# 2 CAE

2014 Rank: #1

CORPORATE PROFILE

CAE is one of Canada’s highest value-added defence contractors and a perennial high placer in CDR’s Top Ten. This year the world’s leading flight simulation and training company grabs the number two spot, due to its strong 2014 performance, the increasing importance of simulation solutions in a tight budget environment and its acquisition of the NATO Flight Training in Canada (NFTC) business from Bombardier, a move which positions CAE well for future defence sector growth.

Internally, the biggest change at CAE’s Canadian operations last year was the grouping of local activities under the Mike Greenley, its vice-president (and general manager). Greenley, a seasoned veteran, who is already a familiar face to defence industry insiders, will become even more so, as he takes overall responsibility for all of CAE’s business with the Department of National Defence and other government agencies.

Greenley will have a lot on his plate, as CAE’s offerings have expanded considerably in recent years. These now include land, sea and air simulation, training and ISS capabilities, the latter of which here in Canada, support the Royal Canadian Air Force’s CH-147F Chinook helicopters, C-130J Hercules transport aircraft, CF-18 fighter jets and many others.

Over the longer term CAE’s acquisition of the NATO Flight Training Center, could significantly increase its defence footprint.
Adding live pilot training capabilities, which create great synergies with CAE’s simulation products and can be exported on the world stage, could serve the company well, should Canada proceed with next generation fighter purchases. Canada’s Department of National Defence is currently reviewing pilot training methods and is expected to issue a new long-term contract during coming years.

If CAE can win that mandate, the weak loony, which is reducing the price of Canadian offerings in international markets, will make it easier for CAE to export the new training capabilities that it will need to develop to fulfill that contract to other countries.

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