May 19, 2020

Canadian Aerospace Industry Sees 6.7% Revenue Increase

Bombardier
Aircraft Manufacturing
aerospace industry
AIAC
Bizclik Editor
2 min
Canadian Aerospace Industry Sees 6.7% Revenue Increase

 

The Aerospace Industries Association of Canada (AIAC) announced today its performance results for the Canadian aerospace industry in 2011.  Seeing a total of $22.4 billion industry revenue, the aerospace industry saw a 6.7 per cent revenue increase compared to 2010. Leading revenue increases was aircraft, aircraft part and component production, bringing in a total of $11 billion, the segment totalled 49 per cent of overall revenues.

Revenue wasn’t the only area the aerospace industry saw increases. Employment in aerospace reached a total of 87,200 workers, 19,000 specifically as engineer and scientific staff, a 7.6 per cent increase from 2010.

Aerospace sales were led by exports, generating $16.4 billion, while domestic sales brought in $6 billion. The Canadian aerospace goods and services largest market is still the US, where export sales total 60 per cent of the industry at $9.8 billion. Export territories that saw increase in 2011 was the European Union, which generated $3.4 billion.

The Canadian aerospace industry’s commitment to R&D was also reflected in 2011, with expenditures increasing to $2 billion. This promotion of additional R&D was encouraged by support from SR&ED and the Strategic Aerospace and Defence Iniitative (SADI).

“The aerospace industry’s performance for 2011 demonstrates the important contribution this sector continues to makes to the Canadian economy,” said Jim Quick, President and CEO of AIAC. “The considerable increase in R&D investments reaffirms aerospace’s position as one of Canada’s largest industrial contributors to research and development.”

 

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The AIAC additionally stated that the industry is confident in the potential for additional growth. 60 per cent of respodnants to the AIAC annula survey forecasted hiring increases of up to 15 per cent by 2016.

“2011 was a successful year for Canada’s aerospace industry,” said Quick. “In a highly competitive global market, we must continue to build on these achievements.  The ongoing Aerospace Review will be the cornerstone to maintaining our industry’s competitive edge and remain a world leader in this growing high-tech industry.”

This increase is not a surprise as industry leader Bombardier has had a good last few weeks with contracts to produce up to 45 Bombardier Q400 aircrafts for WestJet, a confirmed order for 6 Bombardier CRJ900 NextGen Aircraft for China Express, a request for an order for up to 15 Bombardier CSeries Airliners, and Jazz Aviation’s long term agreement for 15 Q400 NextGen turboprops. With this much traction for Bombardier in early and mid-2012, it will be interesting to see what the AIAC sees in the industry in 2012. 

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Jun 8, 2021

Six issues at the top of tax and finance leaders’ agenda

Tax
Compliance
financeleaders
Deloitte
Kate Birch
4 min
As businesses accelerate their transformation journeys, tax leaders are under increasing pressure to add strategic value. Deloitte reveals six tax trends

New Deloitte research reveals that tax leaders are under increasing pressure to add strategic value as companies accelerate business model transformation, from undergoing digital transformations to rethinking their supply chains or investing in green initiatives.

According to Phil Mills, Deloitte Global Tax & Legal Leader, to “truly deliver value to the business, the tax function needs to rethink its resourcing model and transform its technology infrastructure to create capacity and control costs”.

And the good news, according to Mills, is that tax and business leaders have more options at their disposal to achieve this.

Reflecting the insights of global tax and finance executives at global companies, Deloitte’s Tax Operations in Focus study reveals the six issues at the top of tax and finance leaders’ agenda.

Trend 1: Businesses seek more strategic counsel from tax

Companies are being pushed to develop new digital products and distribution channels and accelerate sustainable transformation and this is taking them into uncharted tax territory. Tax leaders say their teams must have the resources and skills to give deeper advisory support on digital business models (65%), supply chain restructuring (49%) and sustainability (48%) over the next two years. This means redrawing the boundaries of what tax professionals focus on, and accelerating adoption of advanced technologies and lower-cost resourcing models to meet compliance requirements and free up time.

According to Joanne Walker, Group Tax Director, BT Group PLC, "There’s still a heavy compliance load today, but the vision for the future would be that much of that falls away, and tax people become subject matter experts who help program the machine, ensure quality control, and redirect their time to advisory activity.”

Trend 2: Tipping point for resourcing models

Business partnering demands in the tax department are on the rise, but 93% of tax leaders say their department’s budget is remaining flat or falling. To ensure that the tax function can redefine itself as a strategic function at the pace that is required, leaders are choosing to move increasing amounts of compliance and reporting to a combination of shared service centers, finance departments, and outsourcing providers that have invested in best-in-class technology.

Trend 3: Digital tax administration is moving faster than expected

in addition to the rising focus of the corporate tax department partnering with their business counterparts, transformative changes to the way companies share tax information with revenue authorities is also creating an imperative to modernize operations at a faster pace. Nine in 10 (92%) respondents say that shifting revenue authority demands on digital tax administration will have a moderate or high impact on tax operations and resources over the next five years—and several heads of tax said the trend is moving faster than expected.

"It’s really stepped up in the last couple of years," says Anna Elphick, VP Tax, Unilever. "Tax authorities don't just want a faster turnaround for compliance but access into a company’s systems. It's not unreasonable to think that in a much shorter time than we expect, compliance will be about companies reviewing a return that's been drafted by the tax authorities."

Trend 4: Data simplification and lower-cost resourcing are top priorities

Tax leaders said that simplifying data management (53%) and moving to lower-cost resourcing models (51%) must be prioritized if tax is to become more proactive at delivering strategic insights to the business. Many tax teams are ensuring that they have a seat at the table as ERP systems are overhauled, which is paying dividends: 56% of those that have introduced NextGen ERP systems are now highly effective at supporting the business with scenario-modeling insights. Only 35% of those with moderate to low use of NextGen ERP systems said the same.

At Stryker, “we automated the source P&L process for transfer pricing which took a huge burden off of the divisions," says David Furgason, Vice President Tax. "Then we created a transfer price database to deposit and retrieve data so we have limited impact on the divisions. We are moving to a single ERP platform which will help us make take the next step with robotics.”

Trend 5: Skillsets are shifting

Embedding a new data infrastructure and redesigning processes are critical for the future tax vision. Tax leaders are aligned — data skills (45%) and technology process experience (43%) are ‘must have’ skills in a tax department of the future, but more traditional tax specialist knowledge also remains key (40%). The trick to success will be in tax leaders facilitating the way these professionals, with their different backgrounds, can work together collectively to unlock lasting value.

Take Infineon Technologies, which formed a VAT technology and governance group "that has the right knowledge about how to change the system to ensure it generates the right reports", according to Matthias Schubert, Global Head of Tax. "Involving them early was key as we took a greenfield approach, so we could think about what the optimal processes would look like and how more intelligent systems could make an impact 

Trend 6: 2020 brought productivity improvements

Improved productivity (50%) and accelerating shifts to remote working (48%) were cited as the biggest operational benefits to emerge from COVID-19-driven disruption. But, as 78% of leaders now plan to embed either hybrid or fully remote models in the tax function long term, 34% say maintaining productivity benefits is a top concern. And, as leaders think about building their talent pipeline and strengthening advisory skill sets, 47% say they must prioritize new approaches to talent recognition and career development over the next two years, while 36% say new processes for involving tax in business strategy decisions must be established.

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