April 4th, 2022
Bombardier Inc. has often been criticized for being a recipient of federal and provincial largesse in its manufacturing operations. A new assessment of the company by PwC Canada (formerly Pricewaterhouse Coopers) says this perception ignores the company's total contribution to the Canadian economy.
Bombardier spun off its rail division last year, and is now focused on building its Challenger and Global aircraft families. The company has a worldwide fleet of approximately 5,000 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments and private individuals.
"Results for 2021, the year in which the company completed its transition to a pure play, market-leading business jet company, show that Bombardier’s total contribution reached $5.7B to Canada’s GDP, and supported 33,276 full-time jobs," the report says. "In Québec, where Canada’s aerospace industry is significantly concentrated, Bombardier supplied high-value direct jobs, ranking it among the largest employers in the province’s manufacturing sector, as well as supporting an extensive network of suppliers from across Canada.
In the next three years, Bombardier's manufacturing activities will contribute an estimated $25.2-billion to Canada’s GDP and generate more than 37,000 full-time jobs across Canada each year. In Québec alone in 2021, Bombardier supported direct jobs that represented 20 percent of all the jobs in the province’s aerospace sector.
"What’s more," commented Éric Martel, president and CEO of Bombardier, "these positions are high-value, skilled jobs with an average salary that is nearly 70 percent higher than the average salary in Québec."
Bombardier’s economic footprint also encompasses its support for a broad network of specialized suppliers and subcontractors, from parts manufacturers to suppliers of high-performance alloys. In 2021, Bombardier spent $1.9-billion on goods and services provided by suppliers across Canada, of which 400 were located in Québec and 240 in Ontario. After aluminum and before iron, aircraft topped the list of exported manufactured products in Québec, at $7.2-billion, or 7.6 percent of the province’s total export value in 2021. Bombardier was responsible for 70.5 percent of the value of aircraft shipped from Québec.
The study also projected that Bombardier will continue to make a strong economic contribution going forward. With demand for business jets trending strongly upward, Bombardier is currently forecasting revenues of $8.4B for 2022, increasing to $9.4B in 2025. Between 2022-2025, the company’s total economic contribution1 from manufacturing activities in Canada is estimated at $25.2B in GDP (or an annual average of $6.3B), and 150,485 job-years5 (or an annual average of 37,621 full-time jobs). Overall payroll taxes to be collected in relation to ongoing operations would total $3.0B for the period.
