Canada bolsters country's defence industry

Government making targeted regional investments.

The Canadian government is investing in the country's defence sector through its Regional Defence Investment Initiative (RDII).

The three-year RDII has been set up to the tune of $258.2m (CA$357.7m) as part of the foundation of Canada's defence industrial strategy. Targeted regional investments are aimed at expanding capacity across the country.

Minister of National David J. McGuinty commented: "A secure Canada depends on a defence industry that is innovative, resilient, and ready. With these investments, we are strengthening our supply chains, accelerating cutting-edge technologies, and giving Canadian businesses the tools they need to support the CAF (Canadian Armed Forces)."

Focus areas include research and innovation, stockpiles growth, and easier fund access for small- and medium-sized enterprises (SMEs) in the defence sector. Currently, SMEs represent 92% of the industry and 40% of jobs within it.

Places like British Columbia and Atlantic Canada will receive CA$63.1m and CA$38.2m, respectively, in funding over three years under the RDII. Southern Ontario, which is home to over 900 defence-capable organisations, gets a CA$94.7m RIID allocation.

Minister Evan Solomon noted: “Southern Ontario is a powerhouse for defence-related manufacturing and innovation – with an ecosystem of innovative companies ready to deliver advanced technologies and regional expertise needed to strengthen Canada’s defence industrial base and enhance national security.

“Through the Regional Defence Investment Initiative, we are unlocking new opportunities for Canadian businesses to integrate into domestic and international defence supply chains, scale their technologies, and strengthen Canada’s national security.”

Supporting more than 81,000 jobs, the defence industry in Canada contributes nearly CA$10b to the country's gross domestic product.