Canada has introduced a new defense industrial strategy outlining ambitious goals for the country to achieve in the coming decade. The plan aims to increase the procurement and maintenance of military equipment within Canada, with a target of awarding 70% of federal defense contracts to Canadian companies over the next ten years.
Additionally, the strategy seeks to improve the serviceability rates of Canadian military equipment to 75% for navy ships, 80% for army vehicles, and 85% for air force planes. The initiative addresses the challenges posed by outdated equipment and a shortage of spare parts, as evidenced by data showing significant percentages of navy, air force, and army vehicles being labeled as “not serviceable.”
Furthermore, the strategy emphasizes enhanced investment in defense-related research and development and aims to boost Canada’s defense exports by 50%, with the goal of creating 125,000 new jobs nationwide by 2035.
The plan, backed by $6.6 billion from the Liberal government’s broader defense reinvestment scheme, focuses on reducing reliance on foreign suppliers, particularly the United States. Prime Minister Mark Carney has stressed the importance of prioritizing domestic defense manufacturing, stating that Canada cannot afford to outsource its national defense.
The strategy advocates for a “Build-Partner-Buy” procurement framework to strengthen Canada’s defense capabilities and underscores the need to build military equipment domestically, especially in areas where Canada possesses significant expertise. The document highlights the importance of certain sovereign capabilities for national security reasons.
In addition to fostering partnerships with Canadian companies, the strategy calls for closer collaboration with trusted allies in Europe, the United Kingdom, and the Indo-Pacific region. The release of the Canadian defense industrial strategy coincided with U.S. President Donald Trump’s America First Arms Transfer Strategy, which aims to bolster the country’s arms manufacturing sector.
Overall, the strategy sets out a comprehensive roadmap for enhancing Canada’s defense capabilities, promoting domestic manufacturing, and securing critical intellectual property and capacities to support the country’s geopolitical interests.
