Canada stands at a pivotal moment. With geopolitical tensions rising and trade relationships shifting, supporting the Canadian defence industrial base is shifting from being an economic preference to being a national strategic imperative. As traditional alliances face new pressures and the demand for greater self-reliance grows, investing in the Canadian defence industrial base becomes a pathway to economic resilience, innovation and sovereignty.  

Buying products, services and solutions from Canadian companies delivers benefits to communities from coast to coast and protects our national interests. 

Economic Impact and Job Creation

Canadian defence companies generate substantial economic value within our borders. The defence industry contributed $9.5 billion to Canada’s GDP in 2022 while sustaining over 81,000 jobs across the country, from advanced manufacturing to cybersecurity to service delivery. Jobs in the defence sector provide innovation benefits to Canada, delivering 2.5 times the share of STEM jobs compared to the broader manufacturing sector.  

Canadian companies invest heavily in research and development. The defence sector alone demonstrates 3.4 times the research and development intensity compared to other industries, driving innovation that creates competitive advantages and export opportunities. The defence sector drives innovation, making Canada more competitive internationally.  

Supply Chain Resilience

Recent global disruptions have highlighted the vulnerability of complex international supply chains. COVID-19 demonstrated how quickly external dependencies can create operational risks for critical programs and services. 

Canadian suppliers offer greater supply chain visibility and control, and greater resilience in the case of a crisis. When challenges arise, Canadian companies can maintain service continuity better than foreign suppliers.  

How Tariffs are Reshaping Canada’s Economic Relationships

Canada and the United States exchanged approximately $900 billion in goods and services in the first three quarters of 2024, demonstrating the deep economic interdependencies between the nations. Canada is the second-largest trading partner for the United States and the top destination for U.S. exports. However, trade disputes are undermining this traditionally stable relationship and creating incentives for both countries to diversify their economic partnerships. 

Canadian public opinion is shifting toward diversifying trade relationships. Recent polling shows that Canadians increasingly view the European Union and traditional partners like the United Kingdom, France and Germany as viable alternatives for future trading relationships. 

This shift is already influencing major procurement decisions. Canada is reportedly reconsidering the procurement of F-35 fighter jets and exploring options with European partners for defence-industrial relationships. 

Defence Industry Implications

The defence sector exemplifies the broader challenges facing Canadian procurement decisions. As Canada has committed to reaching the NATO target of two per cent of GDP for defence spending by March 2026, the country faces critical choices about where to invest tens of billions of dollars in defence capabilities. 

These investment decisions will have generational impacts. Defence programs typically take years to deliver, and sustain innovation, jobs and skills development throughout the lifecycle. The companies selected to deliver these programs will benefit from sustained investment and development opportunities. 

Calian: A Canadian Leader in Mission-Critical Solutions

Calian represents the best of Canadian innovation and capability. Headquartered in Ottawa with over 5,800 employees globally, we have built our reputation by delivering reliable solutions for complex challenges across multiple sectors. 

Our connection to Canada extends beyond our headquarters location. We maintain delivery teams at over 35 Canadian Armed Forces bases and installations across the country, with manufacturing facilities in Vaudreuil-Dorion, Ottawa, Saskatoon and Regina. 

We employ over 2,000 veterans as part of our delivery teams and hire an average of 100 veterans per year. Since 2017, we have hired over 100 military spouses, demonstrating our commitment to supporting military families and leveraging their unique skills and perspectives. 

Comprehensive Solution Portfolio

Calian’s expertise spans major critical infrastructure industries. This diversity allows us to address complex, multi-faceted challenges that require integrated approaches. 

We design, develop and manufacture innovative products and systems for defence, space and health as well as other critical infrastructure segments. Our capabilities range from satellite ground systems, carbon fibre composites, vetronics and radar products, to virtual healthcare platforms, healthcare workflow optimization solutions, staffing, cybersecurity, sovereign data solutions, digital transformation, collective training and individual skills development.  

Innovation and Manufacturing Excellence

Our manufacturing capabilities demonstrate Canadian excellence in advanced technology production. We have designed and delivered key components and systems for Halifax-class frigates, man-portable surveillance and target acquisition radar (MSTAR), and various armoured fighting vehicle components. 

Our space systems expertise positions Canada as a leader in satellite communications and ground station technology. We deliver ground stations ranging from four-metre antennas for low Earth orbit constellation control to 35-metre antennas for deep space exploration missions. 

Training and Simulation Leadership

Canada faces ongoing challenges in military recruitment and training. Our training solutions address these challenges by accelerating competency development and improving training effectiveness. 

We conduct live training as well as immersive learning, including virtual and augmented reality, to create realistic training environments where military personnel can practice critical skills without safety risks. Our synthetic training environments connect constructive, virtual, and live simulation into comprehensive “train-as-you-fight” experiences. 

Long-Term Perspective

Major procurement decisions create impacts that extend far beyond immediate operational requirements. Defence programs, in particular, influence industrial capability, innovation capacity and employment for decades. 

Taking a long-term perspective means considering how today’s procurement decisions will position Canada for future challenges and opportunities. This approach requires balancing immediate needs with strategic objectives for industrial development and economic growth. 

Government Procurement Leadership

Government procurement decisions carry particular weight because of their scale and visibility. When governments choose Canadian suppliers, they demonstrate confidence in domestic capability while creating market opportunities that enable further investment and growth. 

Government procurement can also drive innovation by establishing requirements that push Canadian companies to develop new capabilities and approaches. This market-pull effect accelerates technological development and competitive positioning. 

Building Domestic Capacity

The choice to buy Canadian represents more than an economic preference—it embodies a commitment to building our nation’s capacity, resilience and sovereignty. Companies like Calian demonstrate that Canadian businesses can deliver world-class solutions while creating jobs, driving innovation and strengthening our communities. 

With billions of dollars in defence and infrastructure investment planned for the coming years, Canada has an unprecedented opportunity to build lasting industrial capacity and economic strength. The decisions we make today will determine whether this investment flows abroad or builds capability and prosperity at home. 

Buy Canadian. Build Canadian capability. Shape Canada’s future. 

For further reading on the Buy Canadian topic, explore: