L3 WESCAM Wins Contracts Valued at More Than U.S. $200 Million During First Half of 2017

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  April 6, 2020 | Local, Aerospace

  CAE to implement temporary layoffs, will begin producing ventilators

  CAE announced that it has taken a series of flexible measures to protect its financial position in response to the COVID-19 crisis and mitigate the impact on its employees. The measures include temporarily suspending its common share dividend and share repurchase plan, as well as temporarily laying off 2,600 of its 10,500 employees and placing another 900 employees on a reduced work week. CAE also announced that, in an effort to help save lives, it is developing an easy-to-manufacture ventilator which will provide life support to patients in intensive care. “CAE continues to support its customers as the training services we provide are considered essential around the world. Our civil aviation operations are most affected by the unprecedented disruption of the global air transportation system. At the same time, our defence and security operations are less impacted because CAE provides mission critical services worldwide,” said Marc Parent, CAE's president and CEO. “We entered this crisis from a position of strength with a leading market position, a balanced business with recurring revenue streams, and a solid financial position. Taking decisive yet flexible action will help to protect our people and operations over the short-term and gives us the necessary agility to resume long-term growth when global air travel returns. Our employees have always been at the core of CAE's success, we regret the hardship these temporary measures will cause those affected, especially during these difficult times, and we are grateful to all our employees for their contribution and dedication.” To mitigate the number of temporary layoffs, CAE significantly reduced capital expenditures and R&D investments. The company also announced cost-containment measures, including salary freezes and salary reductions for staff not affected by reduced work weeks (50 per cent for the CEO and executive team, 30 per cent for vice-presidents, 20 per cent for directors and managers, and 10 per cent for group leaders and employees). CAE is working to access government emergency relief measures and wage subsidy programs in its main operating jurisdictions and will assess their impact on its mitigation plans. As details of government assistance programs around the world are finalized, CAE will do everything it can to recall as many employees as possible. Dividend and share repurchase plan (NCIB) suspended CAE's board of directors has approved the suspension of dividend payments to common shareholders until further notice and will review this position on a quarterly basis. Core to its capital allocation priorities, CAE remains committed to paying dividends over the long-term that are commensurate with the long-term growth of its business and will seek to resume dividend payments as soon as it is appropriate. CAE's board of directors has also approved the temporary suspension of all share repurchases under its normal course issuer bid program. CAE provides essential services critical to maintaining customers' operations In civil aviation, training is highly regulated, and for pilots to remain active and to continue to hold their certifications, they must train regularly — usually every six to nine months. While training activities related to new pilot training have decreased substantially, many airlines and business jet operators have continued to conduct recurrent training to maintain the certification of their existing pilots. Two-thirds of CAE's more than 50 civil training centres worldwide continue to be operational, however training utilization is lower than usual as a result of restrictions from border closures and lockdowns that have forced temporary closures and disruptions to operations. In defence and security, as underscored by governments worldwide, CAE's work is considered essential, and its employees are deployed worldwide to actively support training and readiness requirements. Over 90 per cent of CAE's operational sites are still delivering services to support defence forces who must always be prepared and ready in the interest of national security. Playing a role in saving lives in the fight against COVID-19 To help in the fight against COVID-19, CAE Healthcare engineers and scientists have designed in 11 days a simple, maintainable, easy-to-manufacture ventilator prototype to provide life support to patients in intensive care. CAE is currently sourcing components in order to begin production of this ventilator as soon as it is approved by Health Canada. “CAE has employees around the world, and we are all proud of the impact we can have by putting our expertise to work to create a ventilator that can help save lives in the fight against COVID-19,” said Parent. “Once this prototype is approved by public health authorities, we are looking at manufacturing thousands of units in our Montreal plant and in other sites over the next few months.” CAE is also providing complimentary training seminars on how to prepare healthcare workers in the fight against COVID-19. The CAE team is launching simulation-based training solutions, both web and hardware based, to train personnel in the safe practice of ventilation and intubation, which is key to saving lives. This is even more critical right now when ventilation and intubation is being done by healthcare professionals who are not trained for these complex procedures. https://www.skiesmag.com/press-releases/cae-to-implement-temporary-layoffs-amid-covid-19-pandemic

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  July 20, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

  Why it is time for smart protectionism

  Put simply, Canadian governments have a responsibility to practise smart protectionism where the risks to Canadians' personal security and national security are high. Free trade is good economics. Protectionism is bad. Global supply chains are efficient. Favouring domestic goods, services and industries is inefficient. Canada has long adhered to these orthodoxies. And most of the time it makes sense to do so. However, through the COVID-19 pandemic, both the public and private sectors have seen weaknesses associated with heavy or total reliance on foreign sources and global supply chains for essential goods, notably personal protective equipment (PPE). As of June 2, for example, the Government of Canada had ordered close to 122 million N95 masks from international suppliers, yet 12 million had been received and 9.8 million of those failed Canadian standards. We are learning the hard way that foreign sources cannot necessarily supply the products we need in the time, quantity or quality required during a national or global emergency. China, as the dominant global producer of many of these PPE supplies, has become the focal point for an emerging debate around domestic control over certain goods, technologies, and services. A recent report from the Henry Jackson Society in the U.K., for example, has argued the “Five Eyes”—the U.S., U.K., Canada, Australia and New Zealand—are far too reliant on Chinese sources for all kinds of strategically important goods, and that this is a threat to the national security of those countries. The Canadian Security Intelligence Service, too, has warned that Canadian companies that produce certain critical technologies are vulnerable to foreign takeovers by entities with agendas hostile to Canada's interests. This is not just an issue with China, though. In Canada, we like to believe that in national or global crises we can rely on the U.S. or other allies for help. Canada, in other words, would be at or near the front of the line with allies. The COVID-19 pandemic, and the behavior of the U.S. and European countries, suggests this is naive. Italy, a founding EU member, requested and was denied face masks from the EU's stockpile at the peak of their COVID-19 outbreak. In April, a presidential executive order gave the U.S. Federal Emergency Management Agency the power to “allocate to domestic use” several types of PPE that would otherwise be exported. U.S. produced masks bound for Germany, a close American ally, were reportedly diverted back while in transit. Ultimately, Canada was exempt from the U.S. order, but this episode should tell us that global emergencies can lead to “home front comes first” attitudes, even among our closest allies. Fundamentally, the issue comes down to one of efficiency versus necessity. Sometimes, in some areas of the economy, security of supply is more important than efficiency. While this thinking is new to most companies and governments in Canada, it is not new to Canadian companies working in defence and national security. The Canadian defence industry has long highlighted the need for focused sovereign production and control in key national security capabilities—in part to ensure security of supply—as our allies in the U.S., Europe and elsewhere have been doing for generations. The argument has fallen largely on deaf ears. There seems to be a greater aversion in Canada to any kind of protectionism than among our more pragmatic allies. There is also a belief that Canada can always rely on obtaining critical supplies from the U.S., owing to both our close trading relationship and bi-lateral defence agreements dating from the 1950s that purport to establish an integrated North American defence industrial base. Canada puts too much faith in these beliefs, to our peril. While we can still hold free trade and integrated global supply chains as the goal, we also need to recognize that this view of the economy does not always serve our national interests. Put simply, Canadian governments have a responsibility to practise smart protectionism where the risks to Canadians' personal security and national security are high. Christyn Cianfarani is president and CEO of the Canadian Association of Defence and Security Industries (CADSI). The Hill Times https://www.hilltimes.com/wp-content/uploads/2020/07/072020_ht.pdf

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  July 3, 2018 | Local, Naval

  Davie aims to replace Canadian Coast Guard's entire icebreaker fleet

  Kevin Dougherty Shipbuilding firm will start work on icebreaker conversion this summer Chantier Davie Canada Inc., the country's largest shipbuilding firm, is gunning for contracts to build new icebreakers for the Canadian Coast Guard. "Given the age of the Canadian Coast Guard fleet, the entire icebreaker fleet will need to be replaced in the near future," says Alex Vicefield, CEO of Inocea Group, which has owned Davie since 2012. "We have every intention of submitting a world-class proposal together with global leaders in icebreaker design." Until then, Davie, located across the river from Quebec City in Lévis, is in the home stretch of negotiations with the federal government to convert three surplus commercial icebreakers for the Canadian Coast Guard. Under its new management, Davie has made its mark in the industry by turning surplus ships into lower-cost solutions. The first converted icebreaker will be ready in time for the 2018-2019 ice season on the St. Lawrence and Great Lakes. However, when it comes to building new ships, there remain doubts about Davie's ability to deliver at a competitive cost. Canadian ships cost 'twice as much' Marc Gagnon is director, government affairs and regulatory compliance for the Montreal-based Fednav, which operates a fleet of nearly 100 ships. Fednav buys its ships in Japan because, Gagnon says, Canadian-built ships cost "at least twice as much." "Davie no longer has the capacity to build an icebreaker or a frigate," Gagnon said. "To do so, they would have to re-equip their shipyard." Vicefield said Davie is aware of the challenges ahead and has invested $60 million to upgrade its steel-cutting and IT infrastructure. The University of British Columbia's Michael Byers, who argues that Ottawa's current shipbuilding strategy is too costly and needlessly slow, says building government ships in Canada makes sense and Davie is definitely up to the task. "For every $100 million that is spent on building a ship in Canada, you would get several times more than that in terms of knock-on economic activity," Byers said. "And Davie is the logical place to do it. They have a very large shipyard. They have a very capable workforce. The labour costs are relatively low and it's an active shipyard." Asterix 'very impressive' Last year, before Ottawa agreed to sit down with Davie to discuss the icebreaker conversions, Davie delivered the Asterix — a container ship converted into a supply ship for the Royal Canadian Navy — on time and on budget. ​In 2015, when the navy's existing two supply ships were no longer seaworthy, Vicefield and his team proposed converting the Asterix to a naval supply ship for about $600 million. "What they did with the Asterix was very impressive," Byers said. "There is no other shipyard in Canada that could have done that." In comparison, Vancouver-based ​Seaspan was chosen to build two new navy supply ships for $2.6 billion. But the first new supply ship will only be ready in 2020. "This is a cutthroat business and there is a lot of money involved and a lot of politics involved," Byers said. "Davie has the capacity and the experience to build icebreakers, plus they have the lowest costs in terms of labour of any shipyard in the country," he said. The Canadian Coast Guard has an aging fleet of 13 ice-breaking vessels and two hovercraft. Ice still a hazard to navigation Canada's oldest and largest icebreaker, the CCGS Louis S. St-Laurent, was commissioned in 1969. It was to be replaced in 2017 by the CCGS John G. Diefenbaker. But from the initial estimate of $720 million, the Diefenbaker is now expected to cost over $1.4 billion, with delivery in 2022. To meet Ottawa's need for "interim icebreakers," Davie found four icebreakers built for oil and gas drilling off the coast of Alaska that were idled when oil prices fell, putting an end of Shell's Arctic venture. Prime Minister Justin Trudeau agreed to negotiations with Davie to acquire the three smaller ice-breaking vessels, leaving aside the larger Aiviq. With no other shipyard matching Davie's proposal, the conversion work will begin this summer. https://www.cbc.ca/news/canada/montreal/davie-coast-guard-icebreakers-canada-vicefield-byers-gagnon-1.4730332