Canada has the assets and fiscal capacity to strengthen sovereignty and economic resilience, but it must accelerate execution to deliver projects at scale, study finds
TORONTO, May 22, 2026 /CNW/ - Meeting Canada's defence ambitions will require improvements in procurement, workforce readiness and access to capital, finds a new study by KPMG Canada. The report calls for stronger coordination across industry, government, Indigenous groups and other stakeholders to accelerate projects and boost Canadian competitiveness.
The National Interest & Defence Study (NIDS), drawing on expert insights from more than 70 leaders across defence, capital, infrastructure, digital, supply chains, and communities and organizations, finds that while Canada has made significant progress in elevating defence, sovereignty and resilience as national priorities, the country's ability to execute at speed and scale will determine whether this momentum translates into long-term economic and strategic advantage.
When asked about key pressure points, nearly two-thirds (63 per cent) of Canadian business leaders interviewed said they are concerned that complex procurement and funding processes are delaying major capital projects; while shortages in skilled talent and limited access to capital and tax incentives, particularly for smaller firms, are making it harder to deliver projects and bring new ideas to market.
The study comes amid rising geopolitical instability, intensifying competition for critical resources, as well as increasing and accelerating defence spending among NATO allies. The report argues that Canada's challenge is no longer defining its ambition; it is converting strategy into capability.
"Defence spending can be a powerful economic driver, especially if it is used to build Canada's domestic industrial base and boost long-term productivity," says Ali Jaffery, Chief Economist, KPMG Canada. "The government's direction is encouraging, but delivery is the real test. The next step is turning ambition into action."
Canada's Budget 2025 and the Defence Industrial Strategy (DIS) together signal a shift toward strengthening domestic industrial capacity, reducing strategic dependencies and reinforcing economic resilience across infrastructure, energy, digital sovereignty and defence.
The report underscores that the implementation of the DIS, combined with access to new capital through initiatives like the NATO Defence, Security and Resilience Bank (DSRB), will be central to accelerating project delivery, attracting more private investment, and closing longstanding execution gaps.
"This is a high-stakes moment for Canada. Global demand for secure supply chains, critical minerals, energy and defence capacity is growing quickly," says Tim Prince, Canadian Managing Partner, Clients and Markets, KPMG Canada. "Canada is well positioned to play a larger role in delivering this demand but capturing that opportunity will require government, industry and other national stakeholders to align around faster and more effective project delivery."
The study also stresses that Indigenous partnership is a foundational condition for delivery, with early involvement, governance participation and access to financing increasingly critical.
The National Interest & Defence Study is a multi-year commitment to support conversations and help leaders and government move from insights to execution when it comes to Canada's evolving defence and resilience ecosystem.
About KPMG Canada
KPMG LLP, a limited liability partnership, is a full-service Audit, Tax and Advisory firm owned and operated by Canadians. For over 150 years, our professionals have provided consulting, accounting, auditing, and tax services to Canadians, inspiring confidence, empowering change, and driving innovation. Guided by our core values of Integrity, Excellence, Courage, Together, For Better, KPMG employs more than 10,000 people in over 40 locations across Canada, serving private- and public-sector clients. KPMG is consistently ranked one of Canada's top employers and one of the best places to work in the country.
The firm is established under the laws of Ontario and is a member of KPMG's global organization of independent member firms affiliated with KPMG International, a private English company limited by guarantee. Each KPMG firm is a legally distinct and separate entity and describes itself as such. For more information, see kpmg.com/ca.
For media inquiries:
Sonja Cloutier-Bosworth
National Communications and Media Relations
KPMG in Canada
(416) 777-8175
[email protected]
SOURCE KPMG LLP
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