Yesterday, Bombardier also published a report on the economic benefits of the Global 7500; Price Waterhouse Cooper did it.
It was during the period 2010–2019 that the expenses related to the development of the Global 7500 were made. Quebec got the lion’s share at 53% of spending followed by Ontario at 13%. The remainder was distributed elsewhere on the planet through Bombardier’s supply chain. Since several Canadian suppliers were involved, the R&D expenses made here on the Global 7500 had a cumulative effect.
Price Waterhouse Cooper estimates that the cumulative economic benefits of the Global 7500 have reached $4.8 * billion in Canada. Of this amount, $3.4 billion was in Quebec, $0.8 billion in Ontario and $0.5 billion elsewhere in Canada. Note that these are direct and indirect impacts. It is the salaries paid that have eaten up the bulk of expenses with a total of $3.1 billion, including $2.2 billion in Quebec, $0.6 billion in Ontario and $0.2 billion in the rest of Canada. These salaries provided the various levels of government with $782 * M, including $351 M, for the provinces. For its part, the federal government collected $430 million.
Income and Export
For the 2016–2019 production period, Price Waterhouse Cooper estimates that the economic benefits will be $41.9 * billion in Canada. Here again, it is Quebec that collects the bulk of the revenue with $26.1 billion, which represents 62%. Ontario would get $10.5 billion and the rest of Canada $5.3 billion. As can be seen, the assembly of this business aircraft represents only 25% of the economic benefits. Interior finishing often accounts for the bulk of the fallout in business aviation.
Finally, I would point out that the $41.9 billion in economic benefits will be almost all exported. This is a huge amount that is shifted from the GDP of foreign countries to ours. Governments will collect an average of $176 million in payroll taxes. You can read the full report by clicking here.
Bombardier is one of the largest employers in Quebec, if not the largest, for the furniture trades. The company employs several hundred cabinetmakers and upholsterers. It is also a first choice employer for graduates in this field.
Just developing the Nuage chair for the Global 7500 cost Bombardier several million dollars in R&D. The aircraft manufacturer is arguably one of the Canadian companies that have invested the most in R&D in the furniture sector.>>> Follow us on Facebook and Twitter