Why Canadian Defence Manufacturing Matters Now More Than Ever
Political tensions and trade disputes are reshaping Canada’s strategic landscape. With billions in defence spending on the horizon and growing uncertainty in international partnerships, Canada faces a critical choice: invest domestically or continue relying on increasingly volatile foreign suppliers.
When Canada invests billions in defence capabilities, the question isn’t just what to buy—it’s where those investments will create lasting value for Canadian communities, workers and national security.
Economic and Security Pressures Mount
Trade tensions with the United States are creating unprecedented uncertainty. With approximately C$3.6 billion in trade crossing the Canada-U.S. border daily in 2023, and over C$1 trillion in annual bilateral trade, any disruption to this relationship has huge implications.
These tensions are already influencing major procurement decisions. Canada is reportedly reconsidering the F-35 fighter jet purchase amid strained relations with Washington. Meanwhile, recent polling shows Canadians increasingly view European partners as more reliable future trading relationships.
The “Buy Canadian” Advantage
Canadian defence manufacturing offers compelling advantages during uncertain times.
Supply Chain Resilience: The COVID-19 pandemic exposed the fragility of global supply chains. Canadian suppliers provide greater visibility and reliability than potentially hostile foreign partners.
Economic Multiplier Effects: In 2022, Canada’s defence industry contributed $9.5 billion to GDP and sustained over 81,000 jobs. The sector delivers 2.5 times the share of STEM jobs compared to broader manufacturing and 3.4 times the research and development intensity.
Generational Impact: Defence programs often span decades, creating sustained innovation ecosystems. A surge in domestic investment can translate into export growth and long-term competitive advantages.
Canada’s Defence Spending Surge Creates Historic Opportunity
Canada is committed to reaching the NATO defence spending target. This requires acceleration in capital programs outlined in Strong, Secure, Engaged and Our North, Strong and Free.
Key investment areas include:
- Fighter aircraft and airborne early warning systems
- Maritime patrol aircraft and patrol submarines
- New destroyers and armoured fighting vehicles
- Ground-based air defence systems
- NORAD and continental defence modernization
The Scale of Investment
These programs represent tens of billions in defence spending—a generational opportunity to build domestic capability while meeting operational requirements. The question isn’t whether Canada will spend this money, but where those investments will create lasting value.
How Canadian Defence Manufacturing Delivers Value
Calian is already delivering cutting-edge solutions. From advanced satellite ground stations managing deep space missions to virtual reality training systems preparing military personnel, domestic providers like Calian offer world-class capabilities.
The space sector alone directly sustains over 12,600 jobs across Canada, with two-thirds being STEM positions. Research and development investment of $593 million delivers a 3:1 return on investment for Canadian companies.
Proven Track Record
Calian has successfully delivered complex systems for major programs:
- Halifax-class frigate components
- Man-portable surveillance and target acquisition radar (MSTAR)
- Power control modules and vehicle control units for armoured vehicles
- Composite boat hulls offering superior performance and longevity
Strategic Sovereignty
Beyond traditional defence manufacturing, Canadian companies provide critical sovereign capabilities in cybersecurity, data solutions and space systems. These capabilities ensure Canada maintains control over sensitive information and strategic technologies.
The Path Forward
Canadian defence industry partners are seeing growing recognition of the strategic importance of domestic manufacturing. This engagement needs to translate quickly into concrete procurement decisions to maximize benefits for both the Canadian Armed Forces and the defence industrial base.
The “buy Canadian” approach doesn’t mean compromising on capability or timeline. Where Canada lacks ready-to-operate solutions, partnerships with reliable allies should prioritize time-to-delivery and interoperability while building domestic capacity.
A Strategic Choice for Canada’s Future
Canada stands at a strategic inflection point. The defence investments made today will shape national security, economic prosperity and industrial capacity for the next generation.
With geopolitical volatility increasing and traditional partnerships under strain, building sovereign capability has never been more critical. Canadian defence manufacturing offers operational advantages, economic benefits and supply chain security that foreign alternatives cannot match.
The choice is clear: Canada can either send billions abroad to potentially unreliable partners or invest in building domestic capability that delivers lasting national benefits. In this moment of unprecedented defence spending, choosing Canadian solutions isn’t just patriotic—it’s strategically essential.
