Ontario Unveils Framework for Defence Industrial Strategy

On May 28, 2026 at CANSEC, a leading global tradeshow hosted by the Canadian Association of Defence and Security Industries, the Ontario government unveiled its framework for the Ontario Defence Industrial Strategy (ODIS), a 10-year strategy dedicated to growing the province’s defence industry and positioning its companies and workers for long-term success. The framework highlights Ontario’s strengths and competitive advantage in research and development, critical minerals, nuclear energy, aeronautics, manufacturing and technology, as well as the province’s world-class workforce. As Canada and its allied partners prepare to make generational investments into national security projects, these strengths position Ontario to drive industrial development, create good-paying jobs and reinforce the province’s role as a trusted partner in domestic and allied defence supply chains.

“As Canada and our allies respond to increasing global uncertainty by making record investments in defence and security, Ontario has the world-class workers, manufacturers and critical resources to help protect ourselves and our allies,” said Premier Doug Ford. “Our provincial defence strategy will position Ontario to take advantage of these record investments, contributing to global security, supporting Ontario companies and bringing tens of thousands of good-paying defence jobs to our province.”

With escalating geopolitical tensions driving defence budgets higher worldwide, there is a generational economic opportunity for jurisdictions willing to act quickly to leverage industry strengths. The federal government has committed to invest an additional $81.8 billion over five years to support its defence commitments, including meeting the NATO pledge of investing five per cent of GDP in defence by 2035. This could bring annual core defence spending in Canada alone to $150 billion by 2035, while annual global defence spending could reach $6.6 trillion in the same period, driving investments in defence technology, defence infrastructure, research and more. As a result of Canada’s membership in the Security Action for Europe (SAFE) initiative, a key pillar of Readiness 2030, Canadian companies will also be allowed to bid on large-scale defence projects that will be supported by loans to EU member states of up to $244 billion.

Ontario brings decades of experience and a robust defence sector that can support these goals, including 300 defence firms that directly employ over 13,000 workers. Building on the provincial government’s strategic investments and actions to date, including accelerating responsible resource development and reinforcing domestic supply chains, the ODIS framework will capitalize on emerging opportunities, while laying the foundation for longer-term initiatives that will be launched later this year. By 2035, these opportunities could help create 43,000 good-paying jobs, contribute $6 billion to the provincial economy and generate over $400 million in annual provincial tax revenue.

The Ontario Defence Industrial Strategy, rooted in four pillars, outlines how Ontario will seize this generational opportunity for workers and businesses, serving as the foundation for long-term growth in the defence sector. This includes:

• Strengthening the province’s industrial base: Ensure Ontario’s defence and dual-use firms are ready to capture value from increased federal and allied spending.
• Owning tomorrow’s frontier: Make Ontario the place where future industries and technologies are built, scaled and brought to market, enabling firms to compete in an evolving defence landscape.
• Expanding export reach: Position Ontario as a supplier of choice to the federal government and allies for defence and dual-use technology and equipment.
• Building an integrated supply chain: Capitalize on Ontario’s strength in critical minerals and advanced manufacturing to build a resilient, vertically integrated defence supply chain.

These four pillars will be underpinned by targeted measures that will help build the skilled, industry-ready workforce needed to deliver on the strategy.

“In an increasingly uncertain world, Ontario is proud to stand as a stable, trusted and secure defence partner, ready to deliver on a generational opportunity for Canada and its allies,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By leveraging our integrated supply chains, critical mineral wealth and world-class manufacturing sector, the Ontario Defence Industrial Strategy will serve as a strategic economic tool, further positioning the province at the forefront of the allied defence supply chain.”

The framework will serve as the foundation for consultations with municipalities, academia and industry stakeholders over the coming weeks and months. Feedback received during consultations will be used to inform the strategy’s development, ensuring that the final pathway is responsive to emerging trends and positions the province to accurately capture tomorrow’s defence opportunities.

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