Lockheed Martin’s Positive Impact on Canada’s Economy
OTTAWA, May 29, 2018 – Lockheed Martin Canada is pleased to accept the findings of an economic impact assessment conducted by Pricewaterhouse Coopers (PwC) LLP which concludes that over the 10 year period 2008 – 2017, Lockheed Martin (NYSE: LMT) created billions of dollars in economic impact, sustained more than 30,000 jobs, produced approximately two billion dollars in export sales of Canadian developed innovation and technology and contributed to the growth of hundreds of small and medium sized businesses.
The findings regarding Lockheed Martin’s economic footprint in Canada from 2008-2017 are as follows:
- $3.8 billion in GDP;
- 36, 521 full time jobs created or sustained;
- $2.5 billion in wages;
- $1.5 billion in total tax impact;
- $2 billion exports of products and services; and
- $1 million plus in philanthropy contributions to not-for-profit organizations.
Lockheed Martin Canada employs approximately 1,000 employees across Canada, where it operates five major site facilities in Victoria, Calgary, Ottawa, Montreal, and Halifax as well as numerous smaller employee sites. It includes a strong Canadian supply chain of 1400 companies of all sizes, in every province and from diverse sectors that support thousands of well-paying middle-class jobs. In 2017, average labour income per direct employee was assessed at $90,527 and average labour income for all employees supported by Lockheed Martin was $77,500. Based on Statistics Canada the report concluded that the annual salary earned by Lockheed Martin Canada employees and their suppliers is above that of employees in similar industries.
“These findings of PwC Canada’s assessment validate our objective of serving as an innovative and trusted defence and aerospace partner in Canada and employing thousands of direct and indirect Canadians in highly skilled jobs,” said Charles Bouchard, chief executive of Lockheed Martin Canada. “The real success in Canada is being at the point where we are now exporting Canadian-made technology and services to customers around the world, including the United States, United Kingdom, New Zealand, South America and the Middle East.”
A majority of the $2 billion in exports is work, services, parts or supplies for US customers. However, new export markets have emerged beyond the US. Leveraging the success of the Halifax class frigate modernization, Lockheed Martin Canada was selected to install modernized combat management systems, based on Canada’s CMS 330 design, for naval ships from New Zealand and Chile. Additionally, Lockheed Martin Commercial Engine Solutions, which is strategically positioned in Montreal’s world-renowned aerospace cluster, services several international commercial airlines and air forces.
As a Globe and Mail annual top 100 R&D ranked contributor in Canada, the report also found that Lockheed Martin generates R&D spending in Canada through three main channels:
- Developing new capabilities within Lockheed Martin Canada, including the innovative Combat Management System CMS 330, which amounted to $18.8 million;
- R&D investment in companies and universities through Canada’s Industrial and Technological Benefits (ITB) program, which amounted to $156.6 million; and
- Acquisition of innovative companies in Canada, including Calgary’s CDL Systems that produces software control stations for unmanned systems, to provide an opportunity for those companies to expand their operations including R&D and commercialization of new technology.
In addition to its economic impact, Lockheed Martin Canada plays an active role in helping to strengthen the quality of life of the communities in which its employees live and work. During the period studied, more than $1 million was provided in philanthropic contributions with a particular focus on organizations that support youth STEM education and military members, veterans, and their families.
Quick Facts: Lockheed Martin’s Economic Impact on Canada
Lockheed Martin contributed close to $4 billion in GDP and 36,521 full time jobs to the Canadian economy.
Lockheed Martin’s business activities have generated $2.5 billion in wages for Canadian workers and $1.5 billion in total tax impact for different levels of government in Canada.
Lockheed Martin’s operations in Canada includes Lockheed Martin Canada, which recently surpassed 1000 employees at its facilities across the country, and a Canadian supply chain of 1400 companies of all sizes and located in every province.
In 2017, the average salary of Lockheed Martin Canada employees was $90,527, which is 28% higher than the average Canadian aerospace product and parts manufacturing salary, and 45% higher than the average computer and electronic product manufacturing salary.
In 2017, the cities in which Lockheed Martin had the greatest overall impact were Montreal, Ottawa, and Halifax.
- $47 million in GDP and 463 direct jobs in Montreal
- $43 million in GDP and 459 direct jobs in Ottawa
- $28 million in GDP and 393 direct jobs in Halifax
Lockheed Martin has exported over $2 billion in Canadian-made technology and services to customers around the world, including the US, UK, New Zealand, Chile and the Middle East.
- Over 90% of exports go to the United States.
- Exports include work that has already begun on the modernization of three Type 23 frigates for the Chilean Navy, projected to provide $69 million dollars in Canadian content value, including both Lockheed Martin and external suppliers, and the modernization of two ANZAC-class frigates for New Zealand, projected to provide $46 million in Canadian content value over the life of the project.
- Lockheed Martin Commercial Engines Solutions (LMCES) in Montreal has been performing Maintenance, Repair and Overhaul engine work for several international commercial airlines and air forces.
All three variants of the F-35 Lightning II, the world’s most advanced fifth-generation fighter jet, have significant Canadian-made technology and components in every jet.
- 110 Canadian suppliers involved over the course of the program.
- $2.3 million USD in Canadian components on every jet.
- $889 million in Canadian GDP supported to date.
To download a copy of the Lockheed Martin Study of Economic Impact in Canada visit our website www.lockheedmartin.ca or to obtain a printed edition plse contact Cindy Tessier at email@example.com.