Suzanne Benoît is President of Aéro Montréal.
"More than 80 % of aerospace executives expect their employees to be working with artificial intelligence (AI) systems in the next few years.
Aéro Montréal has been working for companies and institutions in the Quebec aerospace sector since 2006. What are the main challenges that have been overcome during these years, and which ones are still to come?
The aerospace sector is facing increasingly globalised competition; this drives us to establish several strategies to ensure the competitiveness of our SMEs.
One of the biggest challenges we have faced is the transformation of the supply chain:
- Supply chain transformation. Our companies work less and less directly with an original equipment manufacturer (OEM). They need to do business with Tier 1 and Tier 2 companies that sell more complete subcategories to OEMs. This has led our SMEs to review their business development strategies and to work with new customers, using novel methods.
In a context of fierce competition, innovation has always been the main challenge. I would like to answer your third question about the challenges ahead. Small and medium-sized enterprises play an important role in the aerospace sector. What are the main challenges they will face in the sector in the near future?
- Internationalisation/mergers/collaborations. Our SMEs need to achieve greater critical mass to work with Tier 1 and Tier 2 companies. To do this, they need to work more closely with other companies, often based abroad, to offer more complete subcategories to integrators. Increasing a company's critical mass involves company mergers and acquisitions.
- Embracing the shift to Industry 4.0 and the transition to the digital environment. This step is mandatory for any SME wishing to innovate and grow.
- Diversification of customer base and markets. Our SMEs can no longer depend on a single customer. To continue to exist when one aeronautics programme ends, they must be present in other growing markets, including drones, MRO and defence.
- Recovery in the face of labour shortages. This is currently the biggest challenge for any company. With 37,000 jobs to fill in 10 years, Quebec's aerospace sector needs to implement campaigns to attract foreign labour and young Quebeckers interested in pursuing a career in aerospace.
To answer the second part of your question, it is essential that the cluster remains very effective, as our role is to help our SMEs by implementing programmes and initiatives useful for their growth strategy.
Created in 2006, Aéro Montréal is a strategic think tank that brings together key decision-makers in Quebec's aerospace sector, including companies and educational and research institutions, as well as associations and trade unions. The grouping has set up working groups aligned with the challenges facing the sector and ensures that concrete solutions are offered to the problems facing the sector.
It is also important to maintain a strong cluster, as we are developing many international agreements with foreign-based clusters. These agreements allow us to facilitate interactions between our companies and those based abroad, which may have complementary needs.
Innovation. Our vision is to become the most innovative cluster in the world by 2022. This culture of innovation is deeply rooted in our businesses and is imperative to our success.
Aéro Montréal recently launched a major study on the potential synergies between AI and aerospace in Montréal. What were the main findings of this study?
The shift to artificial intelligence (AI) in the aerospace sector is relatively recent. Companies in our sector are starting to implement various AI solutions.
Artificial intelligence will emerge in aerospace companies, especially through augmented reality, connected tools and robotics. More than 80 % of aerospace executives expect their employees to work with artificial intelligence (AI) systems in the coming years.
However, to adopt these new technologies, our companies need to join forces and work together. This is why we encourage our SMEs to develop partnerships, especially with companies in other industrial sectors related to artificial intelligence.
The advent of AI will also have a significant impact on the workforce. It is estimated that, over the next 10 years, the advent of AI will transform 50 % of jobs. Training institutions will have to adapt their teaching programmes.
Montreal has also had a clear competitive advantage in AI since the implementation in its region of the SCALE AI group. Its goal is to increase economic development through the rapid adoption and integration of artificial intelligence in supply chains.
The aerospace sector is one of the main export drivers in Quebec. What are the advantages of the aerospace sector in Quebec and what are the objectives to be achieved in the coming years?
More than 80 % of Québec aerospace production is exported outside Canada. Our ecosystem offers a variety of advantages. These are the main ones:
- A diversity We have companies that manufacture virtually every component of an aircraft. We are also home to 6 OEMs (Airbus, Bombardier, Mitsubishi, CAE, Pratt & Whitney Canada and Bell) in our region and almost 200 SMEs.
- The concentration. 98 % of our cluster companies are located within a 30 km radius of Montreal, which facilitates collaboration between our SMEs.
- The government aid. Our two levels of government are very attentive to our needs and offer assistance to our companies. They do this by providing financial support for cluster-designed initiatives and programmes that meet the specific needs of our sector.
- A specialised staff and a network of six universities offering a concentration of joint master's programmes specialising in aerospace, as well as two vocational schools specialising in aeronautics.
- A innovation culture. More than 70 % of Canadian aerospace R&D is produced in Québec. Our companies are investing heavily in innovation to remain among the most successful in the world.
At Aéro Montréal, there are currently different working groups. What are the main projects you are involved in with some of the groups?
Aéro Montréal currently has about 8 working groups:
- Growth
- Cutting-edge staff
- MRO
- Unmanned aerial vehicles
- Defence and security
- Innovation intelligence and strategies
- Smart green supply chain
- Brand personalisation and promotion
These working groups are made up of professionals from the sector and carry out many initiatives, including the following:
MACH: It promotes collaboration and innovation in the supply chain and improves supplier performance and competitiveness.
- 5 active cohorts and nearly 60 trusted suppliers
- More than 600 projects completed
- More than USD 6.6 million invested in projects
MACH FAB 4.0: It promotes the implementation of digital technologies and advanced manufacturing in participating SMEs.
- A USD 19 million project, including USD 9.5 million in public funds.
- 21 ongoing projects and 6 completed projects
StartAéro 360°: It promotes the integration and commercialisation of radically innovative technologies in the aerospace supply chain.
- A USD 4.3 million project, including USD 3 million of public funds
- Assistance to 30 SMEs for more than 3 years
Accelerator 360°: It assists growth and promotes collaboration between SMEs in international markets by helping with commercialisation in global supply chains.
- A USD 7.2 million project, including USD 5 million of public funds
- Assistance to 35 SMEs
AeroPortal: It presents career paths and trades in the aerospace sector and centralises information and vacancies in the sector so that they are available to the general public and job seekers.
- Nearly 20,000 Facebook subscribers and more than 1,000 candidates in the Employment Fund
- Nearly 900 vacancies published since the launch of the portal in 2016
