With Bombardier on track to deliver its new CSeries aircraft in the second quarter of this year, growth in Quebec’s aerospace sector is forecast to increase by 14 per cent in 2016. EDC’s Global Export Forecast 2016 has Quebec’s overall exports increasing by five per cent both this year and next.
Quebec’s aerospace industry set to take off this year
For Bombardier, 2016 marks an important milestone for the flagship airplane manufacturer, whose success will provide a significant boost to Quebec’s economy. Other exporters in this sector are also contributing to the province’s export success.
“Bombardier isn’t alone in fueling the growth in the aerospace sector,” said Peter Hall, EDC’s Chief Economist. “Equipment and services will also support Quebec’s upswing in exports. Montreal-based CAE, for example, has lined up large simulator contracts with the German Navy and US Air Force this year.” EDC also forecasts more demand for aircraft parts, equipment, and services in emerging markets.
Strong US demand means more opportunities for Quebec businesses
Quebec’s export story is very much tied to the United States, which is the destination for almost three-quarters of the province’s exports. The surging US economy, and the increasing demand that comes with it, will continue to be a key growth driver for Quebec businesses this year and next.
“The vast majority of Quebec’s exports go to the US, so growth south of the border is clearly a good news story for the province,” says Hall. “The price advantage from a lower Canadian dollar will continue to provide export-minded companies with competitive opportunities.” These conditions mean more opportunities on the horizon for Quebec companies that export, as well as those willing to consider the possibilities of growing their business abroad.
Diversification as a key to Quebec’s export success
Quebec’s positive forecast also stems from the diversification of its export sectors. For resource sectors, the outlook is relatively positive. Quebec’s largest export sector – metals, ores, and other industrial products – accounts for roughly one-quarter of all its exports and is forecast to grow four per cent both this year and next. The province’s forestry sector is also doing well, largely as a result of continuing growth in US housing starts which is driving the demand for lumber. This sector is expected to see growth of four per cent this year and five per cent in 2017.
For more information on export prospects in Quebec, please read EDC’s Global Export Forecast: Spring 2016. This resource offers information and insights on the impact of the global economy on all provinces, as well as on a variety of sectors.