Ontario announced nearly $2.6 million in funding at the Farnborough International Airshow for Downsview Aerospace Innovation & Research, part of a broader $3.2 million push to shield aerospace and defence workers from trade disruptions and help small businesses cash in on rising defence spending.
Why it matters: Global defence spending is climbing, and Ontario wants its aerospace supply chain ready to compete for that work instead of getting squeezed out by tariffs and trade uncertainty.
The money: Nearly $2.6 million through the Trade-Impacted Communities Program, funding a $3.2 million initiative run by DAIR, a not-for-profit consortium of Ontario aerospace companies, academic institutions, and research groups.
What it funds: Three programs. The DAIR Green Fund backs R&D on new aerospace technologies. The Supplier Development Initiative helps small and medium businesses upgrade their tech, operations, and workforce skills. The Defence Readiness Program helps companies qualify for defence contracts and secure global supply chains.
What they’re saying: Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade: “As Canada and its allies make generational investments in the aerospace and defence sectors, Ontario stands ready to seize this once-in-a-lifetime opportunity and unlock new partnerships for our highly-skilled workforce.”
Phil Arthurs, DAIR’s Executive Director: “This investment through the Trade-Impacted Communities Program will help DAIR support Ontario SMEs in becoming more innovative, competitive, and resilient by advancing collaborative R&D, strengthening manufacturing capabilities, enhancing defence readiness, and helping to mitigate the impacts of an increasingly uncertain global environment.”
By the numbers: Ontario’s aerospace industry employs more than 25,000 people directly across 200-plus companies, plus nearly 24,000 indirect jobs. The TICP itself is a $40 million program that has drawn more than 80 applications so far.
The big picture: This is part of Ontario’s roughly $30 billion tariff relief plan, aimed at diversifying supply chains and cutting reliance on U.S. markets as trade tensions persist.
Bottom line: A modest check with a bigger goal. Ontario is trying to make sure its aerospace SMEs are shovel ready when defence contracts start flowing.
