2011 PEI Aerospace Conference Aerospace & Defense in U.S. South Central Region

Ethan Benso Trade Commissioner Canadian Consulate General, Dallas, Texas

August 2011

Aerospace & Defense in U.S. South Central Region

Topics • • • • •

Region Snapshot New Developments Opportunities, Challenges & Strategies Upcoming Events Summary

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Canadian Consulate General U.S. South Central Region •

• • • • 37.3 Million People

5GSP > Canada GDP

Territory (5 states) • Arkansas • Kansas • Louisiana • Texas • Oklahoma Foster Canada-U.S. relations Promote trade, investment & S&T Monitor political & economic events Assist Canadians

65 Fortune 500, 51 in TX 3

Aerospace & Defense in U.S. South Central Region

Bombardier Learjet (Kansas)

MRO (Texas/Oklahoma/Louisiana)

Fast Response Cutter (Louisiana)

NASA (Texas & Louisiana)

Bell Helicopter 429 (Texas)

F-35 Joint Strike Fighter (Texas)

(Kansas)

(U.S./Mexico)

Aircraft Interiors Spirit AeroSystems 737 Production (Kansas)

Lockheed Martin MULE Cessna Citation

Border Security UAV

(Texas)

(Texas/Arkansas)

V-22 Osprey Tiltrotor (Texas)

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Aerospace & Defense in U.S. South Central Region General Sector Summary Military

Program Example F-35 Joint Strike Fighter (JSF)

Commercial

Future Major Platforms (Boeing 737, Airbus A320 replacements and Embraer Medium Jets) Cessna Citation Columbus (Suspended)

Business/General Aviation

Air

Land

Sea

X

Canadian Footprint Heroux-Devtek (Arlington, Texas)

X

Onex (Toronto) – Spirit AeroSystems original investing company

X

P&W Canada engines

Rotary

Bell Helicopter (429, V-22 Ospry)

X

Bell Helicopter Canada (Mirabel)

MRO

American Airlines (AMR), Tinker Air Force Base Program Example ISS (International Space Station)

X

Bombardier Service Center (Dallas Love Field) Canadian Footprint CSA, Canadarm (robotics), Neptec (imagery) CF/Tinker AFB (552 ACW)

Specific Sector Summary Space

Homeland Defense/ Disaster Response Sub-Sector Initiatives UVS (Unmanned Vehicle Systems)

Aircraft Interiors

Coast Guard Integrated Deep Water Program Program Example U.S. Border Patrol

Air

Land

Sea

X

X

X

X

Air

Land

Sea

X

X

X

X

Canadian Footprint MMIST (Ottawa)

Associated Air Center/Standard Aero

Organizations

Texas

Lockheed Martin (Aeronautics & Missiles/Fire Control) Spirit AeroSystems, Vought Aircraft (Triumph)

X

Cessna, Hawker Beechcraft, Bombardier Learjet, Dassault Bell Helicopter, American Eurocopter AMR, Standard Aero, Boeing, Tinker AFB

Louisiana

Arkansas

Oklahoma

Kansas

X

X

USAF refuelling tanker contract (Boeing)

X

Spirit AeroSystems and Vought Aircraft are Tier 1 suppliers to Boeing & Airbus. American Airlines aircraft order (largest in history). Wichita, Kansas is ‘Air Capital of the World’

X

X

X

X

X

Texas

Louisiana

NASA JSC & MAF

X

X

State National Guard Units

X

X

X

X

X

Organizations

Texas

Louisiana

Arkansas

Oklahoma

Kansas

Kansas UVS Consortium, L-3, Mission Technologies AAC, Gore Designs

X

X

X

X

X

Arkansas

Oklahoma

Current Trend

Bell 429 certification, V-22 success, offshore oil industry, USAF recapitalization Oklahoma aerospace industry is substantial, though overlooked

X

Organizations

Comment

Kansas

Comment

Current Trend

Space Shuttle retirement

X

Extremely complex – crosses multiple programs Comment

Current Trend

Need for regulatory bodies to define NAS safety requirements International customer base. Impact of GA downturn.

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Aerospace & Defense in U.S. South Central Region New Developments • Boeing awarded USAF contract for nextgeneration aerial refueling tanker • •

Over 800 suppliers Goodrich landing gear (Ontario)

• American Airlines places largest commercial aircraft order in history (Boeing & Airbus) •

Spirit AeroSystems (Wichita, Kansas), B737 & A320 Tier 1 Supplier 6

Aerospace & Defense in U.S. South Central Region Opportunities, Challenges, and Strategies Opportunities • MRO • Keeping ‘older’ aircraft flying longer while addressing the needs of ‘newer’ aircraft • Anything that can reduce fuel consumption • Composites to lighten the aircraft, alternative fuels, advanced aerodynamics, etc. • F-35 Joint Strike Fighter • Global Sustainment 7

Aerospace & Defense in U.S. South Central Region LEFAS – Machined Details Strite , Northstar CV Outboard Wing & Machining AVCORP

F-35 Lightning II Joint Strike Fighter

CTOL Horizontal Tail Magellan-Bristol

Machining Center Fuselage Heroux-Devtek, Aerostructures, Inc.

EPMS Power Panels DRS

Pylon AME Dishon Machining – Fwd Fuselage & Wing Magellan-Chicopee Heroux Devtek Inlet Lip Castings Howmet - Laval Division

PTMS Controller Pkg Honeywell Engine Systems & Services

GPS Chassis Machining Centra / Dishon

ELS Circuit Cards FTG, Samuel Specialty, CMR Radar Subsystems & Machining CMC Electronics

TNS Connectors & PWBs Mindready Composite Structures – Ctr Fuse Composites Atlantic

Courtesy of Lockheed Martin Aeronautics Company

Landing Gear M&O Goodrich Landing Gear Components Acroturn

Heat Exchangers – Machining, Castings, Tube Bending CPS Ind., Alpha Casting Handling System Tooling Handling Specialty

Fiber-Placed Nacelle Skins

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Aerospace & Defense in U.S. South Central Region Opportunities, Challenges, and Strategies • • • • •

Challenges U.S. and Global Economic Condition Strength of the Canadian Dollar Being able to deliver the ‘best’ products & ‘latest’ technology … at the ‘lowest’ price Rise of Mexico’s aerospace industry ITAR/Export Control and next generation workforce 9

Aerospace & Defense in U.S. South Central Region Opportunities, Challenges, and Strategies Strategies •

‘Identify’ your targets •

•

‘Sell’ how your product/technology will deliver bottom-line benefit in a timely manner and better than your competition •

•

Cost and delivery pressures are enormous

‘Leverage’ resources •

•

Want on a Boeing aircraft? Don’t necessarily knock on Boeing’s door!

DFAIT’s TCS, Industry Canada’s IRB’s, etc.

‘Face time’ with the client •

Remember - their waiting room is full of people wanting face time, too 10

Aerospace & Defense in U.S. South Central Region Upcoming Events (Top Tier) • F-35/JSF Global Sustainment Conference, Ft. Worth, Texas (December 2011 Tentative) • Heli-Expo Conference, Dallas, Texas, February 2012 (http://www.rotor.com/Events/HELIEXPO20 12.aspx) • MRO Americas Conference, Dallas, Texas, April 2012 (http://www.aviationweek.com/events/current /mro/index.htm) 11

Aerospace & Defense in U.S. South Central Region Upcoming Events (Second Tier) • Tinker and the Primes, August 2012, Oklahoma City (http://tinkerandtheprimes.com/) • 2012 Arkansas Aerospace Summit, Date/Location TBD (http://www.arkansasaerospace.com/) • 2012 Oklahoma Aerospace Summit, Date/Location TBD (http://www.okaero.com/) 12

Aerospace & Defense in U.S. South Central Region Summary •

Aerospace & Defense is alive and well in the U.S. South Central Region •

• •

OEM’s and their suppliers need good partners Canada’s aerospace & defense industry has a strong reputation in the region •

•

F-35/JSF, Bell Helicopter, Cessna, NASA, American Eurocopter, etc.

Bombardier, Heroux-Devtek, and CAE all have local operations

Take advantage of ‘Team Canada’ programs and the TCS network • •

Farnborough/Paris Air Show, Trade Missions, Workshops, etc. TCS website: http://www.tradecommissioner.gc.ca/ 13

And finally, on the 10 year anniversary of 9-11 … … a solemn thank you from a grateful nation

Ethan Benso Trade Commissioner Canadian Consulate General 500 North Akard Street, Suite 2900 Dallas, Texas 75201 Phone: 214.721.1855 Fax: 214.922.9815 [email protected] www.dallas.gc.ca 15