Bombardier’s Impact to 2021 Canadian Economic Growth Estimated at $5.7B in GDP says Independent Study
PwC Canada recently released a new independent assessment highlighting the significant economic and social impact of Bombardier’s manufacturing activities in Canada, Québec and Ontario. In addition to Bombardier’s international competitiveness and ESG milestones, the report analyzes the company’s contribution to Canada in terms of:
- Job creation
Results for 2021 show that Bombardier’s total contribution reached $5.7B to Canada’s GDP, and supported 33,276 full-time jobs. This was also the year in which the company completed its transition to a pure play, market-leading business jet company. Bombardier supplied high-value direct jobs in Québec where Canada’s aerospace industry is significantly concentrated. This ranks the company among the largest employers in the province’s manufacturing sector, as well as supporting an extensive network of suppliers from across Canada.
“We’re proud of the significant role Bombardier continues to play in growing high-paying jobs and wealth for Canadians – in the next three years, our strong manufacturing activities will contribute an estimated $25.2B 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% of all the jobs in the province’s aerospace sector. What’s more, these positions are high-value, skilled jobs with an average salary that is nearly 70% higher than the average salary in Québec2,” touted Éric Martel, President and CEO, Bombardier.
Parts manufacturers and suppliers of high-performance alloys are among a broad network of specialized suppliers and subcontractors contributing to Bombardier’s extensive economic footprint. Bombardier spent $1.9B on goods and services provided by suppliers across Canada in 2021. Of these, 400 were located in Québec and 240 in Ontario3.
Aircraft topped the list of exported manufactured products in Québec, at $7.2B or 7.6% of the province’s total export value in 20214. Bombardier was responsible for 70.5% of the value of exported aircraft from Québec.
The study additionally projected that Bombardier would continue to make a strong economic contribution going forward. Demand for business jets is trending strongly upward and as a result, Bombardier is currently forecasting revenues of $8.4B for 2022. This increases to $9.4B in 2025. The company’s total economic contribution1 from manufacturing activities in Canada between 2022-2025 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 are expected to total $3.0B for the period.
The report also noted that Bombardier has played a leading role in developing knowledge, innovation, and expertise which has directly strengthened the Canadian skilled talent pool and the aerospace ecosystem as a whole. This innovation is convincingly showcased in the company’s award-winning flagship aircraft, the Global 7500. Between 2022 and 2025, Bombardier is expected to continue this leadership between 2022 and 2025 with a projected average spending of $150M during this period in R&D activities in Canada.
As if its significant contribution to GDP, high-value job creation, support for a broad network of aerospace suppliers and its leadership in innovation was not enough, Bombardier recently committed to achieving significant milestones in Environmental, Social, and Corporate Governance aimed at fostering sustainable development and the well-being of its employees. Bombardier and the J. Armand Bombardier Foundation have together invested over $38.5M in local communities worldwide between 2016 and 2021,
The PwC Canada report was commissioned by Bombardier. It is available for download on the Bombardier website.
All monetary values are expressed in Canadian dollars.
1 including direct, indirect and induced impacts
2 Institut de la Statistique du Québec, État du marché du travail, 2021. Based on an average hourly wage in 2021 of $28.8, and a workweek of 37.5 hours and 49 weeks of work per year.
3 Suppliers with whom Bombardier transacts $50,000 or more.
4 Industry Canada
5 One “job-year” is defined as a year of full-time employment for one worker.