Calgary’s Aerospace Sector Takes Flight Amid Energy Dominance

Calgary, a city synonymous with oil and gas, is quietly emerging as a formidable player in the aerospace and defence sector. With 158 companies currently operating in the field, the industry contributed $3.1 billion to Alberta’s gross domestic product in 2024 alone. Yet, despite its growing footprint, the sector has largely remained under the radar, overshadowed by the province’s dominant energy sector.

“There’s a tremendous amount of defence and aerospace activities happening that most people are not even aware of,” said Jeff LaFrenz, president of VizWorX, a tech company specialising in virtual reality platforms for military applications. “The energy industry tends to dominate a lot of the discourse, which can drown out developments in the aerospace field.”

This dynamic may be shifting. This week, Boeing, Ottawa, and Calgary Economic Development announced a new initiative to fast-track the commercialisation of Canadian-made defence technologies and help local companies secure new clients. The partnership is part of Boeing’s commitment to invest in Canadian aerospace and defence as part of a contract to replace the country’s aging maritime patrol aircraft. A Boeing spokesperson indicated that this is just the first of several Alberta-focused announcements to come.

The initiative comes at a time when Calgary is experiencing a wave of aviation-related developments. WestJet, the country’s second-largest airline, recently placed its largest-ever aircraft order. Meanwhile, Lufthansa Technik announced plans for a multi-billion-dollar aircraft maintenance facility at Calgary International Airport, and Canadian Aviation Electronics (CAE) revealed intentions to build a 126,000-square-foot aviation training facility in the city. De Havilland Canada also plans to break ground on a 1,500-acre aircraft manufacturing facility east of Calgary, which will serve as the company’s new headquarters.

Nicole Holinaty, a director with Calgary-based aircraft maintenance company HeavyAero, highlighted the overlap between commercial and defence aerospace. “An airplane engine is an airplane engine,” she said, noting that the company has recently begun exploring defence opportunities. However, she cautioned that regulatory hurdles can make it difficult for companies to enter the defence sector. “There’s a lot of hurdles that exist in terms of getting your innovation into the defence market,” Holinaty said. She hopes the Boeing initiative will help streamline the process.

Kimberley Van Vliet, whose organisation ConvergX will run the commercialisation program, suggested that the initiative could also bridge gaps between different industries. For example, an oil and water separator used in the energy sector could be repurposed for shipbuilding, while a radar system developed for defence could find applications in mining.

One significant challenge facing Calgary’s aerospace ambitions is human resources. Neil Sweeney, vice-president of De Havilland Canada, noted that many of the company’s 500 engineers are nearing retirement. “That’s the only thing that can really hold back the sector—not only in Alberta but in Canada,” he said.

John Gradek, an aviation expert and lecturer at McGill University, agreed that talent shortages could hinder growth. While Calgary is still far from rivaling Montreal—a global aerospace hub—Gradek believes the city is steadily climbing the ranks in Canada. However, he emphasised that without more dedicated post-secondary training programs to cultivate a new generation of aerospace workers, the sector’s expansion will be limited.

Despite these challenges, there is optimism that Calgary and Alberta can carve out a larger share of Canada’s aerospace and defence industry. With Ottawa pledging increased defence spending and prioritising domestic industrial benefits, local companies are well-positioned to capitalise on new opportunities.

“We have an opportunity as a province to really come together around aerospace and defence,” LaFrenz said. “I think we can rival any location in the world if we choose to do so.”

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