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Harry Neutel's avatar

After reading Ethan's piece interviewing Josh Ogdan of AVSS, this seems like a logical next step. It's the big boys with lots of capital that can afford to buy ready made solutions from foreign suppliers, and can afford to operate on much smaller margins, as they have other revenue streams, and they can expect to see large volumes over the long term if they can win contracts. Some may see this as an effort by bit players to beat the big boys on optics, and that's not even really false, but it avoids the point. If we want a robust, diverse group of defence suppliers, we can't always prioritize the easy option. It's a variation of the classic saying, "those who trade their liberty for safety will end up with neither." Only in this case, we are (or, arguably, have been) trading sovereign capabilities for speed and volume. And, again arguably, we ended up with none of those. Because at the end of the day, the original suppliers of foreign owned systems have limited incentive to tweak designs, or scale local production in anticipation of our needs. For them, the sale is already made, why bother continuing to work the sale? And if a Canadian company is bringing production to Canada without owning the IP, that ties an arm behind their back for future modifications and upgrades.

It's the same argument, writ smaller, that is playing out in almost every big defence procurement in Canada right now. Only with drones, Canada is actually in a position to offer real domestic competition to foreign developed options, and how we treat Canadian SMEs in this space will largely be the first sign of how we will support domestic capabilities elsewhere. Are the powers that be happy with the largely branch plant model that most of our defence primes currently reflect? Or are they serious about building up truely sovereign capabilities?

I dream of Canadian consortiums buying up GDLS and Lockheed Canada, so there is no longer the tension inherant in using our most developed defence primes, but I don't see that happening in anything like the near term, if ever. But maybe we can avoid the same tension from ever developing in new areas like drones. One can hope, anyways.

Gary Slatter's avatar

Don’t know the companies

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