Thank you, Mr. Chair.
Good afternoon, everyone.
It's a pleasure to be here on behalf of the Aerospace Industries Association of Canada. As most of you will know, our members represent over 95% of aerospace activity in Canada, covering the civil, defence and space sectors.
Aerospace has been a driving contributor to Canadian prosperity for decades, providing nearly 235,000 jobs and over $28 billion annually to our nation's economy. This hasn't happened by accident.
Eighty years ago, our political and industrial leaders made strategic decisions. They recognized the potential of this great industry to shrink our vast geography, facilitate global trade and commerce, help secure our borders, and raise our quality of life. These political leaders were keenly aware that smart policy decisions and key investments would build Canada into a global aerospace leader. They knew that the investments we made as a country would yield significant dividends, and their vision was correct. Canada became the fifth-largest aerospace industry on the planet and a true source of pride.
However, in recent years, that vision, investment and support has been slipping, and so has Canada's global positioning. The impacts of COVID-19 have meant further challenges, and we’ve fallen even further behind. The industry is reporting losses in revenue of over 40%; 95% of companies are reporting various levels of shutdowns, and over 50% have laid off employees. Support is needed, and it is needed immediately.
While the government's emergency measures have been appreciated and helpful, they're just not enough, not when aviation and aerospace are facing unprecedented challenges, and not when other leading aerospace countries, our competitors, began taking action early on. For example, France invested $26 billion. The U.S. invested $80 billion. Hong Kong invested $5.2 billion. Germany invested $9.8 billion, and on and on. These countries, our competitors, have positioned their sectors for the future. Canada needs to do the same. The future is bleak for aerospace if its customers, the airlines, can't buy its products and services.
The effects of COVID-19 have cascaded throughout the supply chain and throughout the country. Our members are located in every region, and no one has been immune, regardless of the size. Data from leading global aerospace and defence experts warn of the consequences if no action is taken or no long-term strategy developed. The need to protect our highly skilled, well-paying jobs is now.
This industry’s competitive advantage has been our skilled workforce. In the context of COVID-19, this is our strength and our challenge. We need government investment in aerospace so that we can be part of the economic recovery, and post-recovery we can once again be global leaders. But we can't do it alone. We need a partner in the government and, indeed, all parties in the House of Commons.
Finally, I want to touch on innovation, a hallmark of this industry.
Great strides are already being taken by aerospace companies to ensure a greener, more sustainable future. We're ready to help with elements of the government's green agenda. The industry is committed to this. We’re fully committed to working in partnership with you on a national aerospace strategy that takes into account civil, defence and space. This is critical. As I said, every one of our competitor countries has a strategy.
We are also seeking support from government to partner with us to help us transition to new technologies and products, a transition that will keep people employed and ensure that we remain a skilled workforce. With over 80% of what we produce being exported, there are opportunities to build more efficiency and transparency into export market opportunities. There is also an opportunity for the government to support our industry by accelerating planned spends on the defence and space sides.
I'll conclude today by saying that there are tremendous opportunities. Let's ensure that Canadians can continue to take pride in our Canadian aerospace industry, to continue Canada's leadership in R and D and in training, and to protect our skilled workers and good-paying jobs from coast to coast to coast, all while putting aviation and aerospace on a path to a greener future.
We can't be naive. Other countries are, as we speak, actively soliciting Canadian firms to shut down and move to their jurisdictions. Aerospace exists in a fierce, globally competitive marketplace. Once these jobs leave, they don't come back.
It's no accident that a country of just 35 million has such a thriving aerospace sector. On behalf of our industry, we urge all of you to continue the tradition. Stand by this industry. Grow it for the future. Protect its legacy and its jobs.
Thank you.