AEROSPACE AND DEFENCE

• The largest concentration of DND assets in Canada

• Leader in marine technology R&D

• Private sector collaboration at Lockheed Martin’s Technology Collaboration Centre

• Growing visualization cluster

• Competitive business costs

• Producing the talent you need

• Pool of former CF personnel

• Immigration friendly policies to attract foreign workers

• Strategic location

COMPETITIVE ADVANTAGES

Given our strategic location as a gateway to other parts of the world, Halifax has a strong history in the aerospace and defence industry. In the 18th Century, the city of Halifax served as a principal naval station in the British Empire, and was of great importance to Canada’s development and evolution from colony to nation.

Today, aerospace and defence in our region is as strong as ever. As a $1.6 billion industry, a number of world-class defence, security and aerospace companies are located in our region. These companies are backed by a highly skilled workforce and excellent support services, which allows them to compete nationally and internationally.

AEROSPACE AND DEFENCE

INDUSTRY HIGHLIGHTS

• Nova Scotia’s commercial aerospace and defence sector – primarily located in Halifax - employs 6,000 people and generates more than $600 million in revenues each year.

• Canadian Forces Base (CFB) Halifax is home to the East Coast Navy. More than 10,000 DND and Canadian Forces personnel work in Halifax.

• Software-based products and services account for 40% of the industry’s work, followed by systems integration & supporting services (27%), engineered products (22%) and aerostructures (11%).

• The local industry is intimately tied to Canadian military procurement, and is undertaking large-scale Department of National Defence projects, including the National Shipbuilding Procurement Strategy, Maritime Helicopter Program, the Halifax Class Modernization/Frigate Life Extension Project, and the Aurora Structural Life Extension Program.

• A shipbuilder since 1889, the Halifax Shipyard was awarded the $25 billion combat vessel contract under the National Shipbuilding Procurement Strategy - 30 years of business. The yard currently has 1,300 employees - 77 advanced degrees and professional designations and more than 400 employees experienced in naval ship construction.

• The cluster is represented by the Aerospace and Defence Industries Association of Nova Scotia (ADIANS) and the Atlantic Alliance of Aerospace & Defence Associations.

NOTABLE AEROSPACE & DEFENCE COMPANIES IN HALIFAX

Halifax is home to a number of world-renowned aerospace and defence firms specializing in composite fabrication, electronic assemblies, simulation and modeling technologies, shipbuilding, and engine manufacturing. These companies include:

• Irving Shipbuilding Ltd.• Atlantis Systems Corp• Lockheed Martin • L-3 Electronic Systems • Pratt & Whitney Canada Inc. • General Dynamics • IMP Group International Inc. • CAE Professional Services • Raytheon • Ultra Electronics Maritime Systems • EADS Composites Atlantic • MacDonald Dettwiler & Associates

THE LARGEST CONCENTRATION OF DEPARTMENT OF NATIONAL DEFENCE ASSETS IN CANADA

Nova Scotia is home to 40% of Department of National Defence’s (DND) assets, and Halifax alone employs more than 10,000 DND and Canadian Forces personnel. The city is the base for the East Coast Navy. Nearby Canadian Forces Base Greenwood is the largest air force base east of Trenton, Ontario. Some of the city’s key DND assets include:

• Canadian Fleet Atlantic, which comprises of 7 Halifax-class frigates, 2 Iroquois-class destroyers (area air defence destroyers and fleet flag ships), 1 Operational support ship, 5 Kingston-class vessels (coastal defence and training vessels) and 3 Victoria-class submarines;

• Maritime Forces Atlantic Headquarters, one of three primary formations of the Canadian Navy and the largest naval presence in Canada.

• 12 Wing Shearwater, which supports and operates ship-borne helicopters for the Canadian Forces Maritime Command;

• Land Force Atlantic Area Headquarters, which is responsible for most Army Regular and Reserve Force elements in the four Atlantic Provinces;

• Canadian Forces Ammunition Depot Bedford (CFAD Bedford), which houses all of the weaponry for East Coast navy vessels and has a loading jetty and several nearby anchorages;

• Joint Ocean Surveillance Information Centre (JOSIC), which maintains Maritime Forces Atlantic communications with vessels and other Canadian Forces and allied units;

• CF Naval Engineering School (CFNES) and CF Naval Operations School (CFNOS);

• Acoustic Data Analysis Centre Atlantic (ADAC Atlantic), the recognized expert in acoustic analysis and training in Canada;

• Her Majesty’s Canadian Dockyard, which contains berths for Canadian and foreign warships, Fleet Maintenance Facility Cape Scott, and shore-based training facilities, as well as operations buildings for Maritime Forces Atlantic; and,

• Cape Scott Fleet Maintenance Facility (FMFCS), the East Coast Canadian Naval Repair facility.

LEADER IN MARINE TECHNOLOGY R&D

Halifax is home to a world-class marine research cluster that includes Defence Research & Development Canada Atlantic (DRD Atlantic), the Bedford Institute of Oceanography (BIO) and Dalhousie University.

• DRDC Atlantic employs 240 staff and is Canada’s leading centre in sonar technology, torpedo defence, mine hunting, ship hydrodynamics and naval materials research.

• BIO, home to 600 scientists, engineers and others, conducts world-class ocean research related to federal government marine priorities, including sovereignty and defence, environmental management, and health and safety.

• Dalhousie University’s professors and associates in Marine Affairs and associated programs are engaged in oceanography, marine and environmental law and policy, and resource and environmental studies; and, as mentioned,

• Acoustic Data Analysis Centre Atlantic (ADAC Atlantic), operated by DND and recognized as an expert in acoustic analysis and training in Canada.

• Shipbuilding Centre of Excellence, being created at the Nova Scotia Community College to help meet the work requirements of the $25 billion shipbuilding contract.

COLLABORATION AT LOCKHEED MARTIN’S TECHNOLOGY COLLABORATION CENTRE

In 2009, Lockheed Martin Canada opened a 100,000 square-foot Maritime Advanced Training and Test Site (MATTS) facility in Halifax. Its Technology Collaboration Centre in the MATTS facility will provide a near-at-sea environment for Canadian businesses to test and develop solutions for the Canadian Navy.

GROWING VISUALIZATION CLUSTER

Halifax is home to a thriving visualization and simulation sector that includes:

• CAE, a global leader in flight simulation

• Altantis Systems Corp., providers of comprehensive simulation-based training systems for commercial and military aircraft

• Longtail Studios, a developer of character-driven games for Ubisoft

• Silverback Productions, a flash and 3-D games developer whose clients include Nickelodeon, Hasboro and MTV

• The Brain Repair Centre and the National Research Council’s Institute of Biodiagnostics – key innovators in health-related visualization and simulation

These local assets can be leveraged to develop military-specific visualization solutions.

WELCOMING DEFENCE COMMUNITY

Halifax has been a military base for more than 250 years. CFB Halifax has a strong and visible presence in the heart of the city. The province’s long and proud military history, its significant DND assets and its high Canadian Forces enrolment rate represent a huge advantage to aerospace and defence recruiters. There continues to be strong civic support for the military, as evidenced by the popularity of Reserves and Cadet Programs, the International Tattoo, and international air shows.

INDUSTRY ASSOCIATIONS & ORGANIZATIONS

• Aerospace and Defence Industries Association of Nova Scotia

• Aerospace Industries Association of Canada

• Aerotech Business Park

• Atlantic Canada International Air Show

• Atlantic Alliance of Aerospace & Defence Associations

• Canadian Association of Defence and Security Industries

• Canadian Space Agency

• International Coordinating Council of Aerospace Industries Association

• Nova Scotia Boatbuilders Association

Credit: David Tross

Credit:

CAE

With its skilled workforce, business friendly environment, competitive costs, and advantageous geographical location, Nova Scotia has been a corner-stone of our Canadian operations for many years and will continue to be an important part of our growth strategy.

Richard D. AckermanVP – Business Development

L-3 Electronic Systems

INDUSTRY VOICES

Nova Scotia is a tremendous place to do business. First and foremost, it has a workforce that is not only highly skilled, but also highly motivated to support the men and women of the Navy and the work they do on behalf of Canadians. For Lockheed Martin Canada, an expansion in Halifax simply makes sense.

Tom DiganPresident

Lockheed Martin Canada

BUSINESS COSTS & INCENTIVES

Halifax offers more competitive business costs compared to other cities across North America. In its 2012 Competitive Alternatives survey of 113 jurisdictions in fourteen countries, KPMG found that Halifax had significantly lower aerospace and defence business costs compared to most other jurisdictions. Aircraft parts manufacturing was used as the representative industry for the entire sector.

Halifax (CAN)

Marseille (FRA)

Montreal (CAN)

Amsterdam (NET)

Toronto (CAN)

Vancouver (CAN)

Berlin (GER)

London (GBR)

Boston (USA)

Seattle (USA)

Sydney (AUS)

Tokyo (JAP)

80 90 100 110 120 Source: KPMG Competitive Alternatives 2012

COMPARATIVE COST OF DOING BUSINESS (ACROSS NINETEEN MANUFACTURING, CORPORATE, IT, AND R&D INDUSTRIES)

TAXATION

CORPORATE INCOME TAX

General Rate 16.00%

Manufacturing & Processing 16.00%

Small Business Rate 3.50%

CORPORATE CAPITAL TAX

General Rate Eliminated

Financial Services 4.00%

Payroll Tax Nil

Source: Nova Scotia Department of Finance

92.7

94.1

94.3

94.7

95.7

96.5

98.0

98.1

101.2

101.5

105.0

112.3

COMPARATIVE COST OF DOING BUSINESS IN AEROSPACE & DEFENCE (AIRCRAFT PARTS MANUFACTURING)

Source: KPMG Competitive Alternatives 2012

Competitive salaries. Aerospace and defence salaries in Halifax tend to be lower than in other Canadian and American cities – a real competitive advantage for companies located here.

AVERAGE BASE SALARY FOR AEROSPACE ENGINEER WITH 8 YEARS EXPERIENCE

City Average Base Salary

Halifax $ 66,718

Montreal $ 70,392

Vancouver $ 73,340

Toronto $ 76,453

Atlanta $ 83,785

Seattle $ 93,909

Source: Payscale, August 2013. Salaries represented in their respective currencies.

A PLACE TO OFFSET YOUR IRB REQUIREMENTS

Halifax is the ideal place to offset your Industrial Regional Benefit Policy (IRB) commitments, given its concentration of publicly-funded research. For every dollar you allocate to a university or research institute, you can offset up to five dollars in IRB obligations.

0 20 40 60 80 100 120

Mexico City(MEX)

Halifax (CAN)

Montreal (CAN)

Toronto (CAN)

Atlanta (USA)

Phoenix (USA)

Vancouver (CAN)

Hartford (USA)

Seattle (USA)

London (GBR)

Tokyo (JAP)

84.5

96.2

96.9

97.1

97.5

98.6

98.7

100.1

101.6

101.6

112.6

OTHER INCENTIVES TO MEET YOUR PARTICULAR NEEDS

Whether starting, relocating or expanding a business, you can benefit from have a number of incentives at both the federal and provincial level to help you invest in Greater Halifax. We’ll be glad to assist you in identifying the ones that best suit your needs.

Atlantic Innovation FundA $300 million pool of research funding available to eligible Atlantic Canadian companies undertaking research and development projects explicitly linked to the commercialization of technology-based products, processes or services.

Business Development Program (BDP)Small and medium-sized enterprises can access capital in the form of interest-free, unsecured, repayable contributions for business studies, capital investment, training, marketing, and quality assurance activities that support business in the region. Assistance is also available to help companies acquire public and private procurement contracts or to develop an innovative product or service.

Canada Small Business Financing ProgramAccess funds for your small business with the help of this loan guarantee program.

Canadian Innovation Commercialization ProgramShowcase your innovative product or service to potential federal government clients.

Capital Investment IncentiveReceive funding to help offset the cost of buying technologically-advanced machinery, clean technology, equipment, software and hardware.

Defence R&D Canada – AtlanticDRDC Atlantic collaborates with other government departments, Canadian industry, universities and international partners to leverage knowledge, facilities and costs.

Industrial Research Assistance Program (NRC-IRAP)NRC-IRAP offers direct technical assistance, access to the latest technological advances, expertise, facilities and resources to eligible small and medium size enterprises. It may also provide cost-shared financing of innovative technical projects to qualified firms.

Nova Scotia Payroll RebateBusinesses can receive a return on gross payroll taxes depending on the economic benefit generated to the Province.

Nova Scotia Small Business Financing/Loan Guarantee ProgramAccess some working capital to help establish or grow your business.

Scientific Research & Experimental Development (SR&ED) ProgramCanadian controlled private corporations may be eligible to have a portion (or all) of the 35% federal tax credits paid out in cash. If you qualify for the 15% Nova Scotia R&D tax credits, you may be eligible to have a portion (or all) of the credits paid out in cash, if there are no other taxes owing.

Workplace Innovation and Productivity Skills Incentive Receive funding to invest in employee and management skills development, and improve productivity. It also helps companies adapt to the introduction of new technology and innovative processes, and enhance international competitiveness.

One of the largest concentrations of universities in North America, producing the talent you need.

Halifax has among the highest ratios of educational facilities to population in North America, with six universities offering a multitude of undergraduate and graduate programs. More than 30,000 students are enrolled at these universities every year, while some 6,805 earn degrees and certificates. This is in addition to the 10,676 students across Nova Scotia who attend the Nova Scotia Community College, as well as students graduating from universities in nearby towns and provinces.

ACCESS TO GRADUATES

Below are recent enrolment and graduate numbers in the Maritime Provinces. They do not include a number of other programs that may be of interest to the sector, including business administration.

TOTAL UNIVERSITY ENROLMENT AND GRADUATES IN THE MARITIME PROVINCES, 2010-2011

Province Enrolment Graduates

Nova Scotia 42,878 9,628

New Brunswick 23,461 4,981

Prince Edward Island 4,415 696

Total 70,754 15,305

ENGINEERING & APPLIED SCIENCES ENROLMENT BY PROVINCE, 2010-2011

Province Enrolment Graduates

Nova Scotia 2,511 798

New Brunswick 2,087 421

PEI 94 19

Total 4,692 1,238

MATHEMATICS & PHYSICAL SCIENCES (INCLUDING COMPUTER SCIENCE) ENROLMENT, 2010-2011

Province Enrolment Graduates

Nova Scotia 1,716 447

New Brunswick 804 172

PEI 211 50

Total 2,731 669

WORKFORCE

Source: Maritime Provinces Higher Education Commission

Dalhousie University

Program Areas of Focus Related to Aerospace & Defence

Diploma Engineering, Information Technology

Bachelor of Computer Science

Computer Science

Bachelor of Engineering Chemical, Computer, Civil, Electrical, Environmental, Industrial, Materials, Mechanical

Bachelor of Science Chemistry, Mathematics

Bachelor of Informatics Software Systems

Bachelor of Science Chemistry, Mathematics, Physics & Atmospheric Science

Masters of Science Chemistry, Physics & Atmospheric Science, Process Engineering & Applied Science

Masters of Engineering Mathematics, Environmental, Biological, Chemical, Civil, Electrical & Computer, Industrial; Internetworking, Materials, Mechanical

Master of Computer Science

Computer Science, Applied computer Science

PhD Chemistry, Computer Science, Engineering (process engineering & applied science, biological, chemical, civil, electrical & computer, engineering mathematics, industrial, materials, and mechanical); Physics & Atmospheric Science

Mount Saint Vincent University

Program Areas of Focus Related to Aerospace & Defence

Bachelor of Science Physics, Mathematics

Bachelor of Arts Mathematics

Nova Scotia Community College

Program Areas of Focus Related to Aerospace & Defence

Diploma Aircraft Maintenance Engineer; Information Technology; Engineering & Applied Science Technology.

Saint Mary’s University

Program Areas of Focus Related to Aerospace & Defence

Bachelor of Science Chemistry, Computing Science, Mathematics, Physics

Masters of Science Applied Science

Diploma Engineering

RELATED EDUCATION PROGRAMS AT HALIFAX’S POST-SECONDARY INSTITUTIONS

Private military training is also conducted by:

• L3 Communications MAS Canada (aircrew and maintenance personnel training)• Lockheed Martin Canada (computer-based synthetic maintenance training and simulation);

and, • Kongsberg Maritime (naval acoustics, ship and fleet management, marine simulation,

navigational training)

Furthermore, the Canadian Coast Guard College in nearby Sydney, NS, provides marine-related training courses in environmental response, engineering and search and rescue.

POOL OF FORMER CF PERSONNEL

Nova Scotia is home to roughly 37,000 Canadian Forces (CF) retirees. Given that the current average age of release from the CF is well before retirement age, many former military personnel have started another career. They represent a valuable labour pool for aerospace and defence companies.

IMMIGRATION-FRIENDLY POLICIES TO ATTRACT FOREIGN WORKERS

Bringing temporary foreign workers into the province is straightforward and fast. The Nova Scotia Nominee Program (NSNP) Skilled Worker stream helps employers hire workers whose skills may be in limited supply in the province. The stream helps employers recruit and retain immigrant workers with the required skills for these positions. Work permits issued from the Nova Scotia Office of Immigration are processed more quickly, on average, than most other provinces.

SOURCES

• Canada Business – Nova Scotia’s monthly business information bulletin, Aerospace and Defence , November 2011• KPMP Competitive Alternatives 2012 • Maritime Provinces Higher Education Commission

• Nova Scotia Department of Finance

A COMMITMENT TO HELPING YOU GROW HERE

The Greater Halifax Partnership is the lead economic development organization for Halifax, NS, the economic hub of Atlantic Canada. As a public-private partnership, we bring together all three levels of government, industry, post-secondary and community partners to create and nurture the necessary relationships for business development across a broad range of industry sectors.

We can assist you during your site selection process and relocation to Halifax by providing you with:

• strategic support

• in-depth research and economic data

• connection to business resources, incentives and financing

• the customized business case and unique value proposition relevant to your business needs

• marketing materials

• focused after-care program

• SmartBusiness, business retention and expansion program

For more information contact:

Nancy Phillips Director, Investment and Trade Partnership Tel: 902.490.6003 Toll-free: 1.800.565.1191 nphillips@greaterhalifax.com www.whyhalifax.com

www.greaterhalifax.com