Vanguard Magazine

24 OCTOBER/NOVEMBER 2018 www.vanguardcanada.com PersPeCtiVe Prepared By PricewaterhouseCoopers LLP the modernization of Canada's 12 Hali- fax-Class Frigates. Lockheed Martin Can- ada subsequently won Combat System In- tegrator roles in Chile and New Zealand, through open competitions, against the world's best-known Combat System Inte- grators. Several Lockheed Martin aircraft are used by the Canadian Forces including the CC-130 Hercules, helicopter made by Sikorsky, a Lockheed Martin company. In-service support for these programs also generates substantial economic activ- ity in Canada. Lockheed Martin Canada also provides aircraft sustainment, training simulators, target systems, and electronic warfare systems. Lockheed Martin has been operating in Canada for nearly 80 years across all lines of business supporting both defence and commercial sectors. In 2018, Lockheed Martin retained PricewaterhouseCoopers (PWC) to estimate its economic footprint in Canada over the last 10 years (2008- 2017) and to explore the extent to which this economic footprint supports the Ca- nadian government's priorities. The fol- lowing represents the executive summary of this report and the complete report can be found on www.lockheedmartin.ca. Lockheed Martin Canada has a corporate vision that aligns with the Government of Canada's focus on achieving sustain- able growth for the Canadian economy through innovation and exports and is committed to deploying its resources in a manner that will increase new skills de- velopment. A basic step in achieving these goals is to establish a baseline against which current initiatives and future activities will be benchmarked. Lockheed Martin Corporation began operating in Canada in 1937. This led to the establishment of Lockheed Martin Canada, with its head office based in Ot- tawa. Lockheed Martin Canada represents all of Lockheed Martin Corporation's lines of business, which are: Rotary and Mission Systems, Aeronautics, Missiles and Fire Control, and Space. Currently, its primary focus is on naval Combat Systems Integra- tion and training. A major program for Lockheed Martin Canada is the CMS 330 Combat Management System. This system was developed in Canada and was used in LoCkheed MArtin Study of Economic impact in canada Figure 1: Benefits to the Canadian Economy A B C In addition to Lockheed Martin Canada's activities, Lockheed Martin Corporation purchases intermediate goods from Cana- dian suppliers for aircraft, satellites and other systems assembled in the United States (also referred to in this report as "US"). Lockheed Martin Canada and Lockheed Martin Corporation have relationships with over 1,400 Canadian suppliers who provide inputs for systems assembled in Canada and the US. Canadian suppliers have provided maintenance and parts for Canada's CC- 130 Hercules aircraft, Canada's CC-130J Super Hercules, other nations' Hercules, and F-35 Lightning II fighter jets flown by air forces around the world. Sponsored Content DownStrEAm impACtS Once aircra and systems are in use in Canada, they continue to generate economic activity through sustainment activities carried out in Canada, such as maintenance, training, and upgrades. Because Lockheed Martin Canada's systems are used worldwide, several Canadian sustainment providers have taken advantage of export opportuni- ties, providing similar services to armed forces around the world. rESEArCh AnD DEvElopmEnt ("r&D") Between 2008 and 2017, Lockheed Martin Canada spent $175.4 million on R&D activities, which equates to approximately 11% of the direct GDP it generated during the same period. By comparison, the total R&D spent in Canada is less than 2% GDP. pArtiCipAtion in inDuStry CluStErS Lockheed Martin Canada's presence in regional defence and aerospace clusters in Quebec, Ontario, Atlantic Canada and the Western provinces encour- age competition and provides avenues for partnerships and collaboration that spurs innova- tion and increased productivity.

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