(Originally published in the January 2012 issue of the Nova Scotia Business Journal - Outlook 2012 Special Edition)
The future of the aerospace and defence sector in Nova Scotia for 2012 and beyond is promising and holds many opportunities for local companies, mainly due to the large and varied capital procurements planned for the Canadian Forces under the Canada First Defence Strategy.
Employment opportunities should increase steadily over the next few years due, in part, to the federal government announcement that Irving Shipbuilding was chosen to build the combat ships. The Conference Board of Canada’s report, commissioned by the Greater Halifax Partnership determined that the GDP in Nova Scotia will increase by $661 million, generating 8,500 new jobs. Economic activity, driven by the shipbuilding contract, will also increase demand for retail supplies and services, substantially improving the provincial tax base.
Cutting steel for the first ship, the Arctic Offshore Patrol Ship, is not expected until 2013; however, in 2012 we should start seeing increased activity as Irving Shipbuilding establishes the partners and supply chain to commence ship construction.
Next spring, the government plans to award the contract to build new combat vehicles for the Canadian Army under the Tactical Armoured Patrol Vehicle (TAPV) and Close Combat Vehicle (CCV) programs. Around the same time, the request for proposals should be issued for the Medium Support Vehicle System, replacing the army’s two-and-a-half-tonne trucks. Also on the horizon, by the end of 2012 we should see the next procurement phase for the desktop training system for light armoured vehicles, TAPVs, and CCVs.
On the air side, work continues on Industry Canada’s Industrial and Regional Benefits (IRB) requirements for the Joint Strike Fighter program. The Fixed Wing Search and Rescue project has gone back to Cabinet and should be tabled sometime next year.
The possibilities are limitless for Nova Scotian companies who want to be part of the aerospace and defence supply chain through direct or indirect participation driven largely by the IRB program. The Aerospace and Defence Industries Association of Nova Scotia continues to work closely with the federal government partners and industry to promote its membership and seek avenues for them to showcase their goods and services.
*Outlook 2012 Special Edition: Read more about what 2012 holds for Nova Scotia's top industries at: http://www.ns.dailybusinessbuzz.ca/Industry-Spotlight-17342
The answer is that IRB are not being applied to the manufacturing of the platform since there is a multinational MOU in place. However Canada is expected to insist that some of its sustainment activity can and must be carried out in Canada. This was a subject of discussion at the recent JSF update meeting at the Halifax Club. The issue is a practical one – Canada could do some but not all of the work for all of the F-35’s in the world, but could do plenty of maintenance on the ones we will own. I admit it is badly worded. Thanks for asking the question!