“The work of defending Canada is the work of building Canada. Security and prosperity are mutually reinforcing foundations of the true North, strong and free. Our new Defence Industrial Strategy ensures Canada remains a sovereign nation, in charge of its own destiny. That’s Canada strong, and that’s what we are building, together.”
Mark Carney, Prime Minister of Canada
The world is changing rapidly. The international rules-based order is fading, and technological change is expanding the fields of conflict. In response, Canada’s new government is focused on what Canadians can control: rebuilding, rearming, and reinvesting in the Canadian Armed Forces (CAF). Canada is on track to hit our 2% NATO spending target this fiscal year and applications to join the CAF are up nearly 13%.
To protect Canada’s sovereignty, build Canadian prosperity, and strengthen Canadian strategic autonomy, the federal government is changing how Canada invests in defence.
The Defence Industrial Strategy is meant to transform Canadian defence industries by prioritizing Canadian suppliers and materials, investing in Canadian innovation and commercialization, and streamlining procurement to give businesses consistent and predictable demand. This will enable Canada’s aerospace, cyber, and other industries to scale up operations to sell more domestically and to trusted partners around the world.
The Defence Industrial Strategy positions Canadian industry to take advantage of $180 billion in defence procurement opportunities and $290 billion in defence-related capital investment opportunities in Canada over the next 10 years, with an anticipated $125 billion downstream economic benefit by 2035.
The Defence Industrial Strategy is projected to create 125,000 high-paying careers, increase defence exports by 50%, raise the share of defence acquisitions awarded to Canadian firms to 70%, and grow Canadian defence industry revenues by 240%. Within a decade, Canada will raise maritime fleet serviceability to 75%, land fleets to 80%, and aerospace fleets to 85% to bolster Canadian defence.
In total, the Defence Industrial Strategy is an investment of over half a trillion dollars in Canadian security, economic prosperity, and Canadian sovereignty.
The Defence Investment Agency (DIA) is central to this strategy. It will streamline processes, cut red tape, and speed up delivery. It will equip the CAF with what it needs, when it needs it, and will prioritize manufacturing and strategic partnerships with Canadian firms, including small and medium-sized businesses. The DIA will also lead Canada’s participation in joint procurement initiatives.
Announcement:
Source:
News Release, February 17, 2026, Montréal, Québec: Prime Minister Carney launches Canada’s first Defence Industrial Strategy to strengthen security, create prosperity, and reinforce strategic autonomy https://www.pm.gc.ca/en/news/news-releases/2026/02/17/prime-minister-carney-launches-canadas-first-defence-industrial
Resource:
Canada’s Defence Industrial Strategy: https://www.canada.ca/en/department-national-defence/corporate/reports-publications/industrial-strategy/security-sovereignty-prosperity.html