Arizona is a key component in the global aerospace and defense (A&D) arena and has historically been home to top A&D companies and military bases. The Canada Arizona Business Council (CABC) realizes the opportunity that Arizona and Canada have to be even more successful in retaining and expanding this industry sector. This partnership possesses all of the crucial assets to become the leader in North America’s aerospace and defense industry. This is one of the Council’s most important initiatives to date.
The State’s aerospace and defense industry has evolved since the mid-20th century. Arizona has been home to major military bases such as Davis-Monthan Air Force Base, Fort Huachuca, Luke Air Force Base, and Marine Corps Air Station Yuma. The bases and military presence are some of the main contributors leading to Arizona’s robust aerospace and defense industry. In addition, Arizona’s favorable flying conditions are ideal for both military and commercial aviation test aircraft development and pilot training.
Several major aerospace and defense prime contractors are operating in Arizona and Canada, and include Bombardier, StandardAero, Canadian Aviation Electronics Ltd., Boeing (Apache Helicopter), Raytheon Missiles & Defense, Honeywell, Lockheed Martin, Northrop Grumman, and many others. These top companies operate in both Arizona and Canada and engage in diversified activities. The partnership between Canada and Arizona covers various activities, including research and development and traditional aerospace and defense (A&D) operations. This encompasses the manufacturing and testing of military engines and aircraft systems, military training, unmanned aerial vehicles (UAVs), satellite and space technology, as well as missile and defense systems. The leading prime contractor companies are advancing technologies and expanding capabilities in cybersecurity, advanced manufacturing, optics, autonomous systems, and AI. This positions both Arizona and Canada as leaders in innovative and advanced technologies and systems, including missile and defense systems.”
Arizona is ranked fourth in the US in aerospace and defense research, development, businesses, and manufacturing. The state and Canada continue to attract bi-lateral A&D investments due to several factors, which include: a 24% lower cost of doing business compared to other states, location, existing bi-lateral policies, and a strong supply chain, proximity to top A&D prime contractor companies operating in Arizona and Canada, along with military assets, access to a specialized workforce offering tailored educational/training programs from local universities, trade schools, and military bases, a reliable energy grid (ranked 2nd in the US), 300 days of sunshine, and convenient access to trucking, seaports, airports, and rail transportation.
NORAD (*The North American Aerospace Defense Command) is a collaborative effort between the United States and Canada handling aerospace warning, aerospace control, maritime warning, and military defense on the continent. Arizona and Canada play a crucial role in supporting NORAD’s mission through their military assets and aerospace capabilities. The military bases in these locations are essential for training personnel and pilots for air defense missions. The aircraft stationed in Arizona stand ready to assist in continental air defense missions. Moreover, joint training exercises between Arizona, and Canada are essential in ensuring preparedness and defense among U.S. and Canadian forces, fortifying our collective ability to respond to aerospace threats in North America.
As next-generation research and development and technologies such as drones, planes, and ballistics become more advanced, destructive, mobile, and cost-effective production, the A&D market will become more accessible to all allied countries, leading to increased opportunity and competition in global A&D markets. Artificial Intelligence (AI) will catalyze change in North America’s technology and defense industries. The strong connection between Arizona and Canada will continue to dominate global influence as we move further into the new frontier of aerospace and defense.
CABC has established a diplomatic and professional partnership between Arizona and Canada. Its longstanding membership has provided a natural forum for investment and business opportunities, including in the aerospace and defense (A&D) industry. The main goal of this initiative is to maintain, continue, and elevate the subject of aerospace and defense to ensure that the synergy continues to strengthen and grow between Arizona and Canada, as well as the CABC’s members. Arizona and Canada are poised to emerge as global leaders in the aerospace and defense sphere. CABC stands prepared to support through the fostering of relationships and by facilitating discussions to further this pursuit.
*The North American Aerospace Defense Command (NORAD) was a pact made in 1957, at the height of the Cold War. It came under joint command of the Canadian and United States air forces. In 1981, its name was changed to the North American Aerospace Defense Command, but it retained the NORAD acronym.
To see a list of goals and a downloadable version of this initiative, click here.