Montreal (Rajeev Sharma): Prime Minister Mark Carney on Tuesday unveiled Canada’s first-ever defence industrial strategy, aimed at strengthening domestic manufacturing and reducing reliance on foreign suppliers to equip the Canadian Armed Forces.
The announcement was made during a visit to simulation technology firm CAE in Montreal, where industry leaders welcomed the move as a major step toward building a stronger national defence sector.
CAE president and CEO Matthew Bromberg said the strategy signals a clear commitment to developing a robust defence industrial base in Canada. About half of the company’s contracts are now tied to military work, with 90 per cent of its flight simulators exported globally.
Industry groups say the policy could deliver significant economic benefits. The Canadian Association of Defence and Security Industries (CADSI) estimates the plan could create up to 125,000 new jobs, potentially expanding the sector to more than double its current size.
However, industry leaders cautioned that the success of the strategy will depend on faster and more efficient procurement. CADSI president Christyn Cianfarani described the current procurement system as the “Achilles heel” and warned that delays could undermine the initiative if reforms are not implemented.
At the core of the strategy is the creation of a new Defence Investment Agency (DIA), which the government says will streamline contracting, cut red tape and accelerate domestic production.
Quebec Manufacturers and Exporters (MEQ) welcomed the initiative but called for clearer guidelines on what qualifies as a Canadian manufacturer, noting that many defence contractors operating in the country are subsidiaries of foreign firms that support thousands of local jobs.
Founded nearly 80 years ago, CAE said it has the capacity to expand production to meet both Canada’s military needs and growing global demand.
