Entering the aerospace supply chain

Canadian Metalworking (CM) recently asked Jim Quick, president/CEO of the Aerospace Industries Association of Canada (AIAC), for his opinion on the industry and how manufacturers can break into the sector. Here’s what he had to say.

CM: As other manufacturing sectors decline, how is Canada’s aerospace industry maintaining its place as a world leader?

Quick: As more and more markets open up and air travel becomes more accessible, we are going to see continued increase in demand for aerospace products and technologies. While aerospace is on the rise and the opportunities are out there, Canada needs to be well-positioned to take advantage of that.

Government support through programs and policies that support sectors that are key economic drivers in our economy will be essential.

Our industry is becoming concerned that we are seeing an erosion in some of the programs that have allowed us to be a world leader in manufacturing business aircraft, small engines, rotary, and simulation and training. Canada will need to reverse that erosion if we’re going to stay competitive globally.

CM: Why does the research show that Canada’s aerospace manufacturers focus more on innovation than other industrial sectors?

Quick: Aerospace is extremely globally integrated. To succeed in aerospace, you need to compete with companies not just in Canada, but around the world. To be competitive, you need to innovate.

Canadian aerospace companies are focused on the global marketplace, because that’s the competition. This sets the aerospace industry apart from most of the other Canadian manufacturing sectors, which is why it’s so important that programs and policies that support the R&D and innovation ecosystem in Canada reflect the realities of innovating and competing in the global aerospace marketplace.

We’re seeing a trend right now to use general, one-size-fits-all approaches to innovation in Canada. We think that’s the wrong approach, and one that is putting continued aerospace success in Canada at risk.

CM: What is the relationship between R&D and the health of the sector?

Quick: It’s absolutely vital. Our members’ competitiveness is directly tied to their ability to innovate and stay on the cutting edge of the global marketplace. No innovation means no competitiveness, and no competitiveness means no aerospace sector in Canada.

CM: What role does the government play in aerospace manufacturing in Canada?

Quick: The government has a critical role to play in aerospace manufacturing in Canada. Government programs that support R&D and technology demonstration increase the sector’s ability to invest in highly innovative activities. As a first buyer, the government can also fully leverage its procurement power.

Aerospace is unique among Canadian manufacturing sectors because of its global integration, its established innovative capacity, and its unique competitive realities. In the past, our successful partnerships with government have always reflected and leveraged this, but recent changes to the federal government’s innovation programming have ignored industry realities.

The result has been that Canada is losing its competitive advantage, which is negatively impacting bottom lines, jobs, and investment in Canadian aerospace. There’s an urgent need for the government to address this if we’re to stop falling further behind.

CM: Is there a continual emergence of startups in this sector, or is the work done mainly by long-established companies?

Quick: There’s a mix. While the industry’s overall output tends to be dominated by the large OEMs, aerospace is a vibrant and growing sector; there are a lot of new companies who are bringing new ideas and approaches to the table. The trick for small companies is to add value to OEMs and use that to scale up.

CM: How can a metal cutting shop get into this sector, and how can it win bids for work?

Quick: OEMs are looking for strong suppliers who can help them manage risk and deliver quickly and on scale. That includes finding ways to help OEMs reduce costs, take on larger work packages, and deliver quality goods on time.

This also can include pursuing partnerships with other companies that will allow them to grow their capacity and meet their aerospace customers’ needs and standards. It could also look like investing in process-focused innovation, which will allow them to scale more quickly and take on more risk and larger work packages.

And I would certainly recommend attending or exhibiting at the Canadian Aerospace Summit, which we host every year. That’s a great way to hear about the latest trends in the sector and make the important networking and business connections necessary to start securing business in the sector.

CM: How important is it for industry, R&D institutions, and government to become partners?

Quick: Whether it’s partnering with government, other companies, or colleges and universities, collaboration is a hallmark of Canadian aerospace. In fact, our most recent research shows that across the board, aerospace is much more collaborative than the manufacturing average. Our members partner with universities, colleges, and polytechnics in areas including research (for example, into the “greening” of fuels and structures), early-stage technology development, and training the next generation of aerospace talent.

CM: Why are aerospace manufacturers often early adopters of new materials and methods?

Quick: Early adoption of new materials and processes is essential to staying competitive in the aerospace sector. If an aircraft’s structure or materials are lighter and more aerodynamic, it will consume less fuel and be cheaper to operate, making it a better and more attractive product.

Similarly, adopting processes that allow a company to increase its productivity will enhance their ability to take on larger work packages, adapt to their customers’ needs more nimbly, and scale their business more quickly.

CM: What is the current state of additive manufacturing in the sector, and what do you think its future is?

Quick: There’s no doubt that additive manufacturing is the future. We’re still in the early days and have barely scratched the surface of what it can do. Penetration of this technology in manufacturing will depend on material characterization and the ability to control processes.

Certification, the availability and price of powders and 3-D printers, and the ability of the workforce to master the skills will also dictate the pace at which additive manufacturing will become competitive and will become the norm. But this is something that every manufacturer should be following closely, and they should not waste opportunities to get familiar with this technology as they come up.

CM: What technology advancements will mould the future of the sector in Canada?

Quick: The future of aerospace innovation really is at the intersection of these three realms. Mixed materials, coupled with various additive printing technologies and more powerful and intelligent design software, will really enable the sector to create innovative solutions in manufacturing, which should have a profound impact on business models.

Canada has always been an innovation leader, and the key for our industry will be to continue developing the partnerships, collaborations, and investment opportunities that will ensure these innovations happen here.

Ensuring that government policies and programs better understand, reflect, and support the unique realities of aerospace innovation in the global marketplace will be essential to retaining our competitive advantage and keeping this cutting-edge work in Canada.