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AEROSPACE IN QUÉBEC WE WILL TAKE YOU HIGHER
Companies Employees Sales
215 43,500 $12.1B
2
Montréal is one of the world’s top three aerospace centres, along with Toulouse and Seattle. And it is growing fast!
A World Leader
Small turbine engines Aerospace
telecommunications
Simulation / modelling
technologies
Regional jets
Maintenance and
repair of commercial
and military aircraft
Commercial
helicopters
Military industry Military gear systems
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A Highly Diverse Cluster
Company Specialty Workers
Bombardier Aircraft 15,500
Pratt & Whitney Turbine engines 5,000
CAE Flight simulators 3,500
Bell Helicopter Textron Helicopters 1,950
Rolls-Royce Canada MRO 900
L-3 Communications MRO 880
Esterline CMC Electronics Avionics 825
Héroux-Devtek
Landing gears 815
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Key Players
Source : MEIE, 2013
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Concentration of World Leaders
6
Pre-competitive R&D
Universities
Technology Demonstration Green Aviation R&D
Public Research Centres
Collaborative Organizations
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OEMs
Tier 2-3 & MROs
Sub-contractors
Associations
Academia
Research
Centers
Unions
Aéro Montreal
80% of Québec aerospace production is
exported.
70% of Canadian aerospace R&D is done here.
(Value of over $700 million)
Québec accounts for more than 55% of Canada’s
total aerospace production, and more than 50% of
the Canadian workforce
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Serving The World
9
Expenditures 1 000 000$
Salaries 900 000$
Materials 100 000$
Québec tax credits 14% of salaries 126 000 $
Canada tax credit 15 % of R&D
expenditures
205 350 $
Overhead expenses (proxy) 55% of salaries 495 000$
Expenditures eligible for credit
1 369 000$
Total tax credits 331 350$
Cost to the Company 668 650$
Net Cost of R&D Expenditures
R&D project of $1 million ($900 000 in salaries)
Canada Tax Credit: $ 205,350
Québec Refundable Tax Credit: $126,000
10
+ 33%
Net Cost of R&D Expenditures
106.3
104.9
102
101.6
101.6
100.9
99.9
98.6
97.4
97.1
96.9
95.8
84.1
0 10 20 30 40 50 60 70 80 90 100 110 120
Sydney, AU
Osaka, JP
Frankfurt, DE
London, UK
Seattle, WA
San Diego, CA
Chicago, IL
Milan, IT
Wichita, KS
Toronto, ON
Montreal, QC
Amsterdam, NL
Monterrey, MX
Aerospace – Aircraft Parts (US=100)
11
Comparison of Total Annual Costs
Source : KPMG, Guide to International Business Location Costs, 2013
12
Skilled
Labour
Force + Generous
Incentives
+ Low-Cost
Facilities
+ Easily
Accessible
Sites
4,800+ new
aviation graduates
each year
Financial assistance
available for CAPEX
and workforce
training
Tax credit on R&D
expenditures
Low facility
operating costs
Time zone aligned
with the U.S.
Strong business
ties with
the U.S.
Conclusion
Recommended