Canada's Defence Industrial Strategy

Canada’s Defence Industrial Strategy, released in February 2026, is a long-term plan to invest in Canada’s defence industry to ensure it can provide secure, reliable, and timely capabilities to the Canadian Armed Forces, as well as to Canada’s allies and partners.

The strategy aims to strengthen Canada’s defence industrial base, including the network of businesses, supply chains, and innovation systems that design, build, maintain, and support military equipment and capabilities. It also supports national prosperity, economic security, and sovereignty.

The strategy identifies ten Key Sovereign Capabilities for priority investment, including aerospace, ammunition, digital systems, in-service support, sensors, space, specialized manufacturing, personnel protection, training and simulation, and uncrewed and autonomous systems. Newfoundland and Labrador is well positioned and has the capacity to contribute to these capabilities.

• Aligns regional capabilities with national defence priorities
• Supports development of key sovereign defence capabilities
• Strengthens Canada’s industrial base and supply chain resilience
• Contributes to national security, economic growth, and sovereignty

Newfoundland and Labrador’s ability to contribute to these priority areas is supported by a combination of established industries, emerging sectors, and specialized expertise.

• The province’s offshore energy sector, supported by strong marine and industrial capabilities, provides a foundation for large-scale project delivery and complex operations.
• A growing technology sector is advancing capabilities in areas relevant to defence applications, including digital systems, sensing technologies, and autonomous systems.
• The province’s workforce brings experience in major construction and industrial projects across offshore energy, hydroelectric generation, mining, and marine operations, supporting defence industrial capacity.
• Newfoundland and Labrador also has expertise, training facilities, and advanced simulation technologies that support operations in Arctic, sub-Arctic, and cold-ocean environments, contributing to defence operations and technology development in harsh conditions.
• The emerging aerospace sector, including development of the Atlantic Spaceport Complex, supports future commercial and sovereign space capabilities.

These strengths position Newfoundland and Labrador to play a significant role in supporting Canada’s Defence Industrial Strategy and contributing to national and allied defence and security objectives.