Evolution of Aerospace in Manitoba Presented to: 2014 Winnipeg Real - PowerPoint PPT Presentation

Evolution of Aerospace in Manitoba Presented to: 2014 Winnipeg Real Estate Forum April 29, 2014 1

Characteristics of Aerospace Industry • Safety consideration and regulations • Long technology and product development cycles • Product lifetime • Intensive capital needs • Globalization and Increased competition • Environmental Impact

Aerospace in Canada

Air Travel Driving Growth Air travel remains a robust growth market Page 5

Aerospace in Manitoba Background • From modest beginnings to world class global suppliers • Standard Machine Works (MRO-1911) • MacDonald Brothers Sheet Metal (Mfg. 1914) • Trans Canada Airlines (1936 - Aviation, MRO) • British Commonwealth Air Training Plan ( Training 1939) • Black Brant (Space -1962) • Boeing (Composites – 1971) • Composites Innovation Centre (2003) • GLACIER (2010) an GE TRDC (2011) – Engine testing and certification

Sector Profile • Annual revenues of more than $1.6 billion • Over 80% exported • More than 40 businesses make up a diverse supply chain • Highly skilled workforce of 5,500+ • Strong network and collaboration- ind/govt/academia/research • Workforce development, training and career awareness 6

Key Capabilities • Design, Development, Manufacture • Repair and Overhaul • Spacecraft and payload design and integration • UAV guidance systems • Aircraft modification and certification • Cold Weather and Environmental Testing • Military and civilian pilot training 7

Aerospace in Winnipeg Figure 5: KPMG Competitive Alternatives 2010 Top Cities for Aerospace Manufacturing - Total Cost Index Winnipeg 95.5 Halifax 96 Montreal 96.8 Vancouver 97.1 Toronto 97.1 Charleston 97.2 Dallas-Ft. Worth 98.2 Wichita 98.2 Phoenix 99.5 Seattle 100 Los Angeles 100.6 San Diego 100.8 92 93 94 95 96 97 98 99 100 101 102 Operating Cost Index Source: KPMG Competitive Alternatives, 2010

Strengths • Workforce Development • Education and training • Industry/Academia Collaboration and Innovation • University of Manitoba, Red River Community College, Composites Innovation Centre • Business Environment • Federal and Provincial Program Support • Technology Roadmap

Recent Highlights/Investments GE Aviation Engine Testing, Research & Development Centre (TRDC) • $50 million facility located at WAA and operated by Standard Aero GLACIER - Global Aerospace Centre for Icing and Environmental Research • $40M engine test facility located in Thompson with Rolls Royce and Pratt & Whitney Both facilities undergoing expansion to accommodate year-round operations 10

Recent Highlights/Investments Boeing Winnipeg expands for 737 MAX • Approx. 1,600 employees in Winnipeg – Opened with 57 employees in 1971 • Main plant in Murray Industrial Park > 500,000 sq. ft. • Winnipeg chosen for 150,000 sq. ft. expansion (+22%) • Expansion mainly for production of the 737 MAX composite acoustic engine inlet barrel – 737 world’s best selling jet airliner

Recent Highlights/Investments StandardAero Partners with GE • One of world’s largest independent engine MRO companies • Over 100 years of industry leadership • Winnipeg facilities – approx. 1,300 employees, 650,000 sq. ft. and two expansions to service CF34/CFM56 engines (80,000 sq. ft. and 27,000 sq. ft.) • 2011 - $50M GE Test, Research and Development Centre (TRDC)

Recent Highlights/Investments Magellan Aerospace, Winnipeg • 700 Employees • 800,000 sq. ft. facility • 140,000 sq. ft. expansion in 2010 to accommodate new technology for F35 HTAIL Manufacture

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