The Economic Benefits of the Global 7500
Yesterday, Bombardier also published a report on the economic benefits of the Global 7500; Price Waterhouse Cooper did it.
R&D
It was during the period 2010–2019 that the expenses related to the development of the Global 7500 were made. Quebec got the lion’s share at 53% of spending followed by Ontario at 13%. The remainder was distributed elsewhere on the planet through Bombardier’s supply chain. Since several Canadian suppliers were involved, the R&D expenses made here on the Global 7500 had a cumulative effect.
Price Waterhouse Cooper estimates that the cumulative economic benefits of the Global 7500 have reached $4.8 * billion in Canada. Of this amount, $3.4 billion was in Quebec, $0.8 billion in Ontario and $0.5 billion elsewhere in Canada. Note that these are direct and indirect impacts. It is the salaries paid that have eaten up the bulk of expenses with a total of $3.1 billion, including $2.2 billion in Quebec, $0.6 billion in Ontario and $0.2 billion in the rest of Canada. These salaries provided the various levels of government with $782 * M, including $351 M, for the provinces. For its part, the federal government collected $430 million.
Income and Export
For the 2016–2019 production period, Price Waterhouse Cooper estimates that the economic benefits will be $41.9 * billion in Canada. Here again, it is Quebec that collects the bulk of the revenue with $26.1 billion, which represents 62%. Ontario would get $10.5 billion and the rest of Canada $5.3 billion. As can be seen, the assembly of this business aircraft represents only 25% of the economic benefits. Interior finishing often accounts for the bulk of the fallout in business aviation.
Finally, I would point out that the $41.9 billion in economic benefits will be almost all exported. This is a huge amount that is shifted from the GDP of foreign countries to ours. Governments will collect an average of $176 million in payroll taxes. You can read the full report by clicking here.
Little-Known Fact
Bombardier is one of the largest employers in Quebec, if not the largest, for the furniture trades. The company employs several hundred cabinetmakers and upholsterers. It is also a first choice employer for graduates in this field.
Just developing the Nuage chair for the Global 7500 cost Bombardier several million dollars in R&D. The aircraft manufacturer is arguably one of the Canadian companies that have invested the most in R&D in the furniture sector.
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