Current global security environment prompts important questions for Canada’s defence industry

Q: Defence and national security seem to be hot political topics right now. There’s much discussion around new investments, military capabilities and how Canada engages in international alliances. What does that translate into, on the ground, from a business perspective?

The global security environment has deteriorated in the past 18 months and a big reason for that has been Russia’s illegal and unprovoked invasion of Ukraine. The discussions that’s prompted are important ones. Are we ready to defend Canada in the modern era? What do we need to do that effectively? There’s a defence policy update happening right now that, in theory, could start providing a view into the government’s thinking on these questions. But, on the ground, business cycles in defence are often measured in years — even decades. Companies will position themselves well in advance so they’re ready to jump when an RFP finally hits the street on a large advancing its defence investment plan. Last summer, some new NORAD modernization and continental defence projects were added to the list and there have been some recent, one-off acquisitions linked to the war in Ukraine. But, as always, companies will position themselves in response to the customer’s stated needs and those needs must be clearly articulated before we begin making changes to lines of business or ramping up production.

Q: Defence companies in the National Capital Region are quite bullish. But they often cite government red tape and regulations, talent shortages and challenges with accessing global markets as obstacles. Is there anything more the government can do to support local industry players?

Defence is not like other markets. It’s tightly regulated and governments worldwide often favour their defence industrial bases, so the market can be quite protectionist. Canada’s government could do more to smooth the path for homegrown companies and champion them abroad. Likewise, we could look at more partnerships between government and industry — like talent exchanges — to help address talent shortages. This need is particularly true in the cyber domain. And finally, the industry understands that export regulations exist for a reason. But the government must ensure that it meets its service standards when issuing export permits and security clearances. These are tough challenges, but the solutions are there. And CADSI, as the voice of the Canadian defence industry, has been pushing hard for them in recent years.

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project like the Future Fighter or the National Shipbuilding Strategy. Long-term planning and visibility are important. In 2017, the government unveiled its overarching defence plan – Strong, Secure, Engaged, or “SSE” for short – and since then it’s been steadily implementing that roadmap, along with

Officially, we describe CANSEC as North America’s premier defence, security and emerging technologies trade show. But I think, at its core, it’s a connection point; for industry, for government and for the military. It’s an opportunity for 300-plus companies to show off their latest and greatest capabilities directly to the customer. There are massive defence trade shows in Europe and the Middle East and we consider CANSEC to be a boutique version of that — distilling the best parts of those events and condensing them into two high-value, networking-packed days.