Canada is bolstering its defense industry as US relations fray. A boom is on for local contractors

As Canada seeks to lessen its reliance on American military suppliers, a surge is underway to bolster the nation's defense industry. Toronto's garment factory is producing helmet covers for the Canadian Armed Forces, showcasing an increasing number of Canadian companies venturing into defense contracting.

With military spending on the rise, Canadian defense contractors are developing remote sensors for the Arctic region, drones for resupplying soldiers, and autonomous robots. This surge in defense spending is driven by Prime Minister Mark Carney's pledge to enhance the country's economic self-sufficiency amid deteriorating relations with the United States, including recent tariff escalations.

Canada's initial investment is a drop in the bucket compared to the U.S. defense budget, but its strategy aims to bolster domestic defense capabilities, not solely U.S. contractors. The government has pledged $60 billion over the next five years, along with support for domestic businesses to be part of defense and security supply chains.

The defense boom is evident at defense events, with many new companies and industries stepping into the field. Wuxly founder and CEO James Yurichuk notes the company's helmet covers for Canadian soldiers, which allow soldiers to attach call sign patches, gear, and other accessories. The company also manufactures military parkas and tank covers, and has supplied gear to Ukraine's military, including 40,000 female uniforms.

The Canadian strategy emphasizes diversifying away from U.S. defense contractors and tapping a wider global pool of suppliers for military hardware. It also aims to foster domestic defense supply chains, investing over half a trillion dollars and creating 125,000 jobs by the industry's size tripling over the next decade. Canadian companies and European allies are also finding new opportunities, with Ottawa securing deals for radar planes from Sweden and submarines from Germany.