By Dr. Ann Griffiths, 23 February 2026
By now you will have heard that the federal government has released its Defence Industrial Strategy (DIS). It promises many things. It stresses that the defence industry plays a key role in both security and the economy. According to the strategy, in the next 10 years, it will:
- Build world-leading Canadian firms in key sovereign capability areas;
- Raise maritime fleet serviceability to 75%, land fleets to 80% and aerospace fleets to 85% to meet training and operational readiness requirements;
- Increase the share of defence acquisitions awarded to Canadian firms to 70%;
- Accelerate procurement of successful Canadian defence R&D innovations;
- Boost government investment in defence-related research and development by 85%;
- Increase total Canadian defence industry revenues by more than 240%;
- Grow defence revenues for Canadian small and medium-sized businesses by more than $5.1 billion annually;
- Increase Canada’s defence exports by 50%;
- Create 125,000 quality new jobs across the Canadian economy.
The strategy to strengthen the defence industrial base “is built on five integrated pillars, each designed to ensure that Canada can equip, sustain, and modernize our military while fostering a Canadian defence industry able to meet 21st century challenges.” The five pillars are as follows.
1. Renewing Canada’s Relationship with Industry
“Canadian defence companies must be partners in building and sustaining our armed forces. This means building a more strategic relationship with Canadian industry.” This pillar includes discussion of helping to provide ‘long-term demand signals’; multiple mechanisms to engage with government; more rapid security clearance and/or accreditation of personnel/facilities; and ‘concierge’ assistance to navigate government processes/paperwork.
2. Procuring Strategically Through a New “Build–Partner–Buy” Framework
“With these new tools the Government will prioritize domestic production where feasible and partner with trusted allies where necessary, dramatically speeding up defence acquisitions in the process.” This pillar has received much attention. The government stresses that Canada will build defence material that is strategically necessary and if that is not possible, it will partner with allies to get the capabilities, and as a last resort, will buy the capabilities from trusted friends and partners.
3. Investing Purposefully to Strengthen an Innovative Canadian Defence Sector
“Beyond procurement, long-term defence resilience requires investment in innovation and workforce development. Going forward, we will support R&D, protect intellectual property, nurture small and mid-sized firms, invest in skills and training, and promote exports to create a defence sector that is agile and globally competitive.” Key to the research strategy is the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS) which “will play a central role in coordinating and accelerating defence research and innovation, particularly in frontier technologies such as AI, quantum, and cybersecurity, to strengthen Canada’s sovereign defence capabilities.” In this pillar is a promise that Canada will pursue opportunities to increase defence exports.
4. Securing Supply Chains for Key Inputs and Goods
“Defence depends on complex supply chains. From critical minerals to specialized components, ensuring reliable access to these materials is essential for both operational readiness and national security. By strengthening domestic production, stockpiling resources, and coordinating with trusted allies, Canada can mitigate the risks of global disruptions and maintain consistent capability for the Canadian Armed Forces.” This pillar discusses providing support to industries such as steel, aluminum and critical minerals that can contribute to defence production.
5. Working with Domestic Partners, including in Canada’s North and Arctic
“Working closely with the provinces and territories, Indigenous communities, and other key stakeholders will ensure that defence infrastructure and industrial growth are inclusive, sustainable, and geographically balanced. Canada’s North and the Arctic will be a particular focus, as new threats emerge in part due to a changing climate.”
The DIS will unfold under the leadership of the Defence Investment Agency (DIA) which “is designed to accelerate the timeline of defence procurements, leverage defence procurements to strengthen Canada’s defence industrial base, and attract investment into Canada’s defence industry contributing to growing Canada’s economy.”
As I said, there are many big promises in the strategy, and some stretch the bounds of credulity. Can (should?) the defence industry be a key player in our economy? Where are these 125,000 workers going to come from? How are we going to increase our defence exports by 50% in the next decade -- to whom are we going to sell all the stuff we’ve made? Increase total Canadian defence industry revenues by more than 240%? More than 240%? I would feel much better about this strategy if it left out the numbers.
Could we perhaps work with other middle powers – as suggested by the Prime Minister at Davos – and focus on a few things in which we have expertise or advantage? I don’t know about you, but I miss the days when governments under-promised and over-delivered (if there ever were days like that). The DIS seems to over-promise -- we’ll have to wait and see if it under-delivers.
Read the DIS at https://www.canada.ca/en/department-national-defence/corporate/reports-publications/industrial-strategy/security-sovereignty-prosperity.html
