Pitt Meadows Aerospace Strategy Phase II Aerospace... · AVCORP Avcorp Industries located in Delta,...

REPORT:

Pitt Meadows

Aerospace Strategy

Phase II

Prepared for

Pitt Meadows Economic Development Corporation

Prepared by

InterVISTAS Consulting Inc.

December 2011

Pitt Meadows Aerospace Strategy Phase II

December 2011

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Table of Contents

1. Regional and Relevant Foreign Markets .......................................................................... 1 1.1 Aerospace in BC ................................................................................................................. 1

1.1.1 Top aerospace companies in BC ............................................................................ 2 1.1.2 Case Studies of BC Companies in the Global Market ............................................ 3

1.2 Aerospace in Washington State .......................................................................................... 2 1.2.1 Top aerospace companies in Washington .............................................................. 2 1.2.2 Location of Aerospace ............................................................................................ 4 1.2.3 Construction of the Boeing 787 ............................................................................... 4 1.2.4 Washington State Aerospace Cluster ..................................................................... 5

1.3 Incentives for Aerospace Companies .................................................................................. 6 1.4 Recommendations .............................................................................................................. 7

1.4.1 Timing ..................................................................................................................... 7 1.4.2 Opportunity Development ....................................................................................... 8 1.4.3 Currency Issues ...................................................................................................... 8 1.4.4 Competitiveness ..................................................................................................... 8

1.5 Potential Targets ................................................................................................................. 8

2. Selling Airports ................................................................................................................ 11 2.1 Public Marketing ................................................................................................................ 11

2.1.1 Branding ............................................................................................................... 11 2.1.2 Internet Marketing ................................................................................................. 12 2.1.3 Findings ................................................................................................................ 17

2.2 Private Marketing .............................................................................................................. 17 2.2.1 Strategic Plans and Marketing Plans .................................................................... 17 2.2.2 Presenting Opportunity ......................................................................................... 17

2.3 Messages for U.S. Market ................................................................................................. 18

3. Pitt Meadows Airport Corporate Profile ......................................................................... 19 3.1 SWOTCH .......................................................................................................................... 19

3.1.1 Strengths .............................................................................................................. 19 3.1.2 Weaknesses ......................................................................................................... 19 3.1.3 Opportunities ........................................................................................................ 19 3.1.4 Threats .................................................................................................................. 20 3.1.5 Challenges ............................................................................................................ 20

3.2 General Attractiveness ...................................................................................................... 20 3.3 Key Messages ................................................................................................................... 20 3.4 Tools and Options ............................................................................................................. 21

4. Recommendations .......................................................................................................... 23


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1. Regional and Relevant Foreign Markets

The Canadian aerospace industry is poised to grow over the next 20 years. Advancement in technology, research and design should help Canada retain its position as one of the world’s most important aerospace countries. InterVISTAS Consulting Group has been retained by Pitt Meadows Economic Development Corporation to develop Phase II of the Aerospace Strategy for Pitt Meadows airport. This report is a continuation of Phase I. In this report, business opportunities have been reviewed and identified to help Pitt Meadows airport position to target key markets and capture aerospace opportunities the aerospace industry is forecasting.

1.1 Aerospace in BC

In Canada the aerospace sector generated over $24 billion and employed approximately 82,000 Canadians in 2010. Canada as a global leader requires its provinces to equally contribute in this arena to dominate this global sector. It is expected that the global demand for new aircrafts over the next 20 years will almost reach $3 trillion in revenue. The Aerospace Industries Association of Canada (AIAC) projects the number of jobs created to double to 160,000 by 2020.

In British Columbia the industry generates approximately $1.25 billion annually in revenue, 2% of provincial GDP, and 10,000 direct/indirect jobs.1 The industry in BC represents about $3.5 billion in economic activity annually. Specifically, there are approximately 600 companies registered with the Aerospace Industry Association of British Columbia (AIABC). These companies are representative of distributors, suppliers, training institutions, designers, manufacturing and maintenance for aircrafts. Additionally, BC hosts aerospace companies that are leaders in space based information systems, water purification technologies, composite design and production systems.2

The British Columbia Institute of Technology (BCIT) and the University of British Columbia (UBC) offer aerospace programs and engineering training to support aerospace. The BCIT Aerospace Technology Campus located by YVR, for example, offers aircraft maintenance, engineering, avionics, structures and aircraft gas turbine overhaul training.3

1 Aerospace Industries Association of Canada, http://www.aiac.ca/en/member.aspx?id=977

2 Vancouver Economic Development, Aerospace Industry, http://www.vancouvereconomic.com/userfiles/file/MEDIA/Aerospace_Final.pdf

3 Subsequent to the release of this report in 2011, in February 2012 the BC government released the “BC Jobs Plan” which identified aerospace as a potential economic development priority, and attracting international students as important to this goal.

http://www.aiac.ca/en/member.aspx?id=977

http://www.vancouvereconomic.com/userfiles/file/MEDIA/Aerospace_Final.pdf


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1.1.1 Top aerospace companies in BC

The following are profiles of some of the top aerospace companies in BC.

Company

Profile

ASCO Aerospace Canada

8510 River Road, Delta, BC, V4G 1B5

World leader in the co-development, design, precision machining, processing assembly and certification of complex high strength aircraft components. ASCO has over 1,000 employees and operates in three countries. The Canadian division is involved in the production programs: Boeing 737, Boeing 747-800, Boeing 747LCF, Boeing 777, Boeing 787, Bombardier Dash-8, CRJ 700/900 and 1000, and Cessna Sovereign.

AVCORP

10025 River Way, Delta, BC, V4G 1M7

AVCORP designs and builds major airframe structures for some of the world’s leading aircraft companies, including Boeing, Bombardier, and Cessna.

Convergent Manufacturing Technologies

6190 Agronomy Road, Suite 403,

Vancouver, BC, V6T 1Z3

Convergent is a world leader for composite process modelling software and services.

Vector Aerospace

4551 Agar Drive,

Richmond, BC, V7B 1A4

Vector is an independent provider for maintenance, repair and overhaul services for fixed and rotary wing aircrafts.

MTU Maintenance

6020 Russ Baker Way,

Richmond, BC, V7B1B4

MTU is the largest independent provider of commercial engine maintenance services worldwide. The company provides turbine engine repair as well as overhaul services.

Cascade Aerospace

1337 Townline Road, Abbotsford, BC, V2T 6E1

Cascade provides solutions for managing complex, high value, long-term and integrated aircraft service support programs. They are headquartered in at the Abbotsford International Airport and have operations located in the U.S. and France.

Kelowna Flightcraft

5655 Airport Way, Kelowna, BC, V1V 1S1

Kelowna Flightcraft specializes in maintenance and major aircraft modifications.

MDA Corporation

13800 Commerce Parkway, Richmond, BC, V6V 2J3

MDA is an informational systems and products company employing over 3,200 people across Canada. The company is an international leader in earth observation satellite missions and ground systems, airborne surveillance, defence applications and training, transportation, and e-government information solutions. The company supports the information needs of commercial, civil, and military customers around the world.


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1.1.2 Case Studies of BC Companies in the Global Market

The Lower Mainland supports significant aerospace activity, including supporting the Washington State aerospace cluster centred on Boeing and the helicopter sector of aerospace. The strengths of the aerospace industry in the Lower Mainland include:

Helicopter services

Aero engine overhaul

Multi-role aircraft maintenance

Repair and overhaul

Space systems

Advanced composite aerostructures.

The aerospace industry here is supported by one of Canada’s largest aerospace training centres – BCIT, which offers the industry with training at various campuses around the Vancouver area.

Some of the leading BC aerospace firms have been successful in attracting foreign and local services. Outlines of some of these companies are listed below. They are interesting to this project because much of their work comes from the U.S. or foreign markets.

AVCORP

Avcorp Industries located in Delta, BC and they design and build major airframe structures for global aircraft producers including Boeing, Bombardier and Cessna. The company has over 50 years of experience and employs more than 600 skilled employees. Some of the popular cross border contracts that AVCORP has been successful with include supplying Boeing with sub-assemblies and metal bonded components for its 737,747, 767 and 777 aircraft. In addition to the commercial aviation contract, AVCORP was also chosen to provide the initial production supply of outboard wings for the F-35 Lighting II aircraft for the aircraft carrier variant.

Cascade Aerospace

Located at the Abbotsford International Airport, Cascade Aerospace is a specialty aerospace and defence contractor that is primarily focused on providing long-term integrated aircraft support programs for Original Equipment Manufacturers (OEMs), military, government and commercial customers. Its facility in Abbotsford is able to accommodate eight narrow-body aircraft and includes support shops for avionics, electronics, machine shop, structures, paint shop, component repair and overhaul. Some of the local and international clients of Cascade Aerospace include:

Department of National Defence

First Air

WestJet

Lockheed Martin

Bombardier

Viking

CAE

Kelowna Flightcraft

Kelowna Flightcraft is an aircraft maintenance organization and operates two full service aircraft maintenance repair and overhaul facilities in Kelowna, BC and Hamilton, ON Canada. The facilities contain experienced staff that fly, maintain, modify, engineer and paint aircraft. Kelowna Flightcraft is a one stop-shop servicing the global aviation industry. In addition to maintenance, Kelowna


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Flightcraft contains an Air Charter division that is the exclusive air cargo carrier for Purolator Courier Ltd.

The company has provided services to international carriers such as Iceland Air where the installation of winglets to their Boeing 757 aircraft was conducted at their Kelowna base. The company also provides a wide range of services for global clients including aircraft maintenance checks, major modifications and repairs, engine and landing gear overhauls and many other maintenance and overhaul services.

1.2 Aerospace in Washington State

The aerospace industry in Washington State is one of the largest aerospace clusters in the world, generating approximately $35 billion in revenue and 83,000 jobs. The Washington aerospace sector had approximately 153 companies that help make Washington State one of the global leaders in the aerospace industry. State companies also receive a significant amount of projects from the U.S. Department of Defense. Specifically, this represents about $12.2 billion in total economic output to the state and created 191,600 jobs in 2009.4

Like British Columbia, local institutions that offer sector training. The University of Washington (UW) has offered students aeronautical engineering programs since 1929. Today UW offers flexible undergraduate and graduate programs, and executive courses for professionals already in the industry. Other institutions in the state include Everett Community College (Aerospace and Advanced Manufacturing program), Edmonds Community College (Aerospace Training and Research program), and Spokane Community College (Aerospace Training program).

Washington State will continue to be the leader in the aerospace industry. While growth has tapered off with the recession, aerospace employment has remained above 2004 levels. Over the next 20 years, the Washington Aerospace Council projects the industry to grow with a $3.6 trillion market for commercial aircraft.5 Additionally, the Aerospace Council recognizes the changing competitive market that forces companies in the industry to continually innovate. Sustaining growth in this industry would also require the State to invest in education.

1.2.1 Top aerospace companies in Washington

Washington State is home to 650 aerospace related companies. The following are profiles of select well-known aerospace companies in each subsector of the industry in Washington.

4 Washington Quarterly Aerospace Bulletin, vol.2, no.3, October 2010.

5 Washington Council on Aerospace, Report to the Governor and Legislature – February 7, 2011.


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Subsector Company Profile

Airframe Manufacturing

Boeing Company

18001 Canyon Road East,

Frederickson, WA 98373

Boeing is a leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft. They design and manufacture rotorcraft, launch vehicles, advanced information and communication systems. Boeing provides products and support services to over 150 countries.

Avionics Ballard Technology

3229 A Pine Street,

Everett, WA 98201

Ballard Technology is a leader in the development and manufacture of electronic hardware and software for aerospace, industrial, and commercial applications. Ballard began supplying avionic databus interfaces to the aerospace industry in 1986, and was one of the first to realize the potential in using standard computers as the host for specialized test equipment.

Composites Aerojet Company

11411 139th Place NE

Redmond, WA 98052

Aerojet offers extensive experience in the design and manufacture of highly engineered, complex advanced metallic and composite structures. Aerojet produces composite parts for solid rocket motors and engines, satellite structures and specialty items such as over-wrapped tanks, armaments and automotive structures.

Tooling Apache Aerospace Inc.

9700 Harbour Place Suite 223,

Mukilteo, WA 98275

Apache Aerospace provides complete tool management and inventory control solutions with the highest ROI in the Aerospace Industry. They specialize in application driven tools, testing evaluation, tool design and grinding, raw materials, surface finish, edge prep and coating.

Interiors B/E Aerospace

2653 151st Place NE,

Redmond, WA 98052

B/E Aerospace is the worldwide leading manufacturer of aircraft passenger cabin interior products for the commercial and business jet aircraft markets. B/E Aerospace has leading worldwide market shares in all of its major product lines and serves virtually all of the world's airlines, aircraft manufacturers and leasing companies through its direct global sales and customer support organizations.


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1.2.2 Location of Aerospace

The Washington State aerospace cluster is generally located in the area of Seattle, as shown in the map below. King County Airport south of Seattle is home to a significant amount of Boeing aircraft production, including the new Boeing 787.

Location of Washington State Aerospace Firms

Source: Washington State Aerospace Directory

1.2.3 Construction of the Boeing 787

The construction of the Boeing 787 Dreamliner is an example of how an aerospace company reaches out to the global market for production. Previous models of Boeing aircraft were designed built and assembled primarily within the United States. However, the 787 has most major components built and assembled outside of the U.S. All parts are flown, shipped or brought to the factory and final assembly of the aircraft takes place at Boeing’s Washington State plant in Everett. Countries that have manufactured parts or components for the aircraft include Canada, Australia, Japan, Korea and Europe. The following image is a schematic of the origin of different parts for the Boeing 787.


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Source: Boeing

1.2.4 Washington State Aerospace Cluster

Washington is home to a large aerospace economic cluster representing approximately 650 companies that provide support to the aviation and aerospace industry. These companies are often located within the same research parks, making partnership and collaboration for innovation, research and design possible and likely. This economic cluster produces measurable economic output and employment in the region. As with all established clusters, the concentration of aerospace companies allow for increased productivity and innovation so that they can outcompete others regionally and globally. The following are examples of companies that belong to an economic cluster within the aerospace industry.

As an example, Boeing contracts with many companies to build its aircraft. The following table outlines companies in Washington State and BC that support the Washington State aerospace cluster.


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Company Parts/Products Customers

Orion Industries

33929 Ninth Ave S,

Federal Way, WA 98003

Machined aircraft parts Boeing (Seattle, WA) and Sikorsky (New Delhi, India)

GE Company

11400 SE 8th Street, Suite 230

Bellevue, WA 98004

Aircraft engines and maintenance services

Boeing 787 (Seattle, WA) and Airbus A330 (France)

Goodrich

11135 W Wblow Lane,

Spokane, WA 99224

Aircraft wheels, brakes and carbon parts

Boeing 777 (Seattle, WA) and Airbus A350 (France)

Aerojet Company

11411 139th Place NE

Redmond, WA 98052

Aerospace propulsion Department of Defense and National Aeronautics and Space Administration

Avtech Corporation

3400 Wallingford Ave N,

Seattle, WA 98103

Cabins and interior components (i.e., audio systems, switches and lighting)

Boeing 787 (Seattle, WA) and Department of Defence

Eurocopter Canada Ltd.

12251 Riverside Way,

Richmond, BC, V6W 1K8

Spare parts supplier and distribution centre for helicopters

Royal Canadian Mounted Police (Vancouver, BC)

Derco Aerospace Canada

1337 Townline Road,

Abbotsford, BC, V2T 6E1

Supplies materials and supports weapon system management

Canadian Forces (Vancouver, BC)

Viking Air Ltd.

1959 de Havilland Way,

Sidney, BC, V8L5V5

Manufacture aircrafts, supply parts and provides repair services for de Havilland aircrafts

Trans Maldivian Airways (Maldives) and Peruvian Air Force (Peru)

Pacific Avionics

4200 Cowley Cresent,

Richmond, BC, V7B 1B8

Avionics and instruments sales Rockwell Collins (Seattle, Wa) and Universal Avionics (Redmond, WA)

1.3 Incentives for Aerospace Companies

The federal government of Canada funds research institutes and runs the Strategic Aerospace and Defense Initiative (SADI) to foster growth and innovation among aerospace companies. As an example, the government invested $1.96 million in a $6.5 million project completed by AeroMechanical Services Ltd. for research and the development of next–generation communication systems for commercial and military aircraft. This investment, was approved


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through SADI, and has impacted technology firms in southern Alberta and across Canada.6 This, and the program below, are programs which may aid Pitt Meadows develop a new aerospace client in the future.

To further develop this program and identify a new federal framework to help support the aerospace industry, the federal government is currently completing a comprehensive review of all policies and programs. In addition to SADI, most aerospace research and design companies qualify for the Scientific Research and Experimental Development Program (SR&ED). This program is a federal tax incentive program that qualifies non-Canadian companies to receive tax credits of 20% of expenditures. Companies in BC can also receive an additional 10% tax credit for qualifying Canadian and non-Canadian companies that perform research and design in BC.7

Other incentives for aerospace development exist and are supported by different divisions of the federal government. The following is a list of these government agencies who has funded aerospace related opportunities to foster Canada`s global position in this industry.

1. Western Economic Diversification Canada – works to support innovation, business development and community economic development for British Columbia, Alberta, Manitoba and Saskatchewan. The organization has provided: (1) advocacy support by sending delegates to the International Paris Air Show, (2) innovation support by funding a new engine test/icing facility in Thompson, MB, and (3) entrepreneur support by delivering seed funding for the Composites Innovation Centre in Winnipeg, MB.8

2. Human Resources and Skills Development Canada – established the Aboriginal Skills and Employment Partnership (ASEP) program. The program aims to generate employment opportunities for Aboriginal peoples by providing them with the required training and hands-on learning experience for long-term employment opportunities in the aerospace industry.9

3. National Research Council – has established an institute for aerospace research as Canada’s national aerospace laboratory. The institute supports aerospace companies by providing research and design for aviation/aerospace design, manufacturing, performance, use and safety of aerospace vehicles.10

1.4 Recommendations

1.4.1 Timing

Considerations when approaching U.S. companies in the next few years should include these:

The U.S. has been hit harder by the recession than Canada;

6 Investment Will Create Jobs and Keep Canada Cutting-edge, Canada Action Plan 2011, http://www.actionplan.gc.ca/eng/media.asp?id=4068

7 Vancouver Economic Development, Aerospace Industry, http://www.vancouvereconomic.com/userfiles/file/MEDIA/Aerospace_Final.pdf

8 Western Economic Diversification Canada, Success Stories 2009-2010, http://www.wd.gc.ca/eng/12241.asp#e1

9 Human Resources and Skills Development Canada, Aboriginal Aerospace Employment Initiative, http://www.hrsdc.gc.ca/eng/employment/aboriginal_training/projects/project_profiles/aaei.shtml

10 National Research Council Canada, Institute for Aerospace Research, http://www.nrc-cnrc.gc.ca/eng/ibp/iar.html

http://www.actionplan.gc.ca/eng/media.asp?id=4068

http://www.vancouvereconomic.com/userfiles/file/MEDIA/Aerospace_Final.pdf

http://www.wd.gc.ca/eng/12241.asp#e1

http://www.hrsdc.gc.ca/eng/employment/aboriginal_training/projects/project_profiles/aaei.shtml

http://www.nrc-cnrc.gc.ca/eng/ibp/iar.html


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In response to this, the U.S. is entering a protectionist phase it appears;

As aerospace in the U.S. is closely tied to federal spending on defence and research, this may mitigate many short-term opportunities for working with Canadian locations.

These comments are meant to underline that short-term sales opportunities in the U.S. may be difficult to develop, and organizations marketing there need to take a long-term view.

1.4.2 Opportunity Development

Developing opportunities, is similar to developing relationships. They often take time. In the next few years, industry spending can be expected to be slow and careful. Airports should therefore not expect easy, short-term victories. Marketing victories will require insight, patience and solid offerings. This is true for international opportunities at any time, but is especially true in these economic times.

1.4.3 Currency Issues

In recent decades Canada’s dollar has always had a lower value than the U.S. dollar. This has been an advantage for exports and investments. The current strength of the dollar makes Canada less attractive to many U.S. firms. This should be kept in mind when discussing opportunities in the U.S.

1.4.4 Competitiveness

Having commented on currency, Canada remains one of the top, competitive economies in the world, at 12th place, below the U.S. at fifth, as ranked by the World Economic Forum.11

“Canada continues to benefit from highly efficient markets (with its goods, labor, and financial markets ranked 12th, 5th, and 13th, respectively), well-functioning and transparent institutions (11th), and excellent infrastructure (11th). In addition, the country has been successful in nurturing its human resources: it is ranked 6th for health and primary education and 12th for higher education and training. As we have noted in recent years, improving the sophistication and innovative potential of the private sector, with greater R&D spending and producing goods and services higher on the value chain, would enhance Canada’s competitiveness and productive potential going into the future.”

The difference in index ranking between Canada and the U.S. is 5.43. and 5.33. The highest index ranking (Switzerland) is 5.74.

1.5 Potential Targets

The intent of this project is to target companies for Pitt Meadows aviation companies to target within Washington State’s aerospace community. Before looking at specific companies, it is important to consider areas of industry development. Where is the growth going to be? In the next five years, new activity in the aerospace industry in Washington State can be anticipated in the following areas:

11 World Economic Forum, “Global Competitiveness Report, 2010-11.”


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Training. In Washington State, the Aerospace Joint Apprenticeship Committee, plans to introduce standardized training for apprentices and European Aviation Safety Agency (EASA) certification on top of FAA certification. This may create opportunities for Pitt Meadows and potential tenants.

Unmanned aircraft. One of the major developing areas of aviation in North America today is unmanned aircraft for civilian and military purposes.

New B737 family. Boeing has recently announced a new line of aircraft, the B737 MAX aircraft. While this has the same name as the previous B737 series, Boeing is referring to it as a new aircraft family. It is using radically new engine technology. Boeing reports “The 737 MAX will deliver big fuel savings that airlines will need to successfully compete in the future. Airlines will benefit from a 7 percent advantage in operating costs over future competing airplanes as a result of … LEAP engines, more efficient structural design and lower maintenance requirements.” 12 Related opportunities will be large because this size of aircraft is the biggest seller in the world (B737, A320, etc.). As of October 2011, Boeing is producing 35 B737s per month. It plans on increasing that to 38 airplanes a month in the second quarter of 2013 and to 42 airplanes a month in the first half of 2014.

“Boeing has taken a three-fold approach to prepare for the rate increases on the 737 program. The company is making production processes more efficient by working with employee process improvement teams, increasing the production capacity with capital investments such as a new wings system installation line in the Renton factory and making the site footprint more efficient by moving some production areas, expanding others and decommissioning outdated equipment.”13 All of these approaches represent opportunities for Pitt Meadows and B.C.

With all these “big” developing opportunities, is it difficult to quickly identify with whom to speak. As there is no “silver bullet” way of dealing with these opportunities the following contacts are recommended {more to come}:

1. Training. Representatives of the Joint Apprenticeship Committee itself (http://www.ajactraining.org/about-AJAC.html). Organization details are:

Laura Hopkins - Executive Director Aerospace Joint Apprenticeship Committee 6770 East Marginal Way South, Bldg A-106 Seattle, WA 98108 phone: 206 764-7940 fax: 206 764-5329

2. Unmanned Aircraft. Boeing subsidiary Insitu, Inc. Contact information is

Insitu, Inc. 118 East Columbia River Way

12 Boeing, “Boeing Introduces 737 MAX With Launch of New Aircraft Family,” 30 August 2011.

13 Boeing, “Boeing Beings Production at Higher Rates,” 18 October 2011.


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Bingen, WA 98605 phone: 509 493-8600 fax: 509 493-8601

Bingen is near Portland, Oregon. Ms. Esina Alic is the Vice President, Global Supply Base Management for Insitu. I suggest contacting her and seeing who she recommends speaking with.

3. B737. Reaching out to Boeing via an intermediary Boeing is a very large organization and the most likely scenario for Pitt Meadows is attracting a sub-contractor to Boeing. The Assistant Director (airport manager) for King County Airport (Boeing Field) was formerly airport manager at Abbotsford, is friendly, and should be a useful resource for Pitt Meadows Airport. His contact details are Mike Colmant, (206) 296-7380, and [email protected]. He can provide useful market intelligence and contacts, and recommend who to approach when you decide to proceed, but remember he will be doing this as a favour, so do not expect too much from him in time. Boeing is based at the site and he knows the organization and its executives well.

The Washington State aerospace industry is supporting the Aerospace & Defense Supplier Summit Seattle 2012, in mid-March, 2012. Sending a couple of representatives to this to meet industry contacts, see real-time industry trends, and hear international experts is probably worthwhile for airport representatives, and could be coordinated with introductory meetings in Washington State.

The event web site is http://www.bciaerospace.com/seattle/.

As there are identified linkages between these areas of development and Pitt Meadows now, initial connections have to be exploratory, and development of opportunities would have to be viewed as multi-year initiatives.


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2. Selling Airports

There are many airports are models of good practices in terms of selling services and aerospace opportunities. This section examines the North Bay, Kamloops, London and Boundary Bay airports, and lessons for Pitt Meadows.

Information pertaining to both major and regional airports is increasingly available through electronic media. Airports typically have a website that provides information such as commercial flight times, location, contact information and business opportunities. Other good practices include the branding and the marketing of the airport in order to align them with the local community. Branding examples may be as simple as a logo redesign or name change and common marketing practices to focus the airports’ direction may be done via annual general meetings or strategic plans.

2.1 Public Marketing

2.1.1 Branding

Airports may brand their services and operations in a variety of ways. Some recent trends of airport branding include logo and name changes. This type of branding allows the airport to connect with the local community and establish a clear identity. Examples of airports that have changed their names or logo in order to re-brand themselves are highlighted in Table 2-1 below. Pitt Meadows has also recently changed its logo.

Table 2-1: Examples of airport name and logo changes

Old Logo New Logo Old Name New Name

Vancouver International Airport Authority

Vancouver Airport Authority

Fort Nelson Airport Northern Rockies Regional Airport

Castlegar Airport West Kootenay Regional Airport

Terrace Airport Northwest Regional Airport


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Although the airports still operate in the same manner in some cases the name change was completed in order to foster a sense of community with the airport. For instance the Terrace Airport serves both Terrace and Kitimat, and surrounding area. Renaming the airport the Northwest Regional Airport provides a sense of community between the airport’s market region and the airport. The same came be said for the names changes of the airports in both Castlegar and Fort Nelson.

Vision Statement. Another example of branding is the creation of a mission/mandate and vision statements. These statements define the outlook for the airports plan and development and help provide a guide towards future goals. An example of an airport that has incorporated business development with respect to aviation and aerospace development is North Bay Jack Garland Airport Corporation. Their vision statement is:

NBJGA Corporation will respond to regional economic development initiatives and pursue a growth strategy that will increase air traffic, build strategic partnerships, increase utilization of current assets and attract new aviation/aerospace businesses.

This vision statement primarily focuses not only on the common airport development such as passenger traffic but economic, business and aerospace development within the airport. In other words the airport is looking to expand their business development outside of the traditional passenger and air traffic growth.

2.1.2 Internet Marketing

Websites

A review of these airport websites reveal that some (North Bay, Kamloops and Boundary Bay) contain substantial information regarding business opportunities and development potential. Unless there is a competitive reason for hiding information, more is probably better. If someone is looking for this information they are probably interested, and more information helps them understand what the site has to offer.

The following series of graphics highlight the main page of each highlighted airport website, showing the visible link to the business opportunities pages which is highlighted with green shadings.


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North Bay Airport (main page)

North Bay Airport (Aerospace/Aviation Park page)


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North Bay Airport contains direct links to development, aerospace and aviation park opportunities. This allows the user to quick identify what and how much land is available to lease as well as the location of these parcels on the airport. Having this information readily available makes it more attractive for potential developers to determine their interest at the airport even prior to making formal contact with the airport management.

Kamloops Airport (main page)

Kamloops Airport (Business Development Page)


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Similar to North Bay Airport, the Kamloops airport website is structured so that the main page contains flight information as well as general information for the airport. Once again when reviewing land leasing and purchasing opportunities at the airport, the website contains specific information regarding facilities, type and amount of land available for development and past trends in passenger and aircraft traffic at the airport.

London International Airport (main page)

London Airport (business development page)


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The London airport website is slightly different than the two aforementioned airports of North Bay and Kamloops. Although the airport website provides a direct link the businesses located at the airport, little to no information can be found with respect to leasing or purchasing opportunities at the airport. This site is similar to Pitt Meadows in that it lists the various types of businesses located at the airport but does not provide details or graphics with regards to the amount or location of land available for development.

Boundary Bay Airport (main page)

Boundary Bay Airport (Business Development Page)


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The airport website for Boundary Bay is similar to both London and Kamloops airport in that it outlines available parcels of land for development. This allows for developers and potential investors to get an idea of how much space currently remains for development as well as potential business opportunities.

2.1.3 Findings

Many airports now use websites in order to promote their airports and the associated activities that they are looking to attract. Airports now update their sites to include more and more information, rather than just providing passenger services such as flight departure and arrival information. It is recommended that the Pitt Meadows Airport examine additional websites and consider providing additional information such as maps and inventory of available land in order to reach out to attract aerospace opportunities.

In addition to the website, annual general meetings and strategic plans are excellent tools to focus the future outlook and vision for the airport. While the vision of the airport is to be “The Gateway to Metro Vancouver and BC”, a direction is needed on how this needs to be achieved. With the amount of developable land surrounding the airport, a strong marketing or strategic plan will be required in order to chase and attract aerospace opportunities to the airport.

2.2 Private Marketing

2.2.1 Strategic Plans and Marketing Plans

Airports utilize strategic plans and marketing plans to develop a forward looking vision for the development of the airport, whether it be for air service development, commercial development or marketing. This is a best practice that helps focus the airport on its future outlook and growth with respect to the market.

An example of an outcome from a strategic plan was the updating of the North Bay website which is now used as a tool to assist in the long term development of the airport property as industrial lands in addition to promoting the airport to the aviation community.

Strategic and Marketing Plans are often regarded as confidential by airports because the information within them can be used by competitors as well as the airport. In other words, an airport or organization takes considerable time and effort to develop a marketing strategy and does not want to give it away quickly or lightly. A typical marketing plan will contain an overview of the market and trends, identification of the airport’s competitive advantage and targets who would benefit from these, and a plan for approaching these targets. Many plans have specific goals tied to a time frame, for example, one new tenant within two years.

2.2.2 Presenting Opportunity

In InterVISTAS’ diverse experience, the key to winning a client over and developing a new client is presenting the opportunity, usually in person. (Having said this, the opportunity to be presented must have genuine merit to the organization or person to be contacted.) The presentation will include preparing materials which can be left with the client, including MS PowerPoint presentations or MS Word documents. The process of preparing these helps to clarify the message to be communicated and the benefits of the proposal to the client. Once a clear target has been identified, a meeting will be set up with the target to discuss the opportunity. While public


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marketing materials raise the profile of your opportunity and attract interest, the key to closing many arrangements is the quality of meeting with the potential client, discussing the opportunity, responding to their interests and concerns, and developing the final proposal they require to move forward with the agreement.

A typical proposal to a client like this is a brief MS PowerPoint or MS Word document that directly addresses the needs and interests of the potential client. These are typically no more than 10-20 pages long because longer proposals will probably not be read. These types of proposals require a detailed understanding of what the client wants, because the intent is to show them how the facility you are offering matches their needs. These types of proposals therefore require a detailed understanding of the market and the business operations of the company being proposed to. The typical development of a proposal like this will be:

1. Understanding of the Client 2. What the proposer has to offer 3. How is meets the needs of the Client 4. The proposal itself

While these types of documents are typically very brief, it is critical that the proposer understand the client and the industry, so that the proposal speaks directly to the commercial needs of the proposed client.

2.3 Messages for U.S. Market

On the PMEDC / Airport web sites the following types of information, commitments, and links would be required. Some of these are informational. Others will require developing formal relationships with senior government and other partners. Many of these might be brief, but they help develop a complete picture of support and desirability. This would also provide an overview for a PowerPoint discussion.

Available land, services and zoning at the airport and surrounding lands-- the airport has a lot of available land.

Nature and cost of basic airport leases, and services. (Much of this is already on the airport site)

Statements of provincial and federal support. This could be as simple as logos and references to appropriate programs, but it requires obtaining permissions.

Descriptions of tax benefits, programs or grants available. U.S. development agencies are typically explicit about what incentives they can offer potential investors.

Link to materials on the attractiveness of the community.

Information on relevant training programs and institutions.

Statements of support from local politicians.


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3. Pitt Meadows Airport Corporate Profile

Airports require a corporate profile similar to businesses to explain who they are and what they have to offer. A strategic approach which provides the target audience with the most important information is recommended. The following section provides Pitt Meadows with the basis for developing a corporate profile for the airport.

3.1 SWOTCH

This SWOTCH (strengths, weaknesses, opportunities, threats, and challenges) analysis was developed in consultation with airport stakeholders and management in Phase I of this project, a previous report. The highlights of each section are described below followed by a summary discussion.

3.1.1 Strengths

The airport has significant land reserves and is near an industrial park, and the Lower Mainland is running out of industrial lands;

The Lower Mainland is one of the most important helicopter maintenance centres in the world; Helicopter experts live in the area There is a “deep pool” of helicopter expertise Helicopter operations already exist on the field

Airport is moving towards stable planning The new Golden Ears Bridge opens significant business opportunities and makes business

with the U.S. possible Pitt Meadows offers a great lifestyle to employees and is a popular location for young families The neighbouring community of the District of Maple Ridge is supporting airport development The City of Pitt Meadows, Pitt Meadows Economic Development Corporation, and the Pitt

Meadows Airport Society are working together towards a common vision The airport is near major intermodal infrastructure including a rail /intermodal yard, river

terminals, and truck terminals The airport and the area around it have available industrial lands at a time when industrial

lands in the Lower Mainland are in short supply

3.1.2 Weaknesses

Development at the airport site is fragmented The site does not have an integrated master plan The site has no major educational or aerospace developments The site has limitations on the size of aircraft it can receive because of runway length The airport does not have passenger service which cuts it off from federal ACAP funding Airport is not regarded as an aerospace player in the BC or Canadian markets

3.1.3 Opportunities

In the coming years, YVR sill increasingly use up all of its available commercial lands, increasing the costs of leases, and pushing some tenants to other Lower Mainland airports


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Expand into MRO for corporate jets Modifications and upgrades Corporate market fell off with recession but will recover Maintenance companies would like to be in a place where they are important Small aircraft manufacturing Attracting workers who have been overseas who are looking for work at home Extending main runway to attract larger corporate aircraft Flight training General light industry and transportation

3.1.4 Threats

Pitt Meadows may not be viewed as the most business friendly destination Other Lower Mainland opportunities continuing to attract more industry attention and

investment

3.1.5 Challenges

Integrating on and off airport land opportunities in Pitt Meadows Developing an attractive airport investment reputation for Pitt Meadows Coordinating development initiatives including the Cities of Pitt Meadows and Maple Ridge,

PMEDC, and the Pitt Meadows Airport Society Airport location on a floodplain Airport 10-year plan needs to be updated and guided by clear vision

3.2 General Attractiveness

Pitt Meadows is attractive as a community and a place to live and work. Typically investors will look at a basket of key indicators when considering a community, all things being equal. This assumes that access to items like electricity and water, or specialized services is not an issue. These indicators will be something like:

1. Availability of skilled workforce (critical in these days in shrinking labour pools);

2. Attractiveness of community to employees (schools, parks, amenities);

3. Cost competitiveness and ease of doing business (site and industry specific issues/access to clients and business);

4. Political/community environment (community, municipal, provincial, and federal politics. Businesses want to think they will be supported where they base themselves); and

5. Industry specific factors (e.g. aviation needs access to an airport).

Pitt Meadows measures well against other communities considering all these indicators.

3.3 Key Messages

Locational decision-making is an area of expertise in its own right. Aerospace companies are one particular type of company making site decisions. Keys to locational decision-making include worker availability, community assets, and continuing education. PMEDC and the airport can provide key information in a concise manner to attract businesses that could assemble into


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aerospace cluster. The following are key messages identified as important information for PMEDC to communicate.

Land Available: is important information for companies wanting to relocate or establish offices or manufacturing operations near an airport. The amount of land available on-airport and off-airport sites is a good indicator of land available for development and future expansion capacities.

Community Information: can provide population and demographics information to understand the scale of the community. Additional information that discusses the community lifestyle and local attractions can also illustrate the well-being and stability of a community.

Local economy: information is often produced by airport authorities to describe the economic impact of its operation and impact locally and regionally in regards to direct, induced, and in-direct economic impacts.

Workforce: information is key information that will help businesses understand whether there is a supply of skilled workforce in the community to sustain its operations.

Educational Institution: information is important as it provides businesses with a continuous supply of skilled workforce or training requirements for aerospace companies to maintain their educational levels.

Building on these themes, the following text box provides a draft corporate profile building on the text on the home page of the airport web site. This draft builds on the themes above.

3.4 Tools and Options

There are several methods in delivering key messages to attract aerospace companies to relocate or establish a branch at Pitt Meadows. The following represent some of the tools and options other airports are employing to deliver key messages.

Brochures: brochures are commonly used by the airport as a means of integrating the airport operation into the social fabric of a community. They can also be used as method of providing

Pitt Meadows Airport is your gateway to the Lower Mainland and Fraser Valley regions.

Located in Pitt Meadows, BC, north of the Fraser River, The Airport consists of one 1,310-metre and two 762-metre paved runways and a staffed control tower. It is the home base for three major rotary wing operations, provides a float plane dock and ramp, and serves approximately 225 locally based float and regular aircraft. Businesses at the airport offer a variety of both aviation and non-aviation services.

The airport and adjacent city land have significant land available for aviation and related light industrial activity. Pitt Meadows is one of the most attractive communities to move to in B.C., and its population is growing rapidly. The community is particularly attractive for young families, and has good educational institutions in the community or nearby, from elementary school through post-secondary education. Recent completion of the Golden Ears Bridge across the Fraser River has opened Pitt Meadows for increased industrial and commercial activity.

Services at YPK include:

•Aviation support services, fuel sales, hangars, and engineering

•Flight training

•Scheduled passenger service

•Charter Service

•Avionics sale and service

•Aircraft painting

•Aircraft sales and repair


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important messages in a concise format when airport managers network or target aerospace companies.

Websites: needs to be designed concisely to provide information businesses owners need in understanding more about the airport, its operations and available land. As mentioned in the previous section, websites can be used to highlight land availabilities and lease opportunities for on- and off-airport properties.

Aerospace Conferences: can be a venue for networking and communicating key messages to aerospace companies. Networking and continuous dialogue is integral to relationship development with aerospace companies. Understanding the aerospace industry also helps identify trends and available partnerships for collaborating with specific companies to locate their business at the airport. Seattle is hosting a major aerospace conference in 2012.

Collaboration / Partnerships: with aerospace organizations, business community and educational institutions is important in developing critical mass and solidifying your key messages.


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4. Recommendations

Based on the findings in this report, the following recommendations are made. These are actions for the community to be taken, and they could be taken by the airport, the economic development corporation or potentially other individuals or organizations in the community, assuming they are all working together.

1. Regional and Foreign Markets. To develop aerospace opportunities, the community will have to directly connect with aerospace opportunities. Given that BC and Washington State contains one of the largest markets in the aerospace industry, attention must be paid to discover a market niche that would be attractive to the Pitt Meadows Airport. As mentioned in phase I of the report the following order for prioritizing approaching aerospace operators is recommended:

i. First in the Lower Mainland

ii. Second in the Okanagan, Thompson, and Vancouver Island

iii. Third in Washington State

Consideration may also be given to attracting a subsidiary of companies in order to expand their global reach in the marketplace. Examples of companies both past and present that have set up successful subsidiaries in the Vancouver area include both Boeing and Eurocopter. In order to attract both local and foreign aerospace companies, it is also import to investigate further the funds the federal government of Canada has with regards to research institutes and the Strategic Aerospace and Defense Initiative (SADI) to foster growth and innovation among aerospace companies. In this report three areas of development in Washington State have been identified for exploratory meetings and information gathering and are discussed further in Section 1. These are related to areas of aviation and aerospace growth: 1. Training.

2. Unmanned Aircraft.

3. B737 program expansion.

2. Selling the Airport.

Websites are now the primary means that airports use for promoting themselves and associated activities. Airports update their sites to include more and more information. It is recommended that the Pitt Meadows Airport and/or PMEDC consider providing additional information such as maps and inventory of available land in order to reach out to attract aerospace opportunities.

To clearly articulate the offering, the airport should develop a strategic plan and marketing plan to articulate a forward looking vision for the development of the airport, whether it be for air service development, commercial development or marketing. This is a best practice that helps focus the


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airport on its future outlook and growth with respect to the market, and helps articulate to potential customers whether this is an appropriate place for them.

Beyond general marketing, the key to developing a new client is presenting the opportunity in person. The presentation will include preparing materials which can be left with the client, including MS PowerPoint presentations or MS Word documents. While public marketing materials raise the profile of your opportunity and attract interest, the key to closing deals is the quality of meeting with the potential client, discussing the opportunity, responding to their interests and concerns, and developing the final proposal they require to move forward with the agreement.

A typical proposal to a client like this is a brief MS PowerPoint or MS Word document that directly addresses the needs and interests of the potential client. These are typically no more than 10-20 pages long because longer proposals will probably not be read. These types of proposals require a detailed understanding of what the client wants, because the intent is to show them how the facility you are offering matches their needs.

The type of information that would be attractive to U.S. market targets includes the following points:

Available land, services and zoning at the airport and surrounding lands-- the airport has a lot of available land.

Nature and cost of basic airport leases, and services. (Much of this is already on the airport site)

Statements of provincial and federal support. This could be as simple as logos and references to appropriate programs, but it requires obtaining permissions.

Descriptions of tax benefits, programs or grants available. U.S. development agencies are typically explicit about what incentives they can offer potential investors.

Link to materials on the attractiveness of the community.

Information on relevant training programs and institutions.

Statements of support from local politicians.

As the airport does not have a strategic or a marketing plan at this point, the content or nature of the marketing message must be based upon the existing general strengths and opportunities at the site, rather than a focused effort.

It is therefore recommended that the airport provide a more public connection to PMEDC and work with it.

As the airport is planning to undertake strategic initiatives in 2012 which may make marketing materials quickly redundant, it is recommended that PMEDC develop only high level general materials such as tri-fold or four page brochures in the short-term, and develop more comprehensive materials after the airport has clarified its strategic direction.

Prepared by InterVISTAS Consulting Inc.

Airport Square – Suite 550 1200 West 73rd Avenue

Vancouver, BC Canada V6P 6G5

Telephone: 604-717-1800 Facsimile: 604-717-1818

www.intervistas.com

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