Turbulence and Opportunities for Aerospace: “if we don’t innovate, we won’t make it”

Original article by Chloé-Anne Touma in CScience, translated by Mitacs.

Canada’s aerospace industry, a major contributor to the national economy, faces a complex landscape of geopolitical uncertainties and technological change.In an interview with our editorial team, Hyelim Juliana Kim, National Lead of Aerospace, Defense, Cybersecurity and Life Sciences at Mitacs, highlights the challenges and opportunities in this sector.

Geopolitical headwinds

The imminent threat of tariffs, in particular a potential 25% levy, casts a shadow over the industry. “Canada’s aerospace industry contributes $28.9 billion to the country’s GDP, and accounts for 218,000 jobs,” says Kim, underscoring the importance of the sector. Canada is the second-largest recipient of U.S. aerospace exports, while the U.S. is the biggest market for Canadian aerospace exports. A tariff of this magnitude could disrupt established supply chains, affecting the economy and employment.

Aeronautics represents a $28.9 billion market and 218,000 jobs for our country.

Kim notes that some companies are already laying off staff in anticipation of these tariffs. Unlike the automotive industry, which could face immediate plant closures due to integrated cross-border production, the aerospace sector could experience a slower, but just as significant, decline. The interconnectedness of the American and Canadian economies means that tariffs would be catastrophic.

Talent and innovation offer a lifeline

While much of the trade war discussion revolves around materials and supply chains, Hyelim Juliana Kim highlights the often-overlooked aspect of talent and expertise. Quebec and Canada have a wealth of skilled professionals in fields such as artificial intelligence, compliance, predictive systems, and algorithm development. This expertise is also a valuable asset for the United States.

However, the Mitacs expert acknowledges the existence of a “brain drain”, with many Canadian graduates seeking higher salaries and greater opportunities in the United States. The imposition of tariffs could exacerbate this trend, sending even more talent south of the border.

To counter these challenges, Ms. Kim emphasizes the essential role of innovation. “If we don’t innovate, we won’t make it,” she warns. Diversifying markets and supply chains is essential to reduce dependence on the United States. This is where Mitacs can play a crucial role, connecting companies with academic experts who can advise them on exploring new markets and promoting innovation.

Turning crisis into opportunity

Despite the uncertainties, Kim sees an important opportunity for the Canadian aerospace industry to reinvent itself. “Every crisis can be turned into an opportunity,” she declares, urging companies to seize the moment to innovate and find alternative solutions. Instead of simply exporting raw materials to the U.S. and importing finished products, companies can leverage Canadian talent and expertise to develop innovative solutions and diversify their supply chains.

Kim points out that many small and medium enterprises (SMEs) and start-ups, accustomed to the ease of selling on the U.S. market, are now faced with the daunting task of exploring uncharted territory. Mitacs can provide these companies with the support they need to collaborate with academic experts, explore foreign markets, and develop innovative strategies to stay competitive. “There are a lot of companies now that don’t know where to go and are saying “ok” to new market development. But how do those who have always sold in the U.S. and know nothing else do it? It was easy for them to sell to the Americans. Their customers are based there… “

Greener skies: Sustainability as a driver of innovation

Beyond immediate economic concerns, the aerospace industry is also grappling with the imperative of reducing its environmental impact. As a major contributor to greenhouse gas emissions, the aviation sector is coming under increasing scrutiny.

Hyelim Juliana Kim notes that the industry is actively investing in research and development to reduce its carbon footprint. This includes developing lighter, more efficient aircraft materials to reduce fuel consumption, and optimizing maintenance schedules to minimize waste. By maximizing the service life of aircraft components through real-time monitoring and predictive maintenance, the industry can significantly reduce its environmental impact. “There’s also a lot of research going on into the design of aircraft using lighter, higher-performance materials to use less oil, for example, and also to optimize maintenance, thus avoiding the need to change parts unnecessarily. Because if you don’t optimize a part’s lifespan, you’re wasting money.”

Mitacs promotes collaboration between companies and the academic world. The not-for-profit organization can help SMEs establish partnerships with universities to develop innovative solutions aimed at diversifying their supply chains. Mitacs facilitates research projects in predictive maintenance, where aerospace companies work with university researchers to create real-time monitoring systems. Its internship program has enabled students to put their knowledge to good use at national flagships such as Bombardier, while gaining hands-on experience. At least that’s the case for Kevin Chénier who, after a Mitacs internship, continued his career path with the wind in his sails, eventually joining Bombardier and now flourishing as a professional engineer in the VR/AR (virtual reality and augmented reality) Laboratory, Research and Technology department.

Airlines such as Air Canada, for example, can benefit from the work of talent mobilized through Mitacs with the support of federal and provincial governments, in order to further innovate, optimize their fleets, and reduce operating costs.

So while Quebec’s aerospace industry faces significant challenges, from geopolitical uncertainties to the need for greater sustainability, the sector can weather these turbulent times and emerge stronger and more resilient by focusing on innovation, diversifying markets and leveraging its wealth of talent. Such resilience that will depend on industry’s ability to collaborate with the academic and applied research community, to support this transformation and thrive in.

Mitacs’s programs receive funding from multiple partners across Canada. We thank the Government of Canada, the Government of Alberta, the Government of British Columbia, Research Manitoba, the Government of New Brunswick, the Government of Newfoundland and Labrador, the Government of Nova Scotia, the Government of Ontario, Innovation PEI, the Government of Quebec, the Government of Saskatchewan, and the Government of Yukon for supporting us to empower Canadian innovation. 

Do you have a business challenge that could benefit from a research solution? If so, contact Mitacs today to discuss partnership opportunities: BD@mitacs.ca.