In Mississauga, the message was clear: Canada’s defence ambitions are no longer just about procurement—they are about building a resilient, sovereign industrial base powered by domestic innovation and small business growth.
As the federal government rolls out its new Defence Industrial Strategy, the focus is shifting toward a whole-of-government approach that ties national security directly to economic strength. At a time of increasing global uncertainty, Canada is accelerating efforts to rebuild, rearm, and reinvest in the Canadian Armed Forces—while ensuring that Canadian workers and businesses are central to that mission.
At the heart of this strategy are small and medium-sized enterprises (SMEs), which represent 92 percent of firms and account for 40 percent of jobs in Canada’s defence sector. These companies are not only key contributors to supply chain resilience but also drivers of innovation across the ecosystem. The government projects that the strategy will generate up to 125,000 high-paying jobs, boost defence exports by 50 percent, and increase SME revenues by more than $5.1 billion annually.
Speaking to the strategy’s impact, the Honourable Rechie Valdez emphasized the central role of SMEs:
“As Canada makes historic investments to strengthen our security and defend our sovereignty, we are making sure small and medium-sized businesses are at the centre of this effort. They represent 92% of firms in Canada’s defence sector and account for 40% of its jobs. Through our Defence Industrial Strategy, we are helping these businesses innovate, strengthen Canadian supply chains and grow their revenues by more than $5.1 billion annually. That is how we build a stronger, safer Canada while creating good jobs and opportunity here at home.”
To translate ambition into action, the strategy introduces a series of targeted investments designed to support businesses at every stage of growth—from research and development to commercialization and global market integration. Up to $6 billion will be delivered through the Business Development Bank of Canada’s new Defence Platform, offering financing and advisory services tailored to the sector. At the same time, the National Research Council of Canada is launching a Defence Industry Assist stream to accelerate the development of innovative defence and dual-use technologies.
Regionally, the $357 million Regional Defence Investment Initiative will help companies scale operations and access new markets, reinforcing the strategy’s national reach while supporting local economic ecosystems.
Taken together, these measures signal a deliberate effort to align defence spending with Canada’s industrial strengths. By prioritizing domestic production and reducing reliance on foreign suppliers, the government aims to ensure that the Canadian Armed Forces have reliable access to critical capabilities—when and where they are needed.
The result is a defence strategy that goes beyond capability acquisition. It is a blueprint for economic resilience, industrial growth, and long-term sovereignty—anchored by the businesses and workers that will deliver it.