Ottawa plans to double defence exports and create 125,000 jobs over the next decade

The federal government’s new defence industrial strategy sets targets to double Canada’s defence exports and create 125,000 jobs in the next ten years, and to award 70 percent of defence acquisitions to Canadian firms.

Ottawa has released a defence industrial strategy that aims to prioritize Canadian suppliers and reduce procurement barriers. The plan frames higher defence spending as part of a broader effort to strengthen supply chains and domestic capacity after recent global disruptions. Over the next ten years the government says it will double defence exports and create 125,000 new jobs while increasing the share of acquisitions awarded to Canadian firms. Ministers cited events such as Russia’s invasion of Ukraine and the COVID‑19 pandemic as influences on how Canada now views supply‑chain vulnerability. Key points: - The government plans to double Canada’s defence exports and create 125,000 jobs over the next ten years. - The strategy sets a target of awarding 70 percent of defence acquisitions to Canadian firms and growing small‑ and medium‑sized business defence revenues by more than $5.1 billion annually. - The 2025 fall budget set aside $81.8 billion for defence over five years, including $6.6 billion allocated to the Defence Industrial Strategy. - By 2035 the government intends to raise defence spending to 5 percent of GDP; official estimates tied to the strategy include $180 billion for procurement, $290 billion for defence‑related infrastructure, and $125 billion in downstream economic activity. - The strategy references global events and speeches on world order as context for its goals, and its planned release was delayed recently for unrelated reasons. Summary: The strategy signals a shift toward buying more from Canadian firms and selecting industry champions to capture a larger share of defence spending, with measurable targets for exports, jobs, and procurement share. Undetermined at this time.