Canada’s New Defence Industrial Strategy: What it means for Defence Team members

February 20 2026 - Defence Stories

Estimated read time: 2:24

Canada has launched its first-ever Defence Industrial Strategy (DIS) - Security, Sovereignty and Prosperity: Canada's Defence Industrial Strategy. The goal is simple: to strengthen Canada's defence industrial base so the Defence Team can access the equipment and technologies the Canadian Armed Forces (CAF) need, quickly, reliably, and from secure and resilient sources. It fulfills the Government of Canada's commitment to rebuild Canada's defence capacity, rearm the CAF, and reinvest in the Canadian Defence Industry.

The DIS outlines how Canada will scale up domestic defence production, strengthen our strategic autonomy, and better support our allies and partners. It aligns defence investments with Canada's industrial capabilities, so the CAF has access to the tools required to defend, deter, and defeat current and future threats.

A stronger and more resilient defence ecosystem

The DIS helps build a stronger working relationship between the Government of Canada and Canadian industry, strengthening Canada's defence industrial sector and making better use of partners at home and around the world. A key part of the DIS is directing investments toward Canadian-madecapabilities, so Canada relies less on foreign suppliers and can better withstand global disruptions.

The investment in Canadian sovereign capabilities is critical to building a resilient defence ecosystem. Sovereign capabilities are those that can be produced, maintained, and sustained domestically. The DIS outlined ten sovereign capabilities for the Defence Team to prioritize to maximize our strategic autonomy:

• Aerospace
• Ammunition
• Digital Systems
• In-ServiceSupport
• Sensors
• Space
• Specialized manufacturing
• Personnel protection
• Training and simulation
• Uncrewed and autonomous systems

To support these goals, Budget 2025 provided an initial $6.6 billion over five years for the DIS, starting in 2025-26, to:

• accelerate innovation;
• stabilize and strengthen supply chains; and
• help Canadian companies scale production and compete globally.

These investments will support the development and delivery of essential equipment to the CAF, from critical spare parts to advanced systems.

A clearer, faster way to deliver capabilities

An important part of the DIS is the new 'Build-Partner-Buy'framework:

• Build in Canada whenever possible;
• Partner with trusted allies when joint development makes sense; and,
• Buy only when building or partnering is not feasible.

This approach cuts down unnecessary steps, improves teamwork, and speeds up how we deliver projects. It leads to faster decisions, clearer responsibilities, and smoother workflows across the Defence Team. The new Defence Investment Agency will help guide this work so that investments support both CAF needs and Canada's industrial strengths.

Another important change noted in the DIS is the need to work with industry earlier. By bringing industry into the conversation sooner, we can develop and deliver capabilities that better match what the CAF needs.

How the DIS supports your work

The DIS aims to create a more predictable and efficient workplace for the Defence Team by providing:

• clearer, more consistent processes;
• better planning and prioritization;
• less duplication across organizations; and
• stronger alignment between CAF requirements and industrial capacity.

CAF members can expect faster access to modern equipment and better sustainment support. Defence Team members will see improvements in coordination and workflow in procurement, materiel management, policy development, capability development, science, information technology, engineering, and communications.

Everyone has a role to play

Every Defence Team member contributes to putting the DIS into action. You can help by:

• reviewing the strategy and understanding how it relates to your work;
• engaging early with partners and stakeholders;
• streamlining processes within your area;
• supporting domestic innovation and production; and,
• amplifying awareness and promoting alignment.

By working together, we can build a system that equips the CAF, supports allies and partners, and strengthens Canada's security and prosperity.