Our statement on the government's Defense Industrial Strategy
The Coalition for a Better Future welcomes the federal government's defence industrial strategy as a step towards building Canada's industrial capacity. The goals are ambitious: tripling defence-industry revenue, creating 125,000 jobs, boosting exports by 50 per cent, and increasing the share of defence contracts awarded to Canadian firms from 43 to 70 per cent by 2035. Industry leaders across sectors, from robotics and satellite technology to advanced manufacturing, have responded positively, recognizing that domestic procurement is vital to competitive industries.
This support is broad and cuts across the Canadian economy and Coalition member organizations. Canadian Manufacturers & Exporters has been clear that Canadian manufacturers have the “talent, technology, and capacity to deliver” on the potential of this strategy, while emphasizing that success will depend on close coordination between government, contractors, and domestic suppliers — especially small and mid-sized firms.
The Canadian Chamber of Commerce has called the scale of new funding “unprecedented” and noted that “the true measure of success will be how these dollars translate into real operational readiness, modernized equipment, and a stronger Canadian Armed Forces.”
U15 Canada, representing Canada's leading research universities, says that universities can help drive innovation and secure sovereign capabilities — noting that in an era of geopolitical risk and technological competition, research institutions have a critical role to play.
The Coalition has long asserted that Canada's economic challenges are structural, not cyclical — and that closing the productivity and investment gap requires deliberate, well-designed policy that prioritizes innovation and job creation across the country.
The "Build-Partner-Buy" framework aims to support this by fostering domestic production while reducing reliance on U.S. military hardware. While the intent is understandable, given the current geopolitical landscape, we must ensure that Canadian suppliers can deliver quality and timely solutions. Where Canadian suppliers can deliver, the policy has the potential to create jobs, anchor supply chains, and generate export opportunities. But if we rely on domestic suppliers in areas where they cannot compete effectively, we risk higher costs, inferior equipment, and missed opportunities.
The true measure of this strategy should, first and foremost, be focused on measuring the capacity of the CAF to defend our sovereign territory. In equal measure, the strategy’s success will be demonstrated by its impact on Canada's competitiveness and productivity, rather than procurement statistics alone. We urge the government to be discerning in identifying firms and awarding contracts, focusing on real industrial capacity rather than political pressures. Canada is capable of building world-class defence industries. A commitment across governments and the private sector to this strategy, combined with the capital and policy framework to back it up, offers an opportunity to do so. The Coalition will monitor progress and continue to hold the government accountable for results that translate into productivity, job creation, and long-term competitiveness.
About the Coalition for a Better Future
The Coalition represents a diverse and growing community of like-minded organizations in the private and not-for-profit sectors. We are unified in our belief that economic growth is necessary for job creation, rising incomes, a cleaner environment, and a better quality of life.
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