Thank you, Mr. Chair.
Good afternoon, everyone.
The delay was no problem. I actually enjoyed listening to the conversation.
I really appreciate the committee's time and its interest in this important topic. It's a real pleasure to be here on behalf of the Aerospace Industries Association of Canada.
Our members represent over 95% of aerospace activity in Canada, covering the civil, space and defence sectors. In 2020, Canada's aerospace industry contributed over $22 billion in GDP and over 200,000 jobs to the Canadian economy. That's quite significant.
Unfortunately, during the pandemic, we lost around 30,000 jobs due to the negative impacts on our sector. Despite the pandemic, the defence sector helped keep people employed throughout this very difficult time. We have a real opportunity now to help contribute to the economic recovery.
The intersection of aerospace and defence plays an important role in Canada's aerospace sector. The global aerospace and defence sector has been realigning dramatically to face new challenges and opportunities. Most recently, Russia's unprovoked invasion of Ukraine has forced an examination of defence and foreign policy with a focused attention on the need for Canada to have the means to play a bigger role in the North Atlantic Treaty Organization, or NATO, and continental defence within NORAD, which was just discussed here.
As many of you have heard me say before, aerospace is a unique and strategic industry for Canada. Its role in national security, its special defence trading relationships, the implications of the long product and investment timelines and the broad societal impacts and applications of its innovation have always required a close partnership between industry and government.
We applaud the Canadian government's commitment to prioritize NORAD modernization with our American ally. This represents an opportunity for government to plan and align policy with our own national security and industrial objectives to ensure that Canadian companies play a defining role in delivering capability.
Industry wants and needs to be part of that process. Early engagement is essential, so that industry can move quickly to ensure we are meeting the demands in a timely manner. We need to get this right. The rapidly changing geopolitical environment requires fast-paced government action. Threats to continental security are more complex and multi-faceted than they have ever been. A comprehensive approach is needed. Specifically, an aerospace strategy and national defence industrial strategy are needed and required.
As you've heard, we know that over the next eight to 10 years, the scale of investments will be significant. Right now, we see what is perhaps a piecemeal approach to procurement. With a strategy, industry can invest in the right places. We can plan ahead. We can move forward in alignment with government. With a road map as a guide, we can leverage our industrial strengths, so that the government—and more importantly, Canada's frontline troops—receive the equipment they need when they need it. Industry has been calling for such a national plan for years. Not only will it help with predictability and planning, it would play a significant role in reducing the delays in the current defence procurement process.
Make no mistake, we need to find efficiencies. Every year, government procurement lapses significant capital funds, which in turn deprives the military services of the equipment that is essential to their mission. It's a lost opportunity that also impedes our nation's economic growth.
We must take a long, hard look at how we can improve the current system to ensure more timely procurement. More timely procurement will mean government objectives are being met and that our nation is building its industrial capability and capacity. This is essential.
It's also time to re-examine government aerospace procurement and consider how procurement decisions can benefit Canadian firms, whether those firms are wholly domestic, the domestic subsidiary of a multinational company or an international supplier. Opportunities for Canadian companies to contribute their skills, technologies, services, systems and other components as part of a procurement strengthens the industry and contributes to the economy.
Finally, aerospace and defence programs must be modernized to spur investment here in Canada. By updating some of those programs, we can increase support for small businesses and the Canadian supply chain. The opportunities are staggering.
Let's leverage our strengths for Canadian jobs and national security. This can be done through a national aerospace strategy, as all of our competitor nations have done.
Thank you very much. I look forward to some of the questions.