(OTTAWA) – October 14, 2009 – EDC’s sector expertise is a competitive advantage for Canadian aerospace companies as they position for economic recovery, EDC President and CEO Eric Siegel said today.
"Through our involvement in a wide array of transactions across every sector of the industry, we have become a known strategic player on the world stage," said Mr. Siegel, who was speaking at the Aerospace Industries Association of Canada (AIAC) annual general meeting in Ottawa.
"We are now at a point where our history helps open doors for Canadian companies, helps leverage private sector involvement, and helps create opportunities in new markets."
Mr. Siegel noted that EDC’s role will be particularly important in the current economic circumstances, when many banks are still feeling the effects of the credit crunch. He stressed that while the role of export credit agencies, including EDC, will be more prominent in aircraft financing for the near to medium-term, it will be essential to continue doing business on commercial principles to ensure that the private sector steps up with additional capacity.
"In the best of times, the capital intensive nature and long gestation periods associated with aerospace products have posed a challenge to the bank lending sector. The number and capacity of banks covering aircraft financing for the airline sector has steadily decreased in the last 10 years. The current challenge facing banks to de-leverage and rebuild their capital bases pretty well ensures this trend will not be reversed in the foreseeable future," he said.
"However, the demand for and availability of export credit agency support should not become a reason not to employ commercial disciplines in judging, pricing and administering credit. This is important because it will hasten the return of greater private sector appetite."
As the Canadian economy begins to show signs of recovery, the aerospace industry is positioning itself to take on new challenges, including new technologies and ventures in emerging markets – and EDC is seeking to maintain its flexibility and grow its involvement in these areas.
"We are well-positioned to take advantage of new opportunities, but the industry is changing fast and we need to be prepared to deal with new challenges," Mr. Siegel said. "EDC will continue to help Canadian aerospace companies overcome those challenges – enabling you to finance more international sales and investments, reducing your credit risk thereby enabling access to more working capital."
EDC is Canada’s export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC’s knowledge and partnerships are used by more than 8,300 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining, a recognized leader in financial reporting and economic analysis, and has been recognized as one of Canada’s Top 100 Employers for nine consecutive years.
-30-
Media contact:
Phil Taylor
Export Development Canada
Tel: (613) 598-2904
Blackberry: ptaylor@edc.ca
