This executive summary lays out highlights from the report Securing the Future: Rebuilding Canada鈥檚 Defence Industrial Base for a New Era written by Max Bell School Master of Public Policy students Michael Black, Tess Corkery, Kevin Haynes, Sean Jenner, and Hannah Male as part of the 2025 Policy Lab.
Access the summary and presentation below, and read their full report here.听Lire le rapport en fran莽ais ici.
Canada鈥檚 defence procurement system, and broader defence industrial base, face significant challenges in an increasingly dangerous world. Instability in the Middle East, the ongoing war in Ukraine, and escalating tensions in the Indo-Pacific illustrate the fragility of today鈥檚 global security environment. For decades, Canada鈥檚 integration with the United States has ensured interoperability, access to advanced technologies, and economies of scale. Yet, the current strain between Canada and the U.S., has also highlighted the vulnerabilities created by this reliance. Creating an independent and resilient defence industrial base will enhance our strategic autonomy. Canada鈥檚 defence industrial base faces significant challenges, starting with defence procurement鈥檚 fragmented structure, split across multiple departments and agencies, which has created bureaucratic silos and delays, hampering agility and accountability. The absence of a comprehensive, coordinated understanding of Canada鈥檚 defence industrial base compounds these issues. Small and Medium-Sized Enterprises (SMEs), which form the backbone of Canada鈥檚 defence industrial base, often face significant barriers to scaling due to limited access to patient capital(financing from investors willing to make long-term investments) and cumbersome procurement processes. Additionally, the lack of a legislated National Defence Strategy means that Canada鈥檚 defence planning is unpredictable for both industry and allies.
To address these issues, this report, Securing the Future: Rebuilding Canada鈥檚 Defence Industrial Base for a New Era, proposes a comprehensive policy agenda structured around the G.R.I.P Framework 鈥� Governance, Revitalize Industry, International Partnerships, and Policy/Strategy. The goal is to position Canada as a more resilient and agile defence partner, especially with key allies like the United States. Central to this agenda is the creation of a Canadian Defence Procurement Agency (CDPA) to streamline procurement processes and centralize accountability. Under this agency, the development of a National Defence Capability Mapping System would give decision makers and industry real-time insight into Canada鈥檚 defence capabilities and gaps. The CDPA would have a role in a newly created defence-focused venture capital fund to develop industry and a critical minerals reserve to build resilience. In the international arena, Canada must actively pursue membership in the technology pillar of AUKUS and engage with European frameworks to diversify alliances and enhance technological collaboration. Finally, a National Defence Strategy Act (NDSA) would establish a legislated requirement for a quadrennial defence and industrial strategy, including threat assessments and investment frameworks, thereby enhancing transparency, interdepartmental coordination, and strategic foresight.
Collectively, these policies offer a pathway to transform Canada鈥檚 defence procurement and industrial landscape from a fragmented, risk-averse system to a cohesive, strategically aligned ecosystem. Implementing this agenda would not only strengthen Canada鈥檚 defence industrial base but also ensure the country remains a credible partner in continental and global security, while reinforcing its sovereignty in an increasingly contested international environment.
