Turning commitments into capability: the need for industrial strategies
For more than a century, Canada’s aerospace sector has punched above its weight, cementing itself as a cornerstone of national defence and as an economic driver. This was no accident, but rather the result of political leadership, vision, and sustained collaboration between government, industry, and the Canadian Armed Forces. All political leaders and parties recognized aerospace as a strategic industry essential to Canada’s sovereignty and economic prosperity. With parliamentarians back on the Hill and a federal budget coming this fall, it’s time again for that leadership and recognition.
The new federal government has returned to the House of Commons with a priority focus on defence and significant commitments to defence spending: two per cent of GDP by the end of this fiscal year, and five per cent by 2035. This represents a generational opportunity to strengthen Canada’s defence industrial base, secure the country against military threats, and bolster the economy as we adapt to a changing landscape of global trade.
Bold steps will be needed, and we are very encouraged with Prime Minister Mark Carney’s recent announcement of a new Defence Investment Agency (DIA). Industry welcomes this move toward a single point of accountability, especially the strong signal that industry will be engaged early, formally, and in an ongoing manner. We look forward to working with Secretary of State Stephen Fuhr and the new CEO Doug Guzman to strengthen Canada’s industrial base, and accelerate delivery of capabilities to the CAF and create Canadian jobs and innovation. This new procurement structure alone will not deliver capability, jobs, or innovation; success will only come if the effort is guided by a clear defence industrial strategy (DIS) and true collaboration—with industry and the CAF at the table out of the gate, and with ongoing and meaningful engagement.
As Fuhr has said: “Industry doesn’t invest money on ‘maybe.’ They want more surety … and that’s what the DIS is supposed to provide—clarity on where we’re headed.” We agree; the industrial strategy must act as the roadmap to align capabilities with long-term priorities, giving industry a clear view of where to invest and ensuring Canada can develop the capabilities to build our defence industrial base, safeguard citizens, support our allies in response to new and emerging threats, and, in the process, grow the Canadian economy. This will necessitate a comprehensive assessment of the country’s key industrial capabilities—taking stock of our domestic strengths, gaps, and opportunities—while setting clear goals and facilitating innovation, exports, and employment.
The newly announced DIA will need to prioritize these key industrial capabilities identified through the DIS—capabilities in aerospace; space; in-service support; drones; and maintenance, repair, and overhaul, to name a few—and, when possible, serve as a first buyer of Canadian solutions. Every investment made towards defence should drive strategic outcomes that both build Canada’s defence industrial base and deliver capability our Armed Forces urgently need.
Then-NATO secretary general Jens Stoltenberg said it well during the 2023 NATO-Industry Forum in Stockholm, “Without industry, there is no defence.” Indeed, the government cannot deliver on its NATO commitments without the support of our industry—aerospace companies of all sizes operating in all regions of Canada. Beyond supporting the government in delivering new capabilities, the industry is an essential partner to sustain, upgrade, and repair the technology and systems Canada’s Armed Forces rely on while sustaining and creating jobs in every region of the country.
That is why the defence industrial strategy must be complemented by a broader aerospace industrial strategy. A strong civil sector enables a strong defence sector and vice versa. By connecting defence and civil aviation priorities, Canada can solidify its global competitiveness, pursue innovation for the longer term, and create high-value jobs across the country.
Canada’s aerospace industry already generates $34-billion in GDP, and supports 225,000 Canadian jobs. While defence drives a significant portion of revenue, a world-class civil sector is essential to commercialize dual-use technologies and unlock the industry’s full potential as Canada looks to expand to new markets while also building on our existing relationship with the United States.
Canada’s aerospace and defence companies are ready to step up. To partner with government and the CAF in new ways. To act fast, to take risks, and to build a defence industrial base that deters threats to Canada’s sovereignty and security by sending a message around the world to our adversaries that the country has the capability and capacity to defend itself.
We look forward to imminent developments on the industrial strategy, working together on the DIA, and the tabling of the federal budget Nov. 4. In the meantime, our active engagement on these issues will continue and these topics will be front and centre as we convene the Canadian Aerospace Summit and Transport Canada Delegates Workshop on Oct. 28–29 at the Rogers Centre Ottawa.
This OpEd was originally published in The Hill Times on Wednesday, October 8, 2025
