Aéro Montréal Launches MACH Initiative - A program to optimize Québec's
aerospace supply chain

FARNBOROUGH, United Kingdom, July 20 /CNW Telbec/ - Aéro Montréal, the Québec Aerospace Cluster, today announced during the Farnborough International Airshow the launch of the MACH initiative designed to optimize the performance of Québec's aerospace supply chain and increase its global competitiveness.

"Québec's aerospace industry has been mobilizing to stay competitive and maintain its global position, and has decided to quickly address the supply chain challenges," said Gilles Labbé, Chairman of the Board of Aéro Montréal and President and Chief Executive Officer of Héroux-Devtek.

"Stemming from the work by Aéro Montréal's Supply Chain Working Group, the MACH initiative is the result of joint discussions among members of the cluster and intends to be a unifying process to support the long-term strategic growth of the sector," says Philippe Hoste, Chairman of Aéro Montréal's Supply Chain Working Group and Chief Executive Officer of Sonaca Montréal.

Meeting supply chain challenges and creating integrators and value-added suppliers

The supply landscape in the aerospace industry is undergoing a rapid transformation. In a context of market globalization and increased competition, major OEMs are reducing their number of suppliers and working with companies who are able to offer integrated solutions and to manage multiple sub-contractors.

This trend is leading to the development of partnerships among OEMs and suppliers, from co-design to the management of technological, operational and financial risks. OEMs are increasingly dependent on the performance and seamlessness of these collaborations to stand out among their customers. They need to equip themselves with a flexible and integrated supply chain in which each link adds value.

Consequently, to position themselves on future aircraft programs, Québec companies must move towards more competitive models. They must improve their business practices, become more efficient, innovate both in terms of technology and management, and align themselves with the needs of global OEMs and large integrators.

"Effective management of the supply chain is becoming a key competitive driver for our companies and the entire Québec aerospace sector," said Clément Gignac, Minister of Economic Development, Innovation and Export Trade. "Quebec is one of the most dynamic and high performance markets in the global aerospace industry. Our government supports this initiative, which will help Québec and its companies remain among the global leaders. This is a challenge that we must all tackle together."

MACH - Achieving excellence in the supply chain

Transforming the supply chain requires the development and continuous improvement of all stakeholders. The MACH initiative aims to strengthen the supply chain structure and companies involved in it by creating special collaboration links among customers and suppliers. It will also promote the implementation of strategies and projects which will help fill in existing integration gaps of the Québec aerospace supply chain. By doing so, it aspires to help develop a world-class supply chain.

Centered on a program of developing supplier competitiveness, including a performance label, all the measures deployed as part of the MACH initiative will allow suppliers to evaluate their situation, identify opportunities for improvement, and take appropriate action. Mechanisms to develop and welcome world-class system integrators will be implemented, in collaboration with our various partners, to strengthen the weak links in Québec's aerospace supply chain in areas such as aero structures, avionics, cabin interiors and hydraulic systems.

MACH will begin with a pilot project that will involve about 20 Québec suppliers who will benefit from services offered by the initiative as well as the expertise and guidance of more than six world-class manufacturers.

The initiative will progressively make available to participating companies services, tools and methodologies to evaluate and improve their performance and market position and further develop business opportunities. While the specific implementation methods remain to be finalized, the program will include services such as:

    - An assessment of organizational performance
    - Support to carry out a continuous improvement plan based on action
    - Tailored training programs
    - Mechanisms for performance measurement and benchmarking at the national
      and international levels
    - Tools for dissemination of information and strategic intelligence
    - A visibility plan that will promote companies both nationally and
      internationally by showing how they have improved their performance.

"The development of initiatives focused on the supply chain, such as MACH, is part of a global trend being seen in the industrial orientation programs of developed countries such as the United Kingdom, France, Germany and the United States," said Suzanne M. Benoît, CEO of Aéro Montréal.

"As a mentor of the MACH initiative, Bombardier Aerospace is proud to support a program that will specifically address the challenges of the supply chain and help strengthen the competitiveness of Québec's aerospace industry," added Janice Davis, Vice President & Chief Procurement Officer of Bombardier Aerospace.

About Aéro Montréal

Aéro Montréal, Québec's Aerospace Cluster, is a think tank that brings together all the major decision makers in the region's aerospace sector, including companies, educational and research institutions, associations and unions.

Aéro Montréal's mission is to mobilize industry players around common goals and focused actions to increase cohesion and optimize competitiveness. By fostering the growth and expansion of Greater Montréal's aerospace cluster, it intends to make this industry an increasingly important source of wealth creation for the Montréal region, Québec and Canada.

SOURCE Aéro Montréal

For further information: For further information: Amélie Hudon, Senior Communications Advisor, Aéro Montréal, Tel.: 514 987-9334, Cell: 514 262-8417, amelie.hudon@aeromontreal.ca

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