New defence strategy aims to rebuild Canada’s military industry

CALGARY — A panel of industry experts at DEFSEC West — the Defence and Security Conference of Western Canada — outlined the federal government’s plan to overhaul Canada’s defence industry in Calgary on Wednesday.The conference, which is a major annual event focused on military, defence and security issues, saw officials from multiple departments detail the country’s newly released Defence Industrial Strategy (DIS), describing it as a “whole-of-government” effort aimed at strengthening domestic production, accelerating procurement, and boosting exports in the defence industry.The DIS marks Canada’s first comprehensive framework for its defence industrial base, following allied countries that have already adopted similar strategies.“This really is a collaboration that has been a long time coming,” said Lindsay Smith, director of space, marine and defence at Innovation, Science and Economic Development Canada (ISED), adding that defence industry stakeholders have called for more predictable long-term investment from Ottawa for years.Smith said this new strategy is designed to address those concerns by positioning the federal government as a more active buyer of Canadian-made defence technologies while also increasing funding in the sector.At the centre of the plan is the newly created Defence Investment Agency (DIA), which was established to streamline procurement more quickly.Diogo Brandao, senior director of policy at the DIA, said the agency will reduce red tape, centralize decision-making, and could eventually evolve into a standalone body responsible for defence procurement.“For us, the Defence Industrial Strategy at the agency truly is a North Star,” he said.“It's meant to guide how we think about sovereign industrial capabilities in building out procurement strategies on major procurements, how we invest, how we work with industry, with National Defence, and the Canadian Armed Forces (CAF).”.Defence minister inflated military spending numbers, still falls short of NATO promise.He added that Canada must procure materials in ways that deliver military capabilities “faster and more efficiently,” which strengthens “our national industrial base and drives economic growth.”“That’s at the heart of the mandate of the agency,” Brandao said.The agency has already grown to roughly 100 staff members and is managing more than 30 major procurement files — the majority of which are projects valued at over $100 million.The DIS also includes a major push to expand exports, with Global Affairs Canada targeting a 50% increase in defence exports to allied nations over the next decade.“We have an opportunity here for Canada… to collaborate in delivering in areas where we have industrial advantage and military strategic needs, and then also compete in the international market,” Wendy Hadwen, assistant deputy minister (policy-industry) at the Department of National Defence, said.Beyond procurement and exports, the DIS identifies ten “sovereign capability” areas — spanning 32 sectors — where Canada aims to build or strengthen domestic capacity.Hadwen stressed the plan will require coordination across all levels of government, as well as deeper partnerships with industry and research institutions.She described the strategy as a “matchmaking” effort to better connect government needs with private-sector capabilities, adding that provinces, municipalities and universities are increasingly mobilizing to support the defence sector.“I have met a surprising number of municipalities who are organizing themselves to support the defence of Canada,” Hadwen said.She added that a key challenge going forward will be balancing immediate military needs with long-term goals of building domestic production capacity, and acknowledged that not all capabilities can be developed within Canada, stating that there will be a continued reliance on a mix of domestic production and foreign procurement.Ultimately, Hadwen said, the strategy is intended to ensure the CAF are better equipped while also driving economic growth and job creation.“This is the start line,” Hadwen stated.“It’s about delivering capabilities faster, strengthening our industrial base, and positioning Canada to compete globally.”

New defence strategy aims to rebuild Canada’s military industry

Related Stories