ByThe Canadian Press
Published: February 17, 2026
Prime Minister Mark Carney makes an announcement as he visits CAE Inc., in Montreal, on Tuesday, Feb. 17, 2026. THE CANADIAN PRESS/Christinne Muschi
Canada has failed both to adequately fund its military and to build up the domestic defence industry, Prime Minister Mark Carney said Tuesday as he rolled out an ambitious new plan to grow the defence sector.
Canada’s first-ever defence industrial strategy, unveiled Tuesday by Carney in Montreal, sets new guidance on procurement and funding decisions, looks to hike Canadian firms’ share of federal defence contracts to 70 per cent and vows to add 125,000 defence sector jobs over the next decade.
“Over the last few decades, Canada has neither spent enough on defence nor invested enough in our defence industries and we have relied too heavily on our geography and other countries to protect us,” Carney said. “This has created vulnerabilities we can no longer afford and dependencies we can no longer sustain.”
The $6.6-billion plan, which bills itself as a “paradigm shift” for how government engages with industry, will prioritize building military gear domestically — especially to cover “sovereign capabilities” critical to national defence or Canada’s commitments to allies.
If Ottawa cannot build at home, it will partner with allies or buy directly from them under “strong conditions that spur reinvestment into the Canadian economy,” the strategy document says.
The strategy warns of a need to “mitigate” the risk of Canada getting locked into advanced military systems owned and controlled by foreign governments that can exert control over their intellectual property.
Christyn Cianfarani, president of the Canadian Association of Defence and Security Industries, called the introduction of the defence industrial strategy a “historic turning point.”
“For the first time, we can see a clear, accountable vision for the defence sector” that comes with specific targets to grow Canada’s sovereign industrial capabilities, she said.
The document states that Ottawa will select certain Canadian defence firms as “key strategic partners” and enter into formal partnerships with them to build “world-leading champions that can meet Canada’s needs.”
The strategy seeks to increase Canada’s defence exports by 50 per cent within a decade — just as the European Union looks to massively scale up defence spending in response to Russia’s war on Ukraine.
“We will be very deliberate and open in terms of defence and security partnerships we sign with allies throughout the world and what opportunities that opens up, and be clear about what the guardrails are around … the types of exports we would envision with those countries,” Carney said.
“We will be broadening our partnerships. We’re deepening with our closest allies.”
The document also promises a suite of policy shifts to come — such as planned legislative changes to the new Defence Investment Agency to make it an independent office.
The agency is currently housed within Public Service and Procurement with a staff compliment of just 85 people, which is set to expand to roughly 400.
But the strategy cautions that “even with more efficient defence procurement, Canadian companies will still need to engage with multiple agencies.”
Conservative Leader Pierre Poilievre dismissed the document as a “salad bowl of buzzwords” and called on Ottawa to instead cut bureaucracy and streamline its purchasing decisions.
The government pledges in the document to advance a package of reforms early this year to its industrial technological benefits policy, which sets out how procurement projects get graded in terms of how they contribute to the domestic economy.
It promises a new strategy on expanding production of critical minerals tied to defence and the creation of a new program to support domestic production of ammunition and explosives.
The strategy said by 2029, Ottawa will stand up a new plant to produce nitrocellulose, which is a propellant used in munitions.
Also on Tuesday, the government set new serviceability targets for its fleets — the percentage of military vehicles ready to be deployed.
The government set deployment-ready targets of 75 per cent for the maritime fleet, 80 per cent for land vehicles and 85 per cent for aerospace — targets that national defence officials called ambitious but achievable. According to publicly released figures from National Defence, the last reported serviceability levels were 59.6 per cent for the maritime fleet, 51 per cent for land vehicles and 42.3 per cent for aerospace.
The department cited personnel shortages, past underfunding, aging vehicles and other supply chain issues as factors affecting the availability of military platforms.
This report by The Canadian Press was first published Feb. 17, 2026.
Canada has failed both to adequately fund its military and to build up the domestic defence industry, Prime Minister Mark Carney said Tuesday as he rolled out an ambitious new plan to grow the defence sector.
Canada’s first-ever defence industrial strategy, unveiled Tuesday by Carney in Montreal, sets new guidance on procurement and funding decisions, looks to hike Canadian firms’ share of federal defence contracts to 70 per cent and vows to add 125,000 defence sector jobs over the next decade.
“Over the last few decades, Canada has neither spent enough on defence nor invested enough in our defence industries and we have relied too heavily on our geography and other countries to protect us,” Carney said. “This has created vulnerabilities we can no longer afford and dependencies we can no longer sustain.”
The $6.6-billion plan, which bills itself as a “paradigm shift” for how government engages with industry, will prioritize building military gear domestically — especially to cover “sovereign capabilities” critical to national defence or Canada’s commitments to allies.
If Ottawa cannot build at home, it will partner with allies or buy directly from them under “strong conditions that spur reinvestment into the Canadian economy,” the strategy document says.
The strategy warns of a need to “mitigate” the risk of Canada getting locked into advanced military systems owned and controlled by foreign governments that can exert control over their intellectual property.
Christyn Cianfarani, president of the Canadian Association of Defence and Security Industries, called the introduction of the defence industrial strategy a “historic turning point.”
“For the first time, we can see a clear, accountable vision for the defence sector” that comes with specific targets to grow Canada’s sovereign industrial capabilities, she said.
The document states that Ottawa will select certain Canadian defence firms as “key strategic partners” and enter into formal partnerships with them to build “world-leading champions that can meet Canada’s needs.”
The strategy seeks to increase Canada’s defence exports by 50 per cent within a decade — just as the European Union looks to massively scale up defence spending in response to Russia’s war on Ukraine.
“We will be very deliberate and open in terms of defence and security partnerships we sign with allies throughout the world and what opportunities that opens up, and be clear about what the guardrails are around … the types of exports we would envision with those countries,” Carney said.
“We will be broadening our partnerships. We’re deepening with our closest allies.”
The document also promises a suite of policy shifts to come — such as planned legislative changes to the new Defence Investment Agency to make it an independent office.
The agency is currently housed within Public Service and Procurement with a staff compliment of just 85 people, which is set to expand to roughly 400.
But the strategy cautions that “even with more efficient defence procurement, Canadian companies will still need to engage with multiple agencies.”
Conservative Leader Pierre Poilievre dismissed the document as a “salad bowl of buzzwords” and called on Ottawa to instead cut bureaucracy and streamline its purchasing decisions.
The government pledges in the document to advance a package of reforms early this year to its industrial technological benefits policy, which sets out how procurement projects get graded in terms of how they contribute to the domestic economy.
It promises a new strategy on expanding production of critical minerals tied to defence and the creation of a new program to support domestic production of ammunition and explosives.
The strategy said by 2029, Ottawa will stand up a new plant to produce nitrocellulose, which is a propellant used in munitions.
Also on Tuesday, the government set new serviceability targets for its fleets — the percentage of military vehicles ready to be deployed.
The government set deployment-ready targets of 75 per cent for the maritime fleet, 80 per cent for land vehicles and 85 per cent for aerospace — targets that national defence officials called ambitious but achievable. According to publicly released figures from National Defence, the last reported serviceability levels were 59.6 per cent for the maritime fleet, 51 per cent for land vehicles and 42.3 per cent for aerospace.
The department cited personnel shortages, past underfunding, aging vehicles and other supply chain issues as factors affecting the availability of military platforms.
This report by The Canadian Press was first published Feb. 17, 2026.
Kyle Duggan, The Canadian Press.
Industry leaders point to potential barrier in PM Carney’s defence industrial strategy
ByGenevieve Beauchemin
February 18, 2026
“They’re expecting to add 125,000 new jobs, which is basically two-and-a-half times the size of the sector: that is real growth. That is a magnitude we have not seen since basically the 1950s.”
But industry leaders warn those ambitions will not be realized if the procurement process is not streamlined. Cianfarani called it the “Achilles heel” of the strategy.
“They will have to make significant changes to the procurement system and they will have to start moving contracts. I can’t stress how much faster it needs to be than how the current system functions today,” Cianfarani said.
“If that happens, it is completely doable. If it doesn’t happen, it could undermine the entire strategy that we just heard about today.”
CTV National News Quebec Bureau Chief
ByGenevieve Beauchemin
February 18, 2026
Prime Minister Mark Carney makes an announcement as he visits CAE Inc., in Montreal, on Tuesday, Feb. 17, 2026. THE CANADIAN PRESS/Christinne Muschi
MONTREAL — Workers at the Quebec-based CAE greeted Prime Minister Mark Carney on Tuesday as he officially launched Canada’s first-ever defence industrial strategy, an ambitious policy aimed at building a robust domestic industry to reduce Canada’s reliance on foreign suppliers to arm the Canadian Armed Forces.
CAE president and CEO Matthew Bromberg applauded the government’s new strategy, saying it shows the country is committed to developing a defence industrial base in this country.
“Having seen how this works in other countries around the world, having spent 25 years in aerospace and defence, I think this is the right move for Canada, for Quebec and for CAE,” said Bromberg.
MONTREAL — Workers at the Quebec-based CAE greeted Prime Minister Mark Carney on Tuesday as he officially launched Canada’s first-ever defence industrial strategy, an ambitious policy aimed at building a robust domestic industry to reduce Canada’s reliance on foreign suppliers to arm the Canadian Armed Forces.
CAE president and CEO Matthew Bromberg applauded the government’s new strategy, saying it shows the country is committed to developing a defence industrial base in this country.
“Having seen how this works in other countries around the world, having spent 25 years in aerospace and defence, I think this is the right move for Canada, for Quebec and for CAE,” said Bromberg.
Prime Minister Mark Carney tours the facilities of CAE Inc., in Montreal, on Tuesday, Feb. 17, 2026. THE CANADIAN PRESS/Christinne Muschi
About half of CAE’s contracts are now linked to the military, with 90 per cent of its flight simulators now exported around the world.
The Canadian Association of Defence and Security Industries (CADSI) says companies like CAE, as well as several smaller manufacturers, could benefit.
“It’s landmark, it’s historic, it is a very big deal for the defence industry to say that they are going to start preferencing Canadian firms in the procurement regime,” said CADSI president and CEO Christyn Cianfarani.
About half of CAE’s contracts are now linked to the military, with 90 per cent of its flight simulators now exported around the world.
The Canadian Association of Defence and Security Industries (CADSI) says companies like CAE, as well as several smaller manufacturers, could benefit.
“It’s landmark, it’s historic, it is a very big deal for the defence industry to say that they are going to start preferencing Canadian firms in the procurement regime,” said CADSI president and CEO Christyn Cianfarani.
“They’re expecting to add 125,000 new jobs, which is basically two-and-a-half times the size of the sector: that is real growth. That is a magnitude we have not seen since basically the 1950s.”
But industry leaders warn those ambitions will not be realized if the procurement process is not streamlined. Cianfarani called it the “Achilles heel” of the strategy.
“They will have to make significant changes to the procurement system and they will have to start moving contracts. I can’t stress how much faster it needs to be than how the current system functions today,” Cianfarani said.
“If that happens, it is completely doable. If it doesn’t happen, it could undermine the entire strategy that we just heard about today.”
Prime Minister Mark Carney, flanked by Industry Minister Melanie Joly, left and Minister of National Defence David McGuinty, makes an announcement at CAE Inc., in Montreal, on Tuesday, Feb. 17, 2026. THE CANADIAN PRESS/Christinne Muschi
Carney says the centrepiece of the new approach is the Defence Investment Agency, or DIA.
“The DIA will streamline and speed procurement, will cut red tape, and it will expand domestic production,” he said.
Quebec’s Manufacturers and Exporters, or the Manufacturiers et Exportateurs du Quebec in French (MEQ), also focused on the importance of ensuring the procurement system aligns with the government’s stated priorities.
“There’s good intentions in this strategy, but I hope it works,” said MEQ president and CEO Julie White. “ And we’re going to be there to help the government make those links with the small- and medium-sized businesses.”
Carney says the centrepiece of the new approach is the Defence Investment Agency, or DIA.
“The DIA will streamline and speed procurement, will cut red tape, and it will expand domestic production,” he said.
Quebec’s Manufacturers and Exporters, or the Manufacturiers et Exportateurs du Quebec in French (MEQ), also focused on the importance of ensuring the procurement system aligns with the government’s stated priorities.
“There’s good intentions in this strategy, but I hope it works,” said MEQ president and CEO Julie White. “ And we’re going to be there to help the government make those links with the small- and medium-sized businesses.”
Prime Minister Mark Carney stands with Chief of the Defence Staff Gen. Jennie Carignan (centre left) and Minister of National Defence David McGuinty at Fort York Armoury in Toronto on Monday, June 9, 2025. THE CANADIAN PRESS/Chris Young
White also noted that there needs to be more clarity as to what the government means when it refers to Canadian manufacturers. Several military contractors are subsidiaries of foreign companies, and represent thousands of jobs in the country. Those, she says, cannot be left out of the process.
“Our goal is to revitalize our sector, put it back into shape and grow our business,” White said.
CAE, formerly Canadian Aviation Electronics, is a manufacturer of simulation technologies, and was founded by R. Patrick, an ex-Royal Canadian Air Force officer, nearly 80 years ago. The company says it has the capacity to ramp up to answer Canada’s call.
“You are standing in the single-largest facility in the world that develops and produces simulators,” said Bromberg. “We can absolutely support all the demands of Canada and the export market.”
Genevieve Beauchemin
White also noted that there needs to be more clarity as to what the government means when it refers to Canadian manufacturers. Several military contractors are subsidiaries of foreign companies, and represent thousands of jobs in the country. Those, she says, cannot be left out of the process.
“Our goal is to revitalize our sector, put it back into shape and grow our business,” White said.
CAE, formerly Canadian Aviation Electronics, is a manufacturer of simulation technologies, and was founded by R. Patrick, an ex-Royal Canadian Air Force officer, nearly 80 years ago. The company says it has the capacity to ramp up to answer Canada’s call.
“You are standing in the single-largest facility in the world that develops and produces simulators,” said Bromberg. “We can absolutely support all the demands of Canada and the export market.”
Genevieve Beauchemin
CTV National News Quebec Bureau Chief
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