Good morning. Growing up in Canada, Bombardier was a name I’d see plastered on snowmobiles, subway cars, and regional planes. In 2020, Éric Martel became CEO and launched a five-year plan to make the Montreal manufacturer focus solely on making private and military jets. It was a winning bet, with Martel reducing debt, selling businesses, and boosting revenue, which could hit $9.5 billion this year.
Then came the trade war. While Bombardier won a reprieve on the 25% tariffs on Canada—which are currently suspended for all goods deemed compliant under the U.S.-Mexico-Canada Agreement (USMCA)—it has caused turbulence. “I have more U.S. content than Canadian content in my planes,” says Martel, pointing to Bombardier’s 2,800 U.S.-based suppliers and defense headquarters in Wichita.
But he doesn’t sound unnerved by what’s going on, saying any “hesitation” in orders lasted about three weeks, almost identical to the pause he saw after Silicon Valley Bank collapsed two years ago. “I'm always a believer that common sense will prevail,” he says. And the pressure on places like Europe to build their defense infrastructure may mean more opportunity.“
The President has been very vocal that everybody needs to share the load.” Martel, who ran Hydro-Quebec prior to leading Bombardier, understands the power of having a big moat. “There's not that many countries in the world that can design and manufacture a plane; many have tried,” says Martel, who’s investing in AI and other technologies to further grow that lead. He hints at new capabilities that could transform how Bombardier designs or certifies its planes which, in his view, are productivity tools for efficient and personalized travel. "I'm not Nike, trying to reach two billion people. I get to know my customers very well."
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This story was originally featured on Fortune.com
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