Prime Minister Mark Carney has released Canada’s first defence industrial strategy, with a focus on growing the domestic defence industry and a nod to the importance of collaboration in the North.
The strategy, released on Tuesday, describes “a paradigm shift” toward the federal government working with industry and domestic partners to support national security and defence.
The document sets ambitious targets over the next decade, including awarding 70 percent of federal defence contracts to Canadian companies.
Other goals include increasing the serviceability rates of military fleets, greater spending on defence-related research and development, increasing defence exports by 50 percent, and creating 125,000 new jobs.
“At a time of growing global uncertainty, Canada must strengthen its economic security and protect its sovereignty by investing at home,” Mélanie Joly, minister of industry, stated.
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“By building, innovating, and manufacturing in Canada, we are ensuring our industries benefit directly from defence investments while supporting the modernisation of the Canadian Armed Forces.
“Our government is meeting the moment for Canadians by driving growth, creating jobs across the country, and ensuring Canadians benefit from a stronger, more resilient defence economy.”
Strengthening northern defence
One of the strategy’s five pillars highlights the federal government’s commitment to work with provinces, territories and Indigenous rights holders – particularly in the North and Arctic – in implementing those goals.
“Canada is committed to asserting its sovereignty, strengthening northern defence and surveillance capabilities and deepening cooperation with its allies to deter and, if necessary, defend against emerging threats in the North and High Arctic,” the strategy states.
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The document states that will mean provinces and territories receiving advance notice of major defence infrastructure projects and the federal government making joint investments in education, skilled trades and partnerships between the Canadian Armed Forces and colleges.
The Canadian government said it will also promote Indigenous participation in supply chains, infrastructure development and procurement.
The strategy acknowledges that northern infrastructure is “currently stretched thin and insufficient.”
The federal government pledged to address that gap with dual-purpose infrastructure that can support both the military and communities, such as airports, seaports, medical capacity and alternative power generation. The strategy states Indigenous engagement will be central to building defence-related infrastructure.
“Northern and remote communities are vital to Canada’s defence and sovereignty, particularly in the Arctic, where reliable infrastructure underpins the Canadian Armed Forces’ ability to respond to threats, assert sovereignty, and support local populations,” the strategy states.
“Investments in northern and remote infrastructure are designed not just to support defence operations but to create enduring benefits, reflecting a whole-of-government approach that integrates sovereignty, security and prosperity in Canada’s Arctic and northern regions.”
The strategy points to the Northern Operational Support Hubs program, a 10 to 20-year $2.67-billion initiative that aims to bolster military presence and response in the North. Yellowknife and Inuvik have been designated as hubs.
A recent federal procurement notice revealed that coming defence infrastructure upgrades in Inuvik and Yellowknife may exceed $10 billion over the next 15 years. Exact details on that planned spending have yet to be publicly announced.
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The Town of Inuvik announced earlier this week that the Department of National Defence will host a public meeting in the town in April to discuss planned infrastructure investments with residents.
There is currently an increased military presence in Yellowknife and surrounding areas as part of Operation Nanook, an annual winter operation that takes place in different locations across the North with the aim of exercising sovereignty and improving defence capabilities in the region.
NWT premier welcomes strategy
In a statement on Tuesday afternoon, NWT Premier RJ Simpson said he welcomed the new federal strategy.
“As the defence industrial strategy is implemented, we look forward to working closely with the federal government to ensure it delivers lasting benefits for northerners, including meaningful northern and Indigenous employment, training, and procurement,” Simpson stated.
“Investments in northern infrastructure, housing, energy, and workforce capacity are foundational to Canada’s defence readiness and sovereignty in the Arctic.”
Simpson highlighted that the NWT is a unique environment in which to research, develop and provide training on equipment and technologies for use in Arctic conditions, as well as home to many critical minerals.
The premier said investment in major infrastructure projects such as the Mackenzie Valley Highway and Arctic Economic Security Corridor are “complementary and essential” to federal defence goals.
Other pillars of the new federal defence industrial strategy are:
- renewing Canada’s relationship with industry;
- procuring strategically through a build-partner-buy framework;
- investing to strengthen an innovative domestic defence sector; and
- securing supply chains for key goods.
The strategy is backed by $6.6 billion in funding carved out from a total of $81.8 billion earmarked for defence reinvestment spending in the 2025 federal budget.
