Ontario Unveils Framework for Defence Industrial Strategy

Press Release + Noah Note

OTTAWA — Today at CANSEC, a leading global tradeshow hosted by the Canadian Association of Defence and Security Industries, the Ontario government unveiled its framework for the Ontario Defence Industrial Strategy (ODIS), a 10-year strategy dedicated to growing the province’s defence industry and positioning its companies and workers for long-term success. The framework highlights Ontario’s strengths and competitive advantage in research and development, critical minerals, nuclear energy, aeronautics, manufacturing and technology, as well as the province’s world-class workforce. As Canada and its allied partners prepare to make generational investments into national security projects, these strengths position Ontario to drive industrial development, create good-paying jobs and reinforce the province’s role as a trusted partner in domestic and allied defence supply chains.

“As Canada and our allies respond to increasing global uncertainty by making record investments in defence and security, Ontario has the world-class workers, manufacturers and critical resources to help protect ourselves and our allies,” said Premier Doug Ford. “Our provincial defence strategy will position Ontario to take advantage of these record investments, contributing to global security, supporting Ontario companies and bringing tens of thousands of good-paying defence jobs to our province.”

With escalating geopolitical tensions driving defence budgets higher worldwide, there is a generational economic opportunity for jurisdictions willing to act quickly to leverage industry strengths. The federal government has committed to invest an additional $81.8 billion over five years to support its defence commitments, including meeting the NATO pledge of investing five per cent of GDP in defence by 2035. This could bring annual core defence spending in Canada alone to $150 billion by 2035, while annual global defence spending could reach $6.6 trillion in the same period, driving investments in defence technology, defence infrastructure, research and more. As a result of Canada’s membership in the Security Action for Europe (SAFE) initiative, a key pillar of Readiness 2030, Canadian companies will also be allowed to bid on large-scale defence projects that will be supported by loans to EU member states of up to $244 billion.

Ontario brings decades of experience and a robust defence sector that can support these goals, including 300 defence firms that directly employ over 13,000 workers. Building on the provincial government’s strategic investments and actions to date, including accelerating responsible resource development and reinforcing domestic supply chains, the ODIS framework will capitalize on emerging opportunities, while laying the foundation for longer-term initiatives that will be launched later this year. By 2035, these opportunities could help create 43,000 good-paying jobs, contribute $6 billion to the provincial economy and generate over $400 million in annual provincial tax revenue.

The Ontario Defence Industrial Strategy, rooted in four pillars, outlines how Ontario will seize this generational opportunity for workers and businesses, serving as the foundation for long-term growth in the defence sector. This includes:

Strengthening the province’s industrial base: Ensure Ontario’s defence and dual-use firms are ready to capture value from increased federal and allied spending.

Owning tomorrow’s frontier: Make Ontario the place where future industries and technologies are built, scaled and brought to market, enabling firms to compete in an evolving defence landscape.

Expanding export reach: Position Ontario as a supplier of choice to the federal government and allies for defence and dual-use technology and equipment.

Building an integrated supply chain: Capitalize on Ontario’s strength in critical minerals and advanced manufacturing to build a resilient, vertically integrated defence supply chain.

These four pillars will be underpinned by targeted measures that will help build the skilled, industry-ready workforce needed to deliver on the strategy.

“In an increasingly uncertain world, Ontario is proud to stand as a stable, trusted and secure defence partner, ready to deliver on a generational opportunity for Canada and its allies,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By leveraging our integrated supply chains, critical mineral wealth and world-class manufacturing sector, the Ontario Defence Industrial Strategy will serve as a strategic economic tool, further positioning the province at the forefront of the allied defence supply chain.”

The framework will serve as the foundation for consultations with municipalities, academia and industry stakeholders over the coming weeks and months. Feedback received during consultations will be used to inform the strategy’s development, ensuring that the final pathway is responsive to emerging trends and positions the province to accurately capture tomorrow’s defence opportunities.

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Quick Facts

• A national hub for defence manufacturing, Ontario is home to over 300 companies generating more than $5 billion in annual revenue and directly employing more than 13,000 people.

• Ontario’s defence sector is diverse and ready to support Canada’s national security commitments, with strengths across key areas, including armoured vehicles, aerospace, shipbuilding, advanced manufacturing and multi-use technologies.

• Home to an advanced technology ecosystem, Ontario is equipped to respond to modern security threats while developing and supplying expertise across emerging technologies such as cybersecurity, uncrewed systems, AI and quantum capabilities.

• Ontario has one of the most highly skilled workforces in the world, producing more than 94,000 STEM graduates every year

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Quotes

"As global economic uncertainty continues, our government is securing Ontario’s place as a leader in defence by leveraging our competitive advantages in key sectors through the Ontario Defence Industrial Strategy framework. This strategy will create up to 43,000 good-paying jobs, build on Ontario’s strengths in manufacturing, technology and our world-class skilled workforce to add $6 billion to the provincial economy and make Ontario more competitive, resilient and self-reliant."

Peter Bethlenfalvy

Minister of Finance

"In the face of global threats, Ontario must continue to leverage our world-class postsecondary institutions and groundbreaking research talent to protect our province and drive our economy. Through the Ontario Defence Industrial Strategy, our government is ensuring that our province has the highly skilled workers and cutting-edge innovation to cement Ontario as a global leader in defence."

Nolan Quinn

Minister of Colleges, Universities, Research Excellence and Security

"From the Ring of Fire to our world-leading nuclear sector, Ontario is uniquely positioned to power the future of allied defence and security. This strategy will propel Ontario as a global leader in democratic supply chains, clean energy and the next generation of defense manufacturing. Ontario’s nuclear advantage and plan to build mines faster is strengthening Canada’s sovereignty at a critical time."

Stephen Lecce

Minister of Energy and Mines

"Ontario's greatest defence asset is its workforce. With more than 94,000 STEM graduates every year, a world-class skilled trades sector and decades of manufacturing excellence, the province has the people needed to deliver for our allies across the globe. The Ontario Defence Industrial Strategy is our commitment to the world that Ontario is ready to build the next generation of defence capability."

David Piccini

Minister of Labour, Immigration, Training and Skills Development

"Ottawa is proud to be at the heart of Canada’s defence and security community. The province’s new Defence Industrial Strategy recognizes what we see every day in this city—world-class talent, innovation, and a strong manufacturing base that supports both our economy and our national interest. We’re ready to work with the Government of Ontario to create good jobs and strengthen opportunities for people and businesses here in Ottawa."

Mark Sutcliffe

Mayor of Ottawa

"Canadian sovereignty depends on strong military capability and economic independence. Ontario’s new Defence Industrial Strategy will deliver both the manufacturing backbone for equipping our military and create jobs for our citizens. Barrie is uniquely positioned with our broad manufacturing base and proximity to Base Borden to deliver as part of the Team Ontario and Team Canada defence strategy."

Alex Nuttall

Mayor of Barrie

"As defence budgets rise and allies move quickly to strengthen their security capabilities, Ontario is ready, focused and moving with speed, purpose and confidence to meet the objectives of the defence strategy. This framework sets out a credible path forward for the development of a Defence Industrial Strategy that will position Ontario companies to seize the opportunities ahead, strengthen the province’s defence supply chains and support long-term, sustained growth."

Bernard Derible

Ontario Military Defence Representative

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Noah Note: This is a framework, so you can't really expect much to come from this. A lot of the stuff in here is stuff that has already been announced or planned for a while.

$215 million to support the provincial shipbuilding sector? We had a whole Maritime Strategy. $50 million through Venture Ontario for early-stage defence start-ups? Seen it. Ghe use of Special Economic Zone designations to speed up timelines and cut through the approval process? Ford has been leveraging this forever, and cities (including my own) have asked for it repeatedly. The Ontario's Military Defence Representative (OMDR) has a quote here!

There are some things here that are new, expanding IP protection mechanisms through IPON, The establishment of a dedicated sales book, which every province and the Feds should do, and the establishment of dedicated Procurement Staff. All of which are nice to see, little, niche things that can get forgotten and could have benefit, especially a proper Sales book, but still all mostly minor.

The strategy puts a lot of faith in space and orbital defence, amd outlined support policies for Defence-Focused Enducation and working on how to close Training Gaps. Both of which are good policies. Universities have been slowly stepping up, and I had the good chance to talk to several, including my own this week, about policies and programs that can better align with Canada’s Defence Policies.

So having the province on board to support is a good recognition of the value, and hopefully gives some incentive to people to actually make some changes. Overall, the framework is fine? It's mostly stuff that's already established and ongoing. It isn't really much new, and the new qhile fairly decent is relatively small scale in the department of industry-scale value.

But again, only a framework so you get what you get.