New defence industrial strategy will jump-start investment, sector leaders say

Ottawa's new defence industrial strategy aims to more than triple Canadian defence-industry revenue and create 125,000 jobs over the next decade, and industry leaders say it should spur private investment and help firms reach foreign markets.

Ottawa announced a new defence industrial strategy aimed at strengthening Canada's domestic defence sector and reducing reliance on foreign suppliers. The plan sets targets for growth in revenue, exports and jobs, and highlights priority areas such as marine sensors, autonomous systems, space and munitions. Industry leaders and analysts broadly praised the direction, while some said success will depend on clear timelines and execution. Government officials have outlined near-term steps to identify supported companies and fund research projects. Key details: - The strategy aims to more than triple Canadian defence-industry revenue, boost defence exports by 50 per cent and create 125,000 jobs over the next decade. - A new procurement framework seeks to prioritize domestic building and targets awarding Canadian firms 70 per cent of defence spending by 2035, up from around 40 per cent today. - Ottawa has promised to identify "champions" — companies that could receive export support and directed procurement — by no later than this summer, with a 70 per cent Canadian value threshold cited as a consideration. - The Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS) is to select its first research projects by the third financial quarter of 2026. - Industry voices highlighted potential beneficiaries including autonomous-vehicle makers, space firms and munitions manufacturers; the article mentions Bombardier, CAE, Calian and MDA among companies noted by an analyst. Summary: The strategy is presented as a way to stimulate private investment, scale Canadian production and expand exports while balancing the need to equip the military. Near-term milestones cited by the government include naming "champions" by summer and selecting BOREALIS research projects by Q3 2026. Some industry groups and observers say the plan lacks detailed timelines for when contracts and funding will flow, leaving parts of execution undetermined at this time.