Last week, Canada’s defence industry was on full display at CANSEC, the Canadian Association of Defence and Security Industries trade show. CANSEC is Canada’s largest defence event and brings together government officials, foreign dignitaries, military leaders, and the private sector into one space.
This year’s event was different. Not only in crowd size, with around 10,000 extra people squeezing in, but Ottawa’s top brass was out in force to sell Canada’s defence sector and to sell the defence sector on Canada. The message was clear that Canada is preparing to spend more on defence, move faster than it has in the past, and use that spending to build more capacity at home.
That is a major shift for a country that has often treated defence as something to manage, delay, or outsource where possible. For years, Canada has relied heavily on allies, especially the United States, to provide the wider security umbrella that allowed this country to spend less and move slower. That world is becoming harder to count on.
The war in Ukraine, growing tension with China, instability in the Middle East, cyberattacks, Arctic security, and an unpredictable United States have all changed the conversation. Canada can still work with allies, and it should. But it can no longer assume that other countries will always have the equipment, supply chains, or political will to move when Canada needs them to.
That is why defence is now being talked about as more than a military issue. It is becoming an economic issue. If Canada wants to defend itself, it needs more than soldiers, ships, planes, and equipment. It also needs companies that can build, repair, supply, and improve those systems here at home.
Prime Minister Mark Carney came into office promising to build a stronger and more resilient Canadian economy. That promise is now being tested in real time. The latest economic numbers have not been kind; in fact, according to Statistics Canada, the country is in a technical recession, and many Canadians are already feeling the strain through higher costs, weak growth, and uncertainty about where the country is headed.
Defence spending will not fix all of that. It will not lower grocery bills or solve Canada’s productivity problem overnight. But if done properly, it can help build a more serious industrial base. That means using public dollars to support Canadian jobs, Canadian factories, Canadian research, and Canadian companies that can compete beyond our borders.
The prime minister’s announcement at CANSEC pointed in that direction. The federal government announced changes tied to defence procurement and industrial capacity, including reforms to the Industrial and Technological Benefits Policy, a new Strategic Partnership Framework, a Defence Concierge Service, and a Defence Advisory Forum.
Those names sound bureaucratic, because they are. But behind the Ottawa language is a practical question about when Canada spends billions on defence, how much of that money will actually build capacity in Canada? That is the real question to ask.
This also connects to the renewal of CUSMA. The first mandatory joint review of CUSMA is set to kick off less than a month from now, and while it is not expected to be a full renegotiation, it will still create pressure for Canada. Trade, defence, supply chains, digital services, and economic security are now part of the same conversation.
That creates both risk and opportunity. Canada will need to be clear about where it wants to rely on allies, where it wants to partner, and where it needs to build more capability at home. Defence spending is one of the clearest places to start because the money is already coming and the need is obvious.
Last week’s CANSEC showed that Canada has companies ready to be part of this shift. The attention from government is there, and so is the pressure from the world around us.
The question now is whether Ottawa can turn announcements into action and use defence spending to help build an economy that is better suited for the new realities of the world. It is a big gamble, but will it pay off? Only time will tell.
Daniel Perry is the Director of Federal Affairs at the Council of Canadian Innovators, leading national advocacy and engagement efforts. With experience in consulting and roles at the Senate of Canada, Queen’s Park, and the Canadian Criminal Justice Association, Daniel has helped political leaders and clients across various sectors achieve their public policy goals. A frequent media contributor and seasoned campaigner, Daniel holds a Master of Political Management from Carleton University.
