2019 Perspective Advanced Manufacturing & Aerospace

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SAULT STE. MARIE, ONTARIO

Strategically located at the heart of the Great Lakes, on the USA border with Michigan, Sault Ste. Marie offers a lower cost of doing business, access to quality talent and expertise as well as affordable land and real estate.

We ranked in the top 10 globally for competitiveness in the 2016 KPMG Competitive Alternatives Study, and we offer access to government incentives for manufacturing, technology, innovation, infrastructure and more.

We are home to advanced manufacturing and industry such as Algoma Steel, Tenaris Algoma Tubes, Arauco North America and the headquarters of the Ontario Lottery and Gaming Corporation.

With our renewable energy production, Canada’s first communitywide smart grid and largest battery storage project underway, Sault Ste. Marie will offer the most reliable, resilient and cost competitive energy in Ontario.

10 minute commutes. 15 minutes to nature. Modern facilities and infrastructure.

Work. Life. Balance.

 For information contact Nevin Buconjic at n.buconjic@ssmedc.ca 705.759.5928

www.investsaultstemarie.com

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Canada Continues to be a World Leader in the Advanced Manufacturing and Aerospace Industries Why You Can Expect Growth and Plenty of Opportunities for Investment

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f you are looking for clues about the economic prospects of a country, look to its advanced industries, especially manufacturing and aerospace.

Though these may account for a relatively small portion of a nation’s employment, they often make up a significant share of its exports as well as research and development. Because these industries are so economically powerful, discerning investors treat them as key indicators of a country’s overall financial health and future potential.

Canada Continues to be a World Leader …and That’s Not Likely to Change!

For years now, Canada has remained a powerful global force in advanced industries, especially manufacturing and

aerospace. According to a report from Brookings, approximately 1.9 million Canadians were employed in advanced industries in 2015 (11 percent of the county’s employment). The report goes on to explain that “from this relatively small share of jobs, however, advanced industries generated 17 percent of Canada’s GDP, 61 percent of national exports, and 78 percent of research and development.”

The proof of Canada’s strength in advanced industries is demonstrated by the share of employment these industries take up in the nation’s metropolitan areas when compared to other North American locations.

According to Brookings, though San Jose leads the continent in this metric, the next four leaders are all Canadian cities — Calgary, Windsor, Kitchener-Waterloo and Saguenay.

These numbers not only demonstrate the country’s

global competitiveness, but also show how deeply ingrained advanced industries are in the national identity.

Canada has always been proud of its strong industrial legacy which, when combined with a stable economy and highly educated workforce, solidifies its strength and growth in both output and research and development.

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1464 Cornwall Rd, Suite 5, Oakville, Ontario, Canada L6J 7W5 1-866-779-7712 info@perspective.ca www.perspective.ca Publisher, CEO: Steve Montague Vice-President: Ed Martin PerspectiveTM Advanced Manufacturing & Aerospace was produced independently of the Government of Canada and Industry Canada. Contents are copyrighted and may not be reproduced without the written consent of Perspective Marketing Inc. The publisher is not liable for any views expressed in the articles and opinions do not necessarily reflect those of the publisher or the Government of Canada and Industry Canada.

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The Canadian Aerospace Industry is Lifting Off As demonstrated by a Government of Canada report on the state of Canada’s aerospace industry for 2018, the nation has seen promising growth and development. There has been a positive five-year growth in its GDP (+6 percent) and jobs (+2 percent) which contributed to the Canadian economy nearly $29 billion dollars and 85,600 directly employed Canadians. Furthermore, internationally, Canada consistently ranked in the top five countries across various subsections of the aerospace industry based on final production.

The full report showed an industry that is not only growing but is also pushing its frontiers to evolve and develop with the changing times. An overall drive for innovation and inclusivity lays a foundation for healthy, long-term growth of aerospace in Canada.

Advanced Manufacturing & Aerospace

3 Reasons to do Business in Canada • Favourable tax rates: According to Deloitte, Canada has one of the lowest corporate tax rates in the world at 15 percent, and by all indications, this may go down further. In addition to this, there are numerous government incentives to increase business investment which can be easily capitalized on.

• Skilled workforce: The Organization for Economic Co-operation and Development (OECD), shows that Canada ranks second in the world for 2534 year-olds with a tertiary education (61 percent), offering companies access to a valuable pool of young, skilled workers.

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• Strong connections and supply chains: Though Canada is geographically large, its advanced industries are primarily clustered around several relatively small areas with close access to the United States. This offers businesses looking to expand to the country, incredible access to an already well-connected pool of suppliers and manufacturers with a supply chain that has seen consistent growth over the past years.

Investors looking to expand to other countries need look no further than Canada.

With a stable economy, strong workforce, breadth of government incentives and an already powerful advanced industry which has seen steady growth, there is no better frontier than this to explore.

GUIDE TO ECONOMIC DEVELOPMENT IN CANADA Prince Edward Island

Newfoundland and Labrador

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Manitoba

Saskatchewan

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Nunavut

Alberta

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British Columbia

Ontario

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Yukon

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New Brunswick

Northwest Territories

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Nova Scotia

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Quebec

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Canada’s Collaboration connecting the Aerospace Industry and Research Consortium for Aerospace Research and Innovation in Canada (CARIC)

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he Consortium for Aerospace Research and Innovation in Canada (CARIC) creates conversations and connections within the aerospace industry.

The CARIC will help with financial support to help launch R&D projects within the industry.

For those in the aerospace industry and are planning for future growth, optimizing manufacturing supply chains, or reviewing current costs – Canada should be on all lists for expansion, start-up or re-location.

Canada finished second in the 2018 Aerospace manufacturing attractiveness rankings report by PwC. PwC, a global company providing industry-focused services for public and private clients, outlines in their rankings that the demand for aircraft continues to be strong in most regions of the world, but especially in rapidly growing markets in Asia-Pacific.

This region, with a burgeoning middle class and a large and growing population, offers significant opportunities for aircraft manufacturers and can drive both international and domestic expansion. The full report can be found at www. pwc.com/us/en/industries.html.

PwC reports that Canada has a similar aerospace profile to the US, with an educated labor force, stable government, relatively low costs, and excellent infrastructure.

In 2017, the industry contributed close to $25 billion to the Canadian economy and employed almost 190,000 people.1 Over the last five years, the aerospace industry has become an increasingly important part of the economy, supported by global demand for Canadian exports. Canada is especially active in the production of civilian flight simulators, business and regional aircraft, and turboprop and helicopter engines.

CARIC and it’s provincial associations collaborate giving the aerospace industry a regional reputation, a robust global presence, and international market attractiveness.

When looking at Canada as a location to expand an Aerospace firm, CARIC is a key organization to connect with. It acts as a catalyst of innovation, pushing boundaries for the future of aerospace research, development, and technology adaptation.

http://caric.aero/ Invest in Canada info@invcanada.ca www.investcanada.ca 1. “State of Canada’s Aerospace Industry 2018 Report.” Government of Canada.

21 June 2018.

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Advanced Manufacturing & Aerospace

Discover Kawartha Lakes’ powerful advanced manufacturing and aerospace sector

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awartha Lakes has always been famous for its stunning landscape and small-town feel. A favourite destination for tourists, cottagegoers and Torontonians alike, this area is home to a creative energy and reinvigorating connection to nature which makes it an incredibly desirable place to visit, live or work in.

Kawartha Lakes has more than 250 lakes. The vast majority of local manufacturers can travel to a lake, have lunch and get back to work within 30 minutes.

There’s a tangible creative energy and sense of renewal in the air, especially in towns like Lindsay, Coboconk, Norland, Omemee, Fenelon Falls and Bobcaygeon.

The vibrant art and culture scene further adds to the appeal of Kawartha Lakes. Suburban tract housing and strip malls may not fit the lens of creativity but, the abundance of lakes, forests and small-town charm certainly does!

Belair Mechatronics

What may come as a surprise to some is the area’s booming advanced manufacturing and aerospace sector. This sector has seen countless success stories in recent years, such as Kawartha Dairy, Mariposa Dairy,TS Manufacturing and Horizon Aircraft.

With over 160 manufacturing companies and a total of over $250,000,000 in annual sales, Kawartha Lakes has added these sectors to its already extensive list of attractions.

As part of the feature for the area, we’ve chosen two companies at the top of their game, one new, one established, to highlight some of the incredible opportunities the municipality has to offer.

Belair Mechatronics: On the bleeding edge of manufacturing innovations Belair Mechatronics is a small manufacturing enterprise located in Omemee. The company chose their location because of the short distance between Lindsay

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and Peterborough, with a close proximity to the Greater Toronto Area (GTA). Their focus is on the design and manufacturing of hydraulic manifolds (and other fluid power components) as well as robotic auxiliary equipment.

The company is developing a plan to commercialize manufacturing innovations in the form of software and specialized robotics accessories.

At the forefront of industry 4.0—“smart-factories”—their products are manufactured on 5-Axis machinery with the latest cutting tool technologies.

Belair’s advanced equipment is interconnected to enable true data driven monitoring and process optimization.

They strive to be both competitive and socioenvironmentally conscious, where environmental sustainability trumps profitability. To ensure accountability, Belair Mechatronics adheres to the Triple Bottom Line (TBL) framework (social, environmental and financial).Their mission is to raise the bar of innovative hydraulics from the simplest 2-port header junction return manifold block to fully profiled 5-axis pump, motor covers and cylinder components, ecomanufacturing technologies and socially responsible business practices to reduce the overall negative impacts of the hydraulics and general manufacturing industry.

Belair Mechatronics has been successful in creating high value jobs for the local community and attracting skilled, diverse STEM employees to relocate.

The company aims to improve business sustainability for the local economy by creating high value jobs in advanced manufacturing, software development, R&D and engineering for their community, while boosting global competitiveness and exports.

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Cameron Steel: 40 years of quality earns an impeccable reputation Cameron Steel Inc. began their operations in Lindsay, Ontario, in 1975 and has continued to build a strong reputation by providing customers with quality workmanship in the production of custom steel products to their specific requirements, while responding quickly to clients’ lead times at competitive prices.

Cameron Steel prides itself on offering extensive industrial machining, fabrication and rubber lining services. They cater to larger and heavy parts in the mining, industrial and nuclear sectors, with extensive experience and know-how.

Their 75,000 square foot facility includes plate burning, 750-tonne brake and shear, large CNC mills and vertical lathes, an 84” × 35’ lathe as well as 20 × 30 paint and blast booths.

Cameron Steel also makes large building maintenance cranes for the top of skyscrapers or high rises. They have a CNC coordinate measuring machine for part verification after manufacturing, to ensure the consistency of high quality in the parts leaving their facility.

They also offer a rubber lining process, which was added to improve on customer lead times by removing the need for outsourcing.

Advanced Manufacturing & Aerospace

For over 40 years, Cameron Steel has provided customers with knowledgeable and trustworthy service and continues to look forward in assisting clients for all their machining and fabricating needs.

Top reasons why companies choose Kawartha Lakes Well positioned Only a 90-minute commute northeast of downtown Toronto and Pearson International Airport, Kawartha Lakes is perfectly placed for companies who want to capitalize on lakefront living and benefit from the vast network of resources offered by the GTA. With the completion of the highway 407 extension in 2020, accessing these opportunities will be even easier.

Skilled workforce

A land of endless opportunities Whether you are a business looking for the perfect location and a strong network of other companies in your sector, or a potential customer searching for unparalleled opportunities and competitive prices, Kawartha Lakes boasts endless opportunities in the advanced manufacturing and aerospace sectors. Discover more online or take a trip to one of the top tourist destinations in Ontario. This is Kawartha Lakes time. Jump in to the Kawartha Lakes lifestyle!

Kawartha Lakes Economic Development Toll Free: 1-866-397-6673 www.kawarthalakes.ca Cameron Steel

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With Fleming College, Durham College, Trent University and Ontario Tech University close by, companies looking to employ highly-skilled workers will find no shortage of graduates seeking a place to apply their talents.

Happiness and livability Not only does Kawartha Lakes host a strong network of companies, but it also offers a community and lifestyle setting that promises a quality of life and happiness for employees and business owners. With a unique big city size in combination with small town charm, the municipality of Kawartha Lakes offers the best of both worlds, with numerous charming towns nearby and all the cultural offerings of a metropolitan area.

Middlese

Marks the Spot for Success

Newbury • Southwest Middlesex • Adelaide Metcalfe • Strathroy-Caradoc • North Middlesex • Lucan Biddulph • Middlesex Centre • Thames Centre

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Middlesex County is sparking a lot of investment interest these days.

Middlesex is a rich rural-urban landscape in the heart of southern Ontario, and boasts all the must haves for manufacturers looking to expand or upgrade facilities:

Savvy corporations are already investing, building and benefiting from the outstanding opportunities in Middlesex.

The county’s most recent Ontario Investment Ready Certified Industrial Site (Glencoe) follows two other municipally owned sites that have undergone the same rigorous process. Companies primed to locate here can be confident that the upfront work of gathering property information; mapping; and completing the environmental, heritage, archaeological and species assessments will reduce risk and advance their construction.

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Trucking – Reliable transportation connections keep products and services rolling down the 401 and 402 highways to destinations across the globe. U.S. deliveries from Middlesex have three border crossing options (Detroit/Windsor, Port Huron/ Sarnia and Buffalo/Fort Erie) all within a two-hour drive.

Train – Both Canadian National and Canadian Pacific Railways crisscross the county.

Airplane – London International Airport is extremely convenient for cargo and people.

Freighter – Port access to shipping channels in the Great Lakes is only sixty minutes away.

Wrapping around the city of London (pop. 400,000+), Middlesex County has a growing population of over 71,500 residents. This proximity to Canada’s 11th largest market gives manufacturers access to established economic sectors. Also on the doorstep, are two large educators: Western University and Fanshawe College. Both institutions rank as leaders in research and public/private partnerships, while graduating more inventive and skilled potential employees eager to start their careers. In addition, Stats Canada markers (2016) identify Middlesex residents as possessing education levels higher than the national average.

Great companies will be in great company

It’s a Wonderful Life

The county’s economic development plan is perfectly suited to manufacturers looking to put down roots in one of its many business parks. Site ownership is a mix of private and municipal and the steady growth of new investment speaks volumes about how firms are responding to what they find.

Short commutes, traffic that moves, fresh air, safe spaces, many active living options, and access to world-class healthcare are just part of the Middlesex appeal. There’s also the county’s rich offering of arts, entertainment, and culture and that create an amazing quality of life for families of all types.

Now that’s an idyll.

✔ Prime location ✔ Affordable land prices ✔ Educated workforce ✔ Multi-level government support ✔ Desirable quality of life

Manufacturers already on board include Armatec Survivability (DaVinci Park), Catalent (Molnar Park), Ideal Pipe, Algonquin Bridge (Thorndale Park), and Dashwood Industries, has just announced the moving of its window & door showroom and manufacturing operation to Adelaide Metcalfe. Each company has its own reasons for making Middlesex home but the municipality’s business-friendly approach definitely comes into play.

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The highway to investment success leads to Middlesex County.

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2019-07-03 3:27 PM

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Connecting Canada’s Tech Strengths to the Manufacturing Sector Innovation Initiative Supercluster. A $950-million investment makes Canadas even more globally competitive. NGen leads the Advanced Manufacturing Sector.

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anada’s Advanced Manufacturing Supercluster is led by Next Generation Manufacturing Canada (NGen), an industryfocused, not-for-profit corporation dedicated to positioning Canada as a world leader in advanced manufacturing capabilities.

The Supercluster will connect manufacturers and technology companies to accelerate the development, adoption, and scaleup of transformative capabilities in Canadian manufacturing.

The Supercluster aims to strengthen the competitiveness of Canada’s manufacturing sector, drive more innovation and investment in advanced manufacturing technologies

in Canada, generate new commercial opportunities for Canadian companies in global markets, grow more largescale world-leading Canadian enterprises, and develop a modern and inclusive workforce with the skills to excel in advanced manufacturing.

NGen will invest $192 million of Supercluster funding in collaborative industry-led projects before the end of March 2023.

Supercluster projects must be: • Transformative, involving the development of technological capabilities with the potential to confer a significant global competitive advantage to Canadian industry;

• Applied, supporting later stage technology and manufacturing readiness with potential to generate significant long-term commercial and economic benefits, including jobs maintained and created; • Collaborative, attracting the participation of industry partners, especially small and medium-sized enterprises (SMEs); and, • Enduring, leaving a legacy in skills development, tools, testbeds, intellectual property, business knowledge for Canada’s advanced manufacturing ecosystem.

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Next Generation Manufacturing Canada Who is Eligible to Apply?

Any member of the Advanced Manufacturing Supercluster may submit an application for project funding or apply to be considered as a partner or coinvestor in Supercluster projects.

Recipients of Supercluster funding must be incorporated in Canada.

They must be either for-profit organizations, or not-for-profit organizations that facilitate and fund research and development and whose funding is received primarily from private-sector organizations.

Other publicly funded not-for-profit organizations, post-secondary institutions, federal Crown corporations, and government departments or agencies are not eligible to receive Supercluster funding directly, although they may

bring their own contributions to projects or be sub-contracted by funded recipients to carry out project activities.

International organizations (offshore companies and research organizations without an incorporated presence in Canada) may also participate in Supercluster projects, but any project activity undertaken by these organizations will not be eligible for Supercluster funding.

175 Longwood Road South. Suite 301, Hamilton, Ontario, Canada, L8P 0A1 www.ngen.ca

All Editorial on this page sourced from Next Generation Manufacturing Canada website found here www.ngen.ca

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Advanced Manufacturing in Canada’s Best Place to Live With access to global markets, world class talent and industry-leading innovation, it’s no wonder top manufacturers like Ford Motor Company, Collins Aerospace, and Promation have chosen to call Oakville, Ontario home.

Major sub-sectors:

Businesses in the sector:

Automotive

Nuclear

Aerospace

Clean tech

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Oakville workforce in sector:

8,020

Emerging sub-sector: Additive (3D printing)

To learn more about manufacturing in Oakville, visit investoakville.ca.

Source: Statistics Canada. June 2018.

Canadian Business Counts, Total with Employees

Economic Development Office investoakville.ca @Invest Oakville

Invest Oakville

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Manufacturing Innovation in Oakville

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dvanced manufacturing represents an important part of the economy in Oakville, with companies who are world-class leaders in product advancement. Ford Motor Company opened its Canadian headquarters and assembly plant in Oakville in 1953 and remains the town’s largest employer for over 65 years. As an inventorled company, Ford was an early adopter of additive manufacturing bringing innovative products to market.

Also referred to as 3D printing, additive manufacturing is a faster, and more environmentallyfriendly manufacturing process.

The technology has broad applications spanning several of Oakville’s key sectors, including automotive, aerospace, energy, industrial and healthcare.

According to the National Sciences and Engineering Research Council of Canada, additive manufacturing is forecasted to grow fivefold by 2020, with the market identified as a priority area of innovation and job growth for the Canadian economy.

In Oakville, significant additive manufacturing activity is underway. Private and public sector investment, collaboration and industry partnership are signaling the emergence of a cluster of expertise in this area of advanced manufacturing. Three examples are Oakville-based companies, Burloak Technologies, Javelin Technologies and Promation.

Centre of Excellence

Burloak Technologies, a division of Samuel, Son & Co. opened a 60,000 square foot stateof-the-art facility specializing in additive manufacturing.

The Centre of Excellence was established to help companies adopt additive manufacturing processes from concept through to design and production.

“Additive manufacturing is a rapidly developing technology that creates much lighter, stronger parts while reducing costs by consolidating multiple manufacturing steps into a single process,” said Peter Adams, President and Co-Founder of Burloak Technologies.

Company collaboration

Javelin Technologies established an integrated partnership with Cimetrix Solutions. The partnership combines the specialization of both firms to improve service to the 3D printing market and better positions both companies for growth. By coordinating services, the companies can provide support to manufacturers through their newly expanded industrial 3D printing lab.

Industry network partnership

Promation joined Canada Makes, a network of private, public, academic and nonprofit entities dedicated to promoting the adoption and development of advanced and additive manufacturing

in Canada. The company also partnered with the University of Waterloo’s Multi-Scale Additive Manufacturing Lab to develop the next generation of additive manufacturing processes.

Canada’s best place to work

Additive manufacturing will play a key role in supporting the sustainability of the town’s advanced manufacturing base, enhancing the supply chain locally and providing an opportunity for companies to innovate and grow.

Oakville provides companies with a strategic location in the Greater Toronto Area, easy access to transportation networks and one of the most educated workforces in Canada. Celebrated

by MoneySense Magazine as Canada’s Best Place to Live, Oakville can also be thought of Canada’s best place to work.

To learn more about investment opportunities in Oakville, visit investoakville.ca.

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Manufacturers – Build Your Future in Manitoba!

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here is no question that advanced manufacturing plays an important role in Manitoba’s economy. Our diversified manufacturing industry produces everything from aerospace equipment, buses, tractors and machinery, to food products, pharmaceuticals, industrial chemicals and much more. Manitoba is home to scores of companies that produce billions of dollars in products shipped across North America and around the globe.

In the last 20 years, Manitoba’s manufacturing output has increased nearly 80 per cent – twice the growth experienced in manufacturing centres in eastern Canada.

Manitoba is the headquarters for North America’s largest manufacturers of buses (New Flyer Industries and its subsidiary, Motor Coach Industries), Canada’s largest manufacturer of harvesting equipment (MacDon Industries) and Canada’s only manufacturer of tractors (Buhler Versatile).

Our state-of-the-art aerospace industry is the largest in Western Canada, led by global companies: Boeing Technology Canada, StandardAero, and Magellan Aerospace. Manitoba is Canada’s third largest exporter of pharmaceuticals, with operations for Pfizer Canada,Valeant Pharmaceuticals, Medicure, Apotex Fermentation, and the headquarters of Vita Health Products. Food processing is well established here, with operations of global leaders like Maple Leaf Foods, McCain Foods, Simplot Canada and Roquette.

Manufacturers and processors work closely with universities, colleges and research institutes

to develop new technologies.

For example, Winnipeg’s Composites Innovation Centre works with companies in the areas of aerospace, ground transportation, civil infrastructure and biomaterials.

It also manages global consortia exploring new technologies and materials.

People are often surprised to hear that approximately 85 per cent of the world’s new large commercial aircraft developmental engines are tested in Manitoba before they are certified for flight.

General Electric, Pratt & Whitney, and Rolls-Royce – the world’s largest aircraft engine manufacturers – have invested over $100 million in testing facilities in Manitoba.

The most recent exciting development is the current planning by the National Research Council of Canada to establish a facility in Winnipeg to be the headquarters for its Advanced Manufacturing Program, a national initiative to support the development of advanced manufacturing technologies for Canadian industry. The program is national in scope and will focus initially on the aerospace and automotive industries.

In addition to the Winnipeg flagship facility, the program will operate in Montreal, Ottawa and London.

The future is bright for manufacturing in Manitoba.

If you’re a manufacturer contemplating an expansion or location decision, you owe it to yourself to have a look at Manitoba.Visit www.investinmanitoba.ca today.

The GE Aviation Test Research and Development Centre (TRDC) in Winnipeg

Exterior of GE Aviation’s TRDC

GE Aviation’s TRDC Icing Tunnel in Action The Global Aerospace Centre for Icing and Environmental Research (GLACIER) test facility in Thompson – a joint venture between Pratt & Whitney Canada and Rolls-Royce Canada.

Exterior of GLACIER facility

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Canada is one of the top 10 light automotive manufacturing countries in the world Canada’s Automotive Industry Bouncing Back to a Future of Growth and Innovation—Supported by Government Initiatives and Big Investments

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he past few years certainly have not been easy for Canada’s side of the Great Lakes automotive manufacturing cluster. Factory closures, relocations, and an increasingly unstable trade relationship with the United States under the Trump administration have left many concerned that the once booming industry may be on the decline. However, many shrewd investors, business people, and politicians have begun to see the current situation as an exciting opportunity to transform this struggling area into an international powerhouse of innovation and manufacturing.

Though Canada is one of the top 10 light automotive manufacturing countries in the world, most of the vehicles and parts it produces are exported to the United States. In a recent interview with Automotive News Canada, Canada’s Federal Minister of International Trade Diversification, Jim Carr, put Canada’s automotive exports to the United States at 97 percent for vehicles and 90 percent for parts produced. Though this relationship has historically been very beneficial to the Canadian auto industry, recent trade instability — including NAFTA’s

replacement, the USMCA, as well as factory closures and relocations — have sent shockwaves throughout the industry.

Big Changes Are Coming Both Canada’s government and industry insiders know that if the automotive sector wants to survive, it needs to diversify by looking overseas and finding new trade partners to do business with. As part of this initiative, in November of 2018, the federal government unveiled a $1.1 billion package aimed at helping producers in all sectors to find new export opportunities overseas during the next six years. Additionally, companies are leveraging the CanadaEuropean Union Comprehensive Economic and Trade Agreement (CETA) to increase exports.

“In only 14 months, Canada has increased its consumer base within a free-trade zone of 1.5 billion people,” said Carr to Automotive News Canada. “That’s extraordinary. We are the only G7 nation with a free-trade agreement with the other six.”

Here are some more promising changes happening in the market: • EU export increase: According to information cited by CBC, in a relatively short amount of time, Canada has already seen an increase in motor vehicle and parts exports to the EU amounting to 96 percent, which is expected to grow still further as car tariffs in the region are relaxed over the coming years.

• Toyota’s investment: Toyota Canada recently announced it will be investing $1.4 billion to construct a flexible production platform near Toronto in order to build their NX model.

While it remains unclear if this will lead to further jobs, the move stands to pump hundreds of millions of dollars in contracts into the industry.

• Big tech is moving in: Not only are international automotive companies choosing to do business in Canada, but so are global tech giants such as Uber, Google and Nvidia who bring with them some of the best minds in autonomous vehicle research and development.

Newcomers likes the ones mentioned here, promise to boost Canadian innovation and put the country at the frontier of motor vehicle development.

Though the headlines may still not seem too positive, all the indicators show that Canada’s automotive industry is poised to develop into a global leader of not only manufacturing but also cutting-edge research and development. With some of the largest international OEMs and tech companies bringing money, talent and employment into the country, supported by a strong government backing and financial incentives, there has never been a better time to do business with Canada’s auto industry.

Learn why Mississauga is the #1 Aerospace cluster in Canada.

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Aerospace and Advanced Manufacturing in Mississauga

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ississauga has a long and storied tradition of aerospace manufacturing. From the Lancaster built by Victory Aircraft to the Avro Arrow, Canada’s first supersonic aircraft, the city has demonstrated its leading edge capabilities in manufacturing aircrafts. In 2019, it is no different as Mississauga continues to develop world class products for blue chip clients from around the world.

Mississauga has a strong and diversified aerospace cluster.

The city is home to over 40 direct aerospace manufacturers and another 140 companies that provide services to aerospace manufacturing.

The growth rate of aerospace manufacturing in Mississauga has outpaced all other jurisdictions in Canada in the last five years. The entire aerospace community includes over 345 aerospace companies with more than 28,000 employees. Six Fortune 500 Aerospace companies have a Canadian or Regional Head Office in Mississauga. fDi Magazine recently ranked Mississauga number two globally for Innovation and Attractiveness in its Aerospace Cities of the Future ranking. The city also ranked number two in the world for its aerospace strategy. The City of Mississauga’s Advanced Manufacturing Business Integrator, working out of their Economic Development Office, works directly with aerospace companies on workforce development, productivity, technology adoption, businessto-business connections, supply chains, and export market development.

Mississauga companies touch all parts of an airplane. Every major aerospace OEM has work done by companies located in Mississauga.

Mississauga’s components manufacturers include worldclass companies such as Cyclone Manufacturing and Pirlitor.

Pratt & Whitney Canada exemplifies the standard of excellence demonstrated by Mississauga companies in engine design, manufacturing, and testing. Magellan also has tremendous engine competence applied to both commercial and defense markets. MHI Canada Aerospace demonstrates innovative assembly proficiencies at its facilities near Pearson International Airport, also located in Mississauga.

Mississauga demonstrates topclass competencies in aerospace engineering and avionics.

Aversan and Honeywell are two companies that perform product development, system integration, test automation, and independent verification and validation.

Maintenance, Repair and Overhaul is another aerospace sub-sector at which Mississauga excels. Companies including Field Aviation provide modification and parts manufacturing to a number of aircraft programs. Utex Scientific

Instruments provides leading non-destructive evaluation methodologies to a number of blue-chip aerospace clients.

Several Mississauga manufacturers have adopted Industry 4.0 technologies including digital twinning, automation, and robotics in the development of components and systems for the aerospace industry. Companies such as Pratt & Whitney and MHICA have developed highly regarded in-house training programs for their employees.

A significant percentage of products and systems manufactured by Mississauga companies for the aerospace sector are destined for the export market. As global aerospace clients continue to discover the high-quality and innovative products being developed by Mississauga manufacturers, the demand for products made in the city will increase the volume of aircraft parts, systems, and assemblies shipped around the world.

For more information, visit us at: www.thefutureisunlimited.ca/ advanced-manufacturing Walter Garrison, Advanced Manufacturing Business Integrator walter.garrison@mississauga.ca Phone: 905-615-3200 ext. 3054

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Sault Ste. Marie: Canada’s Frontier for Advanced Manufacturing and Aerospace Strategic Location.

Cost Competitive.

Superb Quality of Life.

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ault Ste. Marie is a city built on a long, proud history of manufacturing and harnessing the area’s abundant natural resources.

The community’s legacy as a hub for industry and trade endures to this day with a highly developed advanced manufacturing sector, cutting-edge forest research, world-leading lottery and gaming expertise with the Ontario Lottery and Gaming Corporation, as well as a rapidly growing smart energy sector.

The city’s strategic location at the US border allows for

easy access to shipping and transportation via the Great Lakes, Trans-Canada Highway, I-75 in the USA, rail and air.

Its close proximity to the Port of Algoma (Algoma Docks), which offers a deep sea port for shipping and receiving marine cargo, provides access to global markets and 60 million North American customers within only 500 miles. Companies have access to various government incentives for manufacturing, technology, innovation, training, site acquisition and infrastructure – supporting continued growth.

Work, Live, Learn

Sault Ste. Marie is a growing and vibrant community with endless four-season

destination activities. With affordable living and a close-knit community, employees can live in their ideal neighbourhoods while enjoying short commute times and access to plenty of family activities, providing a healthy work-life balance.

Ranked 10th globally for competitiveness (KPMG 2016 Competitive Alternatives study) Sault Ste. Marie holds boundless opportunity for growth and development.

The area is home to Algoma University, Sault College and Lake Superior State University (Sault Ste. Marie, Michigan), giving employers access to a wealth of newlytrained professionals and skilled workers at competitive labour costs.

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Advanced Manufacturing & Aerospace

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Advanced Manufacturing

Sault Ste. Marie’s history is manufacturing, forest products and steel. These are the sectors that built the city and remain its backbone. Playing host to anchor companies such as Algoma Steel, Tenaris Algoma Tubes, Arauco and EACOM, with the support of many local manufacturing service and supply companies, there are endless resources and opportunities available for businesses looking to join a thriving industry.

Here are some of the advantages in choosing Sault Ste. Marie as the new home for your business: • The largest manufacturing workforce in Northern Ontario • Established expertise and proven supply chain for manufacturing and industry • Skilled trades training, R&D and robotics at Sault College • Robotics engineering expertise, and product development center at Lake Superior State University • The lowest cost energy in Ontario following the completion of Canada’s first community-wide smart grid and the largest battery storage project in the country • Shipping access to rail, water, road and air • Affordable land and business costs

Aerospace and Aviation

Sault Ste. Marie is home to a strong and growing aerospace and aviation industry. Local companies such as JD Aero, Springer Aerospace and Humphrey Aircraft Services provide a full suite of maintenance, repair and overhaul services for airlines around the world.

The Ministry of Natural Resources & Forestry (MNRF) provides aviation flight and maintenance services to its fleet of firefighting aircrafts at the Sault Ste. Marie Airport.

The city also boasts a growing defense sector, including steel fabricators and other companies

having controlled goods certifications. Algoma Steel is the only armored plate supplier in Canada, and also supplies marine plates for the defense sector.

Here are some of the unique advantages offered to the aerospace and aviation industry by Sault Ste. Marie: • Over 1,000 acres available for development at the Sault Ste. Marie Airport • Complete MRO (Maintenance, Repair and Operations) solutions • A recognized and accredited flight training program at Sault College • Top-notch flight simulators at the MNRF and Sault College • MNRF aviation service hub for firefighting aircrafts See how Sault Ste. Marie’s advanced manufacturing and aerospace sector benefits from our strategic location, competitive business costs and superb quality of life!

Find out why Noront Resources chose to invest $1 Billion here. Visit www.investsaultstemarie.com.

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Advanced Manufacturing & Aerospace

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Manufacturing Excellence Sheridan’s Centre for Advanced Manufacturing and Design Technologies (CAMDT)

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esearch and industry training activities at CAMDT are overseen by the Sheridan Multidisciplinary Applied Research Team (SMART), a research group encompassing faculty members from the School of Engineering.

These applied research and consulting projects can take the form of a three-to four month, curriculum-based (capstone) project, or a project that is funded through federal, provincial or municipal governments and can extend from six months to several years.

In CAMDT’s 28,000square-foot manufacturing facility, small-and medium sized enterprises (SMEs) can collaborate with Sheridan’s teams of students, faculty researchers and technologists to develop innovative solutions that can have a significant impact on their business in a matter of months.

Mission: To produce highly qualified graduates who will meet the current and future needs of the manufacturing sector, and to provide local SMEs access to advanced manufacturing expertise and state-of-the-art resources.

Research Areas: Additive manufacturing (3D printing) and rapid prototyping; sustainable energy systems; plant layout/efficiency; robotics and automation systems.

Facilities • Integrated Energy Systems Laboratory (IESL) provides students with opportunities to experiment and initiate applied research in emerging areas such as energy systems, on-demand renewable electricity production, and distributed energy generation.

• CAMDT – Product Innovation Centre features state-of-the-art additive manufacturing equipment provided by Cimetrix.

Local SMEs can learn how to best leverage additive manufacturing to support their product development initiatives by producing advanced prototypes, manufacturing tools and even final end-use parts.

• CAMDT – ABB Robotics Centre, featuring 18 robots provided by ABB with capabilities including: welding; picking, packing and palletizing; machine tending, material handling and product assembly; and advanced vision-related programming.

• CAMDT - Siemens Mechatronics Lab supports the Mechatronics Systems Certification Program (SMSCP), a comprehensive industry skills certification. A central theme in the SMSCP is the System Approach, a special set of teaching and learning methods developed over 25 years in Siemens’ technical schools in Germany.

• 23: Percentage of the labour force in Brampton, Ontario that works in advanced manufacturing • 28,000: Square feet of space available at CAMDT for R&D projects

• $10 million: Investments to date from Sheridan, the City of Brampton, the Ontario Ministry of Economic Development and Trade and industry to support CAMDT’s sustainability • $490,000: Amount received in federal and provincial funding for applied research • 70: Number of CAMDT private-sector partnerships since 2012 • 1,500: Number of students that learn about CAMDT’s equipment every year If you are looking to create a partnership with Sheridan with a manufacturers or industry collaboration we invite you to explore Sheridan’s highly specialized manufacturing and design equipment.

Centre for Advanced Manufacturing and Design Technologies Room C174 Sheridan College Davis Campus 7899 McLaughlin Road Brampton, Ontario, Canada L6Y 5H9 Dr. Michelle Chretien Director, CAMDT Faculty of Applied Science and Technology 905-459-7533, ext. 8533 michelle.chretien@ sheridancollege.ca

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Advanced Manufacturing & Aerospace

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Kingston Leads Advanced Manufacturing

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anada is leading globally in Advanced Manufacturing and is continuing to grow due to heavy investment in research and development, tax rates, scores of trade agreements, and infrastructure. Over the last three years, Kingston’s manufacturing sector expanded at a healthy average annual rate of 2.6 per cent and has been lately an eyecatcher for many International businesses looking for a growth and expansion opportunity.

Many international companies have chosen Kingston as a strategic area to launch and expand their Research & Development facilities. One business that recently decided to call Kingston home is the Portuguese food processor, Frulact Group. Frulact is known globally for their fruit based preparations for application in the dairy, icecream, beverages, and industrial pastry markets. Frulact CEO, Joao Miranda expressed how successful their journey has been since choosing Kingston to open their plant, “We are very pleased to announce that we have chosen the City of Kingston, Ontario to receive our new international production plant of fruit preparations, which will serve as a platform to the NorthEast American market. The capacity to attract foreign investment shown by the City of Kingston and Kingston Economic Development played a crucial role in our decision to go to Ontario, allowing us to accelerate our growth

and recognition as a global company.” Another local win is Feihe International, a Chinese manufacturer of infant formula, soybean, rice, cereal, and milk powder is one of the many International companies that followed an expansion plan that selected Kingston as a base for their operations in North America.

Kingston currently possesses four Business Parks: Cataraqui Estates Business Park, Clyde Industrial Park, Alcan Business Park, and St. Lawrence Business Park. These lands are one of the many crucial assets of Kingston. It offers space to manufacture and innovate according to companies own settings. Industrial land in Kingston can cost between $85,000 to $130,000 per acre with most of the lands located within 5 kilometres of Highway 401, which puts Kingston as a prime location for export based goods and services. Kingston has recently invested in infrastructure upgrades to the regional airport and is located 50

kilometres east of the Picton Terminals.

Kingston’s culture of innovation and entrepreneurship is growing and bringing with it new people, big ideas, diverse personalities, and a fresh outlook on how to drive economic development.

The City is bringing people together and supporting their drive to create, explore, and innovate the community by investing more than $2 billion dollars of planned, ongoing, and completed infrastructure over the past three years with and upcoming years.

From the City’s workforce expertise, growing population and its strategic location and business parks, there are numerous beneficial factors to provide businesses with the best opportunity possible to manufacture, innovate, and succeed.

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Advanced Manufacturing & Aerospace

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Brampton’s Strength in Advanced Manufacturing

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he City of Brampton is one of the youngest, fastest growing, most diverse cities in Canada.

Brampton’s is a connected city that is innovative, inclusive and bold. A hub of jobs and innovation.

With a population of over 600,000, Brampton is the ninth largest city in Canada and the third largest in the Greater Toronto Area (GTA). Brampton is the second fastest growing city in Canada, averaging 14,000 new residents per year. With a median age of 36.5 Brampton has, the lowest among Canada’s largest cities.

Brampton has transformed its economic development approach to take advantage of high growth business sectors like advanced manufacturing.

Brampton’s competitive advantages include its proximity to multi-modal transportation. It is conveniently located adjacent to Canada’s largest airport, Toronto Pearson International, as well as home to CN’s Intermodal Railway Terminal, the largest intermodal railway terminal in Canada. Brampton is also at the centre of Canada’s major transportation corridors and close to the U.S. border and as a result the city thrives on a fast and efficient movement of goods.

With a highly diversified economy, a steady flow of well-educated, skilled labour

and a strategic position in the middle of the Innovation Super Corridor, Brampton’s advanced manufacturing sector is a world class powerhouse of production. It is the largest sector in the city, accounting for more than twenty percent of its total workforce. From Fiat Chrysler Automobiles (FCA) to ABB Robotics, Brannon Steel, Maple Lodge Farms and Almag Aluminum Inc., Brampton’s advanced manufacturing sector is home to both multinational organizations and family owned businesses that have stood the test of time.

Brampton’s advanced manufacturing sector is also benefitting from the newly established Next Generation Manufacturing Canada (NGen Canada), which has been setup to deliver the federal government’s Advanced Manufacturing Supercluster.

The geographical focus of the Advanced Manufacturing

900

companies

35k

Supercluster is the southern Ontario, and as a result, Brampton has an opportunity to see new investments. With approximately 900 companies and engaged post-secondary partners like Sheridan College, the advanced manufacturing sector accounts for more than 35,000 jobs in Brampton.

The Brampton manufacturing ecosystem has significant strengths with Sheridan’s Centre for Advanced Manufacturing and Design Technologies and Sheridan’s Skilled Trades Centre that provide companies with the resources necessary to support development of new products/ process and people for the sector.

For more information please contact Daryl VanMoorsel, Advanced Manufacturing Sector Manager 905.874.2660 daryl.vanmoorsel@brampton.ca brampton.ca/business

employees working in advanced manufacturing in Brampton

The Labourers’ International Union of North America Ontario Provincial District Council Executive Board & Delegates would like to Congratulate Discover Magazine on their 10th Anniversary!

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Aerospace & Defense 4.0 Capturing the value of Industry 4.0 technologies With some aerospace and defense organizations lagging in the adoption of Industry 4.0, what can A&D companies do better to achieve digital transformation?

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ndustry 4.0 technologies could be the key to unlocking future competitiveness. There is a clear and compelling case for aerospace and defense (A&D) companies to leverage these technologies and incorporate digital transformation throughout their organizations.

In a global survey conducted

by Deloitte to assess the current state of Industry 4.0 adoption across manufacturing industries, 84 percent of A&D executives said they consider leveraging new digital technologies as key to market differentiation—yet only a quarter of the A&D companies are currently using these technologies and tools to access, manage, analyze, and leverage data from their digital assets to inform decision-making in real time.1 Industry 4.0-driven technologies can impact every company that operates within the A&D industry, from original equipment manufacturers (OEMs) to small suppliers.

However, not all companies

seem to be taking advantage of these technologies, whether for growing revenues or improving profitability. Designing new products and business models remains a significant challenge for most A&D companies, with 40 percent of the surveyed A&D executives identifying the establishment of new business or delivery models as the top challenge their organization faces as they pursue digital transformation initiatives.2 Furthermore, despite implementing Industry 4.0 technologies in areas such as factory manufacturing and supply chain, many A&D companies have been slow in adopting broader digital transformation initiatives that span the entire enterprise.3 This is because many surveyed companies in the industry note that they have not made Industry 4.0 a priority across the enterprise; rather, they have primarily invested in specific, focused technology implementations. Limiting the digital strategy to a few business functions may increase the risk of A&D companies being left behind in today’s digital era.

It is important, therefore, that companies across the industry understand and harness the power of new technologies to benefit from the opportunities of Industry 4.0 transformation.

A&D companies, especially mid- and small-sized, could start small but scale enterprisewide to maximize the benefits of these technologies. Instead of viewing new technologies as an add-on to existing processes and practices, A&D executives should rethink how they do business leveraging those technologies.

This report explores the lessons A&D companies appear to have learned in their journey in becoming digitally transformed enterprises and recommends how they could thrive in this age of Industry 4.0.

Key takeaways 1. A&D executives face many challenges while pursuing digital transformation initiatives.

2. Designing new products and business models remains the top challenge.

3. The pace of technological change and a lack of technology know-how are the key technological and strategic barriers.

4. Adoption of broad digital transformation initiatives that span the entire enterprise has been slow in many A&D organizations.

5. As a result, only a small section of A&D companies seems to be truly benefiting from the opportunities provided by Industry 4.0 technologies.

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What is Aerospace & Defense 4.0?

Aerospace & Defense 4.0 is the application of the Industry 4.0 technologies in the A&D industry for developing new cost-effective products and services, making existing products smarter using sensors and connectivity, and leveraging advanced manufacturing processes such as additive manufacturing, among other objectives.

Advanced Manufacturing & Aerospace

What is Industry 4.0?

Industry 4.0, or the Fourth Industrial Revolution, is the creation of a digital manufacturing enterprise that is not only interconnected but also communicates, analyzes, and uses information to drive further intelligent action back in the physical world. It drives the physical act of designing, manufacturing, distribution, and performance in an ongoing cycle known as the

Aerospace and Defense 4.0 has a multitude of current and emerging applications Technology Additive manufacturing Advanced analytics

Advanced robotics and cognitive automation

Current applications

Emerging applications

Prototyping, tooling, and functional enduse parts manufacturing Monitoring real-time aircraft health; identifying system/component failures in advance; making intelligent scheduling and forecasting models Using robotics in aircraft manufacturing for more efficient production, with fewer errors and quality issues

Combining new types of novel materials to improve aerospace parts and accessories Developing large-scale digitization of place maintenance data and schedules creating synergies across business and functional areas by enabling the “connected plane” Simplifying simulations of aircraft, weapons, and satellite performance, avoiding time-consuming analysis and tests of algorithms, software, and hardware Leveraging Al and computer vision technologies to augment advanced safety features in aircraft; incorporating advanced Al into drones and replacing human copilots in new, autonomous aircraft Improving tracking in supply chains and procurement using a shared database with suppliers and partners; improving validation of supplier performance and reputation; and time-stamping records to reduce fraud and improve supply chain security Using VR to optimize and design factories and simulate an entire factory or warehouse to train workers to use equipment more safely and efficiently Managing material costs and demand fluctuations by analyzing big data, enabling integrated smart connected assets and operations, and, eventual, an autonomous production environment

Artificial intelligence

Applying Al to robotics, automatic programming of tasks and processes in industrial settings, and enabling predictive maintenance

Blockchain

Enabling greater transparency of information between different parties; improving just-in-time logistics reducing erroneous orders; improving inventory turnover

Digital reality (AR/VR/mixed reality)

Replacing assembly manuals with smart glasses displays, which substantially reduces wiring production time

Internet of Things

Monitoring aircraft engine health and optimizing engine performance based on data collected from sensors

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physical-to-digital-to-physical (PDP) loop.

Throughout this cycle, real-time access to data and intelligence is driven by the continuous and cyclical flow of information and actions between the physical and digital worlds.

Many organizations already have some portions of the PDP loop in place, namely, the physicalto-digital and digital-to-digital processes. However, it is the leap from digital back to physical— from connected, digital technologies to action in the physical world—that constitutes the essence of Industry 4.0.

Some A&D companies are already beginning to realize the transformative effects of these technologies. They are exploring significant potential value across a variety of dimensions, from cutting costs and restructuring supply chains to expediting time to delivery and making devices and products connected across the board.

For instance, real-time flight data collected from sensors in aircraft is being used to reduce fuel consumption, improve scheduling, and minimize flight delays.4 Aerospace & Defense 4.0 technologies are also improving the aftermarket experience by using data to track asset condition and predicting parts and systems failures beforehand.

1. Deloitte analysis of data from Tim Hanley et al., The Industry 4.0 paradox, Deloitte Insights, October 10, 2018.

2. Ibid.

3. Deloitte analysis of data from Gerald C. Kane et al., Achieving digital maturity: Adapting your company to a changing world, Deloitte University Press, July 13, 2017.

4. Woodrow Bellamy III, “Data analytics driving efficiency in commercial aviation,” Avionics, December 21, 2017.

BRAMPTON’S

Advanced Manufacturing Sector

Brampton, Ontario, Canada Home of the Chrysler 300, Dodge Charger and Challenger, including the Hellcat models

Feel free to judge us by the companies we keep Join industry-leading businesses like FCA Canada Inc., Brannon Steel, BMP Metals, ABB Inc. and Almag Aluminum who call Brampton home. A young, educated, highly skilled and multicultural workforce. A strong economy. World-class transportation corridors to major markets. Room to grow. Need we say more?

Discover why we’re the best business decision you’ll ever make. INVESTBRAMPTON.CA

BRAMPTON

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