Possible cut in U.S. F-35 orders ‘key’ concern for aerospace industry

OTTAWA – There’s worry in the federal bureaucracy about whether Canadian aerospace companies will get all the business expected from the oft-maligned F-35 program.

That’s according to an internal federal assessment.

The concern is that the project will face substantial cuts in the U.S., which would affect suppliers world-wide, including 72 Canadian companies that have US$438 million in contracts to date.

A newly released analysis from last summer for Industry Minister Christian Paradis calls the potential cuts a “key risk” for Canadian industrial participation.

The U.S. is facing what may be massive defence cuts if lawmakers in Washington cannot agree on deficit-fighting plans, and the long overdue F-35 program is a huge target.

The Harper government initially estimated that aerospace companies in this country could reap as much as $12 billion in contracts over the life of the aircraft, but revised it downward to between $9.3 billion and $9.7 billion.