Woodward Inc., a prominent manufacturer of aviation systems, has announced plans to shut down its Peterborough, Ontario facility by August 2027 and shift production to its Krakow site in Poland. The decision affects approximately 165 employees and marks a significant change for the company, which has been praised for its contributions to Canada’s defence sector.
Closure Announcement
On Tuesday, Woodward informed its workforce in Peterborough about the impending closure, stating that the transition is necessary to align with the company’s long-term operational goals. The facility, which produces specialized electromechanical systems for aviation, was acquired from Safran in July 2025.
In a statement, the company explained, “After reviewing operations, financial goals, and anticipated customer demand, we determined the Peterborough site is not suited to support future growth.” The closure is set to be completed by August 31, 2027, with Woodward expressing a commitment to handling the transition with care for the employees affected.
Mixed Signals from Government Officials
This decision comes on the heels of optimism expressed by federal Defence Minister David McGuinty and Peterborough MP Emma Harrison during their visit to the facility in November 2025. During that visit, McGuinty highlighted the government’s increased spending on defence as a positive factor for the facility’s potential growth. This recent announcement, therefore, stands in stark contrast to the previous outlook shared by government officials.
Transition to Krakow
Woodward plans to execute the relocation of production in phases to ensure a smooth transition to the Krakow facility, which the company asserts has the necessary capacity to manage the work and meet its future operational demands. The Krakow site is also strategically positioned for serving European customers and is in close proximity to key suppliers.
Additionally, engineering support currently based in Peterborough will be transferred to Krakow and Sofia, Bulgaria. Woodward has already communicated with the union representing the affected employees and has assured that it will engage with the union in good faith throughout the process.
The Broader Implications
The relocation of Woodward’s operations underscores a growing trend among manufacturers to optimise their production capabilities in response to market demands and strategic priorities. This shift not only impacts the local workforce in Peterborough but also raises questions regarding the future of manufacturing jobs in Canada amidst an increasingly competitive global landscape.
Why it Matters
The decision by Woodward Inc. to relocate its operations to Poland highlights the challenges facing the Canadian manufacturing sector, particularly in the defence industry. As companies seek to enhance efficiency and reduce costs, the potential loss of jobs in communities like Peterborough is a stark reminder of the shifting economic landscape. The situation calls for a renewed focus on workforce development and strategic investment in local industries to mitigate the impact of such transitions.