Post by : Meena Ariff

Ontario's Economic Development Minister Vic Fedeli is intensifying the push for significant investments in the defense sector as Canada gears up for its most extensive military acquisitions in years.

With a swift move towards a new submarine program and Sweden’s Saab proposing local fighter jet manufacturing, provinces are vying for enduring industrial benefits and skilled job opportunities.

Fedeli recently toured the TKMS submarine facility in Germany and plans to visit Hanwha's shipyard in South Korea, both companies being contenders for Canada's submarine contract. The final decision is projected for 2026 and could involve billions.

While submarine maintenance will largely be conducted on Canadian shores, Ontario remains a key player, hosting around 300 defense firms, including advanced manufacturing and software companies. Ontario Shipbuilding, formerly Heddle, is gearing up for potential opportunities.

Ontario also boasts a robust aerospace industry. Bombardier is already producing Global Eye surveillance aircraft in collaboration with Saab, and the province aims to be included if Ottawa opts for domestic assembly of Saab's Gripen fighter jets. Meanwhile, the federal government is reconsidering its previous intentions to acquire more F-35 jets.

Fedeli highlighted Ontario's extensive manufacturing capabilities—from aircraft to microchips—and stated that the province is ready to contend with Quebec, which has historically led aerospace manufacturing.

Canada is on the brink of a substantial boost in military expenditures, with plans to reach five percent of GDP in upcoming years. As Europe escalates defense production and global demand soars, Ontario aims to establish itself as a central hub for new supply chains.

Provincial authorities are also looking into financial incentives akin to those offered for electric vehicle and battery production to lure defense manufacturers.

Canadian military officials have been inspecting foreign shipyards during the evaluation phase, highlighting the competitive and urgent nature of the procurement process.