Canada unveils a defence industrial strategy that aims to create 125,000 jobs

Prime Minister Mark Carney launched Canada's first Defence Industrial Strategy, which aims to boost domestic defence production and create more than 125,000 jobs.

Prime Minister Mark Carney announced Canada's first Defence Industrial Strategy, describing a wide overhaul of procurement and a large increase in defence spending. The policy is presented as a way to strengthen sovereignty, expand domestic industry, and reduce reliance on foreign suppliers. The plan centers on a "build, partner, acquire" approach and includes new institutions to speed procurement and research. Officials also outlined multi‑billion dollar investments and targets tied to NATO commitments. Key elements: - The strategy was launched by Prime Minister Mark Carney and is presented as a response to evolving threats, including cyberattacks, drones, and activities in the Arctic. - Officials said the policy uses a "build, partner, acquire" framework that prioritizes Canadian suppliers where domestic capabilities exist, partners with trusted allies when needed, and limits outright foreign purchases. - New institutions announced include a Defence Investment Agency (DIA) to streamline procurement and a Bureau of Research, Engineering and Advanced Leadership (BOREALIS) to coordinate frontier-technology work. - The government cited financial commitments including an additional $80 billion over five years, plans to invest $180 billion in defence procurement and $290 billion in defence and security infrastructure over the next decade, and a target to meet NATO's two per cent spending level by Spring 2026. - The strategy projects more than 125,000 jobs and significant increases in defence-sector revenues and exports, and it includes a Canadian Defence Industry Resilience Program aimed at securing critical supply chains. Summary: The strategy ties national security more closely to domestic industrial growth and represents a major shift in Canadian defence policy. Next steps include establishing the Defence Investment Agency and BOREALIS and seeking NATO agreement on locating the proposed Defence, Security and Resilience Bank in Canada.