Minister Valdez highlights Canada's new Defence Industrial Strategy to strengthen security and support small businesses

MISSISSAUGA, ON, April 2, 2026 /CNW/ - Through the Defence Industrial Strategy, the federal government is advancing a long-term, whole-of-government approach to strengthening the defence industrial base as a pillar of national security, economic resilience and prosperity. At a time of growing global uncertainty, Canada is focused on rebuilding, rearming and reinvesting in the Canadian Armed Forces, while ensuring Canadian workers and small businesses are at the centre of that effort.

Today, the Honourable Rechie Valdez, Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism), highlighted how Canada's Defence Industrial Strategy is supporting small and medium-sized businesses across the country. Representing 92% of firms and 40% of jobs in the defence sector, these businesses are critical to strengthening supply chains, driving innovation and ensuring the Canadian Armed Forces have the equipment they need to defend Canada and its sovereignty. The strategy will create up to 125,000 high-paying jobs, increase defence exports by 50% and grow revenues for small and medium-sized businesses by more than $5.1 billion annually.

Through the strategy, targeted investments are helping small and medium-sized businesses grow, innovate and compete at every stage, from research and development to commercialization, scale-up and integration into domestic and global defence supply chains. Up to $6 billion is being allocated through the Business Development Bank of Canada's new Defence Platform to provide financing and advisory services, alongside a new Defence Industry Assist stream through the National Research Council of Canada to support the development of innovative defence and dual-use technologies. Regional development agencies are also delivering the Regional Defence Investment Initiative, a $357 million program to help businesses expand and access new markets.

These investments are part of a broader effort to align defence spending with Canada's industrial strengths. By prioritizing Canadian companies and expanding domestic production, Canada is reducing its reliance on foreign suppliers and ensuring the Canadian Armed Forces have the capabilities they need, when they need them. This approach strengthens supply chains, supports Canadian workers and businesses and reinforces Canada as a reliable partner to its allies.

Quotes

"As Canada makes historic investments to strengthen our security and defend our sovereignty, we are making sure small and medium-sized businesses are at the centre of this effort. They represent 92% of firms in Canada's defence sector and account for 40% of its jobs. Through our Defence Industrial Strategy, we are helping these businesses innovate, strengthen Canadian supply chains and grow their revenues by more than $5.1 billion annually. That is how we build a stronger, safer Canada while creating good jobs and opportunity here at home."
– The Honourable Rechie Valdez, Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism)

Quick facts

• Initial investments under the Defence Industrial Strategy contributed to Canada spending 2% of gross domestic product (GDP) on defence in 2025–2026.
• Increasing investments in core military capabilities, in building up Canadian industry and in dual-use technologies are putting Canada on a pathway to fulfill the new North Atlantic Treaty Organization (NATO) Defence Investment Pledge to invest 5% of GDP on defence by 2035.
• The Canadian defence industry contributes nearly $10 billion to the GDP and supports over 81,000 jobs.

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Associated links

• Canada advances Defence Industrial Strategy to strengthen security, sovereignty and prosperity
• Canada's new government is rebuilding, rearming, and reinvesting in the Canadian Armed Forces
• Canada joins new NATO Defence Investment Pledge
• Prime Minister Carney launches new Defence Investment Agency to rebuild, rearm, and reinvest in the Canadian Armed Forces faster

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SOURCE Innovation, Science and Economic Development Canada

Contacts: Chris Zhou, Director of Communications, Office of the Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism), [email protected]; Media Relations: Innovation, Science and Economic Development Canada, [email protected]