Bombardier Canadian economic growth in 2021 was estimated at $5.7B in GDP

posted on 23rd March 2022 by Eddie Saunders
Bombardier Canadian economic growth in 2021 was estimated at $5.7B in GDP

A newly released independent assessment by PwC Canada highlights the significant economic and social impact of Bombardier’s manufacturing activities in Canada, Québec and Ontario.

The report analyzes the company’s contribution to Canada in terms of wealth, GDP and job creation, as well as Bombardier’s international competitiveness and ESG milestones.

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.

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.

“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,” said Éric Martel, President and CEO, Bombardier.

“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 Québec.

Bombardier’s extensive 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 $1.9B 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 $7.2B or 7.6% of the province’s total export value in 2021. Bombardier was responsible for 70.5% of the value of exported aircraft 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 contribution from manufacturing activities in Canada is estimated at $25.2B in GDP (or an annual average of $6.3B), and 150,485 job-years (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.