Scaling defence, industry, and economic growth in Canada
Key trends from government and industry leaders
As defence investment accelerates, leaders across government, industry, and communities are grappling with how to move from strategy to action. There’s clear demand to “Build, Partner, and Buy” in a way that increases defence capabilities, scales industrial capacity, invests in dual-use infrastructure, and drives economic growth with new jobs for Canadians. Based on recent discussions with Canadian leaders, several key insights are emerging around priorities, constraints, and the conditions required to translate opportunity into long-term capability.
Why this matters now
Canada is entering a once‑in‑a‑generation phase of defence investment, designed to strengthen sovereign capability while driving long‑term economic and industrial advantage.
Emerging signals
1. Defence is a long‑term economic anchor, not a temporary budget item
Leaders consistently describe defence investment as a multi-decade driver of economic and industrial growth, rather than a short-term spike in spending. This perspective is influencing how leaders think about workforce planning, infrastructure, and industrial readiness.
What this means: Regions that position defence as an enduring economic driver are more likely to capture long-term value through sustainment, maintenance, and in-service support.
2. Skilled talent is harder to find than capital
While funding signals are strong, leaders highlight growing gaps in skilled talent across marine engineering, digital, cyber, aerospace, and systems integration roles. Workforce capacity is already shaping delivery timelines and confidence in action.
What this means: Now more than ever, success depends on workforce readiness. This means building a strong talent pipeline, before demand outpaces supply.
3. Speed of innovation is critical
Leaders see speed of innovation as essential to staying ahead of evolving threats. The ability to rapidly test, adapt and adopt, as well as scale sovereign technologies like drones, AI, and cyber capabilities is increasingly central to resilience. Speed of innovation determines how fast capabilities emerge; strategic alignment determines whether they reach impact.
What this means: The ability to drive innovation at pace is a core readiness capability.
4. Defence infrastructure needs to also support civilian needs
Defence expansion is consistently linked to civilian infrastructure needs, such as ports, housing, transportation, utilities, and social services. Several examples are highlighted, including secure drones and AI that can help improve defence readiness, and in a dual-use role, also be used in respond to natural disasters. Leaders emphasize the need to plan these assets as shared, dual-use investments.
What this means: Dual-use infrastructure can drive sustainable economic growth and increase defence resiliency and capabilities.
5. Strategic alignment is more than a nice-to-have
There is clear agreement that fragmented approaches slow down momentum. To move from ideas to real impact, there needs to be coordinated action across municipalities, industry, institutions, governments, and Indigenous communities.
When objectives across policy, procurement, and delivery don’t align, it negatively impacts operational readiness and leads to defence and security threats. Delays aren’t viewed as administrative friction, but as strategic risk in an increasingly tense environment.
What this means: Now is the time for organizations and jurisdictions to work together. Regions and organizations that act as a system, rather than a collection of actors, will be better positioned to capture early wins and long‑term capability development.
What leaders are grappling with next
Looking ahead, there is a clear need to translate alignment into action—particularly where talent, infrastructure, and industrial capability intersect.
The focus is shifting from outlining opportunity to demonstrating readiness through clear decisions and actions that signal momentum to industry, partners, and investors.
Deloitte perspective
These insights reinforce the importance of connecting defence strategy to decisive action. It’s clear that there’s an opportunity to strengthen readiness through alignment across talent, technology, and infrastructure. Deloitte supports defence, industry, and government leaders in navigating complexity, strengthening resilience, and accelerating delivery where it matters most.
Now is the time to act
Leaders across the defence ecosystem should mobilize to advance key defence priorities. Deloitte’s defence leaders are available to help you explore what these signals mean for your organization.
Disclaimer
This publication contains general information only and should not be used as a basis for any decision or action that may affect you or your business. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.
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