Ottawa is set to embark on an ambitious plan to double its defense exports and create a staggering 125,000 jobs over the next decade, as part of its new defense industrial strategy. This strategy promises to revolutionize Canada's defense sector, but it's not without its controversies and questions. The federal government aims to buy Canadian, reduce bureaucratic hurdles, and rearm the country, while also identifying key players in the defense industry. However, the question remains: how will this strategy impact Canadian businesses, and will it be enough to boost the economy as intended? The strategy's release was initially delayed due to the mass shooting in Tumbler Ridge, BC, but now, with the federal government allocating $81.8 billion for defense over five years, the stakes are high. By 2035, defense spending is projected to reach 5% of GDP, with significant investments in procurement, infrastructure, and downstream economic activity. But is this enough to address supply chain vulnerabilities, as highlighted by the Russian invasion of Ukraine and the COVID-19 pandemic? And what does this mean for Canada's NATO pledge and its budgetary deficit? As the strategy unfolds, it's clear that the defense sector will undergo significant changes, but the real test will be whether these plans translate into tangible economic benefits for Canada. Will businesses expand into this sector, and will the government's promises become a reality? The answers lie in the details of this strategy, and the coming years will reveal whether Canada's defense industrial strategy is a success or a missed opportunity.
