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A national delegation of Canadian defence and dual-use companies was on Parliament Hill today. They want Ottawa to stop treating every firm that operates in Canada the same way in procurement, whether or not the firm is Canadian-owned.
Driving the news: The Alliance of Canadian Defence Companies (ACDC) is holding its first Hill Day, meeting senior federal officials and parliamentarians. Its recommendations draw on consultations with close to 90 firms and a member survey.
By the numbers: Among 49 companies that answered ACDC’s survey, more certainty about future Canadian defence demand would lead:
86 per cent to hire more staff
73 per cent to develop new capabilities
67 per cent to expand production or delivery capacity
67 per cent to increase R&D
WHY IT MATTERS
Spending is rising. ACDC argues that how procurement rules define “Canadian” will decide whether the new money builds lasting domestic capacity or flows to firms whose IP and decision-making sit elsewhere.
Trials aren’t turning into contracts. Companies told ACDC they pass military trials and then can’t get contracts. They also described limited visibility into procurement decisions and uncertainty about future demand.
Sovereignty is the frame. The association wants ownership and control weighed most heavily in priority sovereign capability areas.
The ask:
Define Canadian content more strictly. Procurement should look at where IP is held, where key decisions are made, and whether critical technologies can be produced and maintained in Canada, not just at where a company operates.
Graduated procurement. Streamlined small initial contracts, followed by larger orders as technologies hit operational and performance milestones.
Earlier, clearer engagement. ACDC wants Canadian Armed Forces personnel involved sooner, clearer procurement timelines and more predictable demand.
What they’re saying: “We’ve heard remarkably consistent concerns about procurement, access to opportunities and the certainty needed to invest and grow,” said Dasha Cohen, ACDC’s executive director.
Bachar Elzein, founder and CEO of Reaction Dynamics, put it in space terms: “Canada cannot call itself sovereign in space if every satellite it depends on has to launch on another country’s rocket.”
Who’s in the room: The delegation includes North Vector Dynamics, Dominion Dynamics, OVA, PV Labs, Kraken Robotics, Reaction Dynamics, Kepler Communications, JASCO Applied Sciences, Wuxly, Qohash and Canadian Strategic Missions Corporation. Between them they cover autonomous systems, aerospace, marine and space, advanced manufacturing, sensors and cybersecurity.
The big picture: ACDC represents about 200 Canadian-owned and controlled firms. It was founded by co-chairs Eliot Pence of Dominion Dynamics and Paul Ziadé of North Vector Dynamics.
BOTTOM LINE: Canada’s domestic defence firms are no longer just asking for a bigger share of rising budgets. They want “Canadian” defined in a way that favours them. Whether Ottawa writes ownership and control into procurement rules will show how serious it is about sovereign capability.
