape. Examples include an industry that is set to double by 2020, but has the challenges of an aging workforce. For example, the Bombardier facility in Toronto which currently employs 4,000 people will have one-quarter of its workforce who will be eligible for retirement within the next five years.
Other challenges that we are facing include competing global markets, and a need to move small and medium enterprises up the supply chain, as future major platforms prefer to deal with large companies.
DAIR has proposed the development of an aerospace hub at Downsview Park as the solution to the challenges previously mentioned. The proposed hub is a place where aerospace industry and academic stakeholders can co-locate for the purpose of increased collaboration and enhanced opportunities for advanced R and D and commercialization. There are three primary building blocks of the Downsview aerospace hub: academic institutions, industry, and the DAIR innovation centre.
Downsview Park, under Canada Lands Company, is considered a strategic location as it is endowed with ample area for development within city limits, an existing runway, close proximity to expanding TTC and GO transit, and a current Bombardier aerospace presence which is expanding to include two new assembly lines.
The Department of National Defence and Defence Research and Development Canada are also on site. Downsview Park has a long history tied to the Canadian aerospace industry as it houses the historic de Havilland building. To date, the province has awarded Centennial College $26 million towards the repurposing of this historic building to develop a training facility for our future workforce.
The DAIR working group meetings have already been productive with space and aerospace companies collaborating, and universities and colleges looking at the creation of hybrid programs and research projects that will benefit multiple stakeholders. DAIR has also assisted the province in promoting aerospace to potential international companies as they look for expansion into Canada. At a local level, the Downsview hub would have a positive impact on the surrounding neighbourhoods, with several having been identified as high priority.
In order for the hub to become a success and strengthen Canada's position as an aerospace leader, DAIR is requesting a financial commitment from the federal government of $60 million over five years towards the repurposing of existing facilities at the Downsview site in order to create this hub.
According to the business case written by KPMG in January 2014, the creation of the aerospace hub at Downsview Park is projected to facilitate the development of up to 14,400 sustainable jobs and provide direct, indirect, and induced benefits of up to $2.3 billion over the next 20 years. Therefore, it is evident that the creation of the aerospace hub can provide a viable and sustainable solution to the skilled labour needs and will increase the competitive advantage in the aerospace industry for both Ontario and Canada.
Thank you.