Canada’s New Defence Industrial Strategy: What Business Needs to Know – Cassells

February 17, 2026

The federal government of Canada has launched a sweeping new Defence Industrial Strategy (DIS or Strategy) designed to modernize defence procurement, expand Canada’s defence industrial base, and strengthen national self‑reliance. The Strategy also aims to enhance national security by ensuring the Canadian Armed Forces have the resources and capabilities they need. This provides a significant opportunity for Canadian industries that are able to align themselves to deliver on the Strategy.

Backed by the Canada Strong November 2025 Budget, which allocates $81.8 billion in new defence spending along with additional multi‑billion‑dollar investments in infrastructure and innovation, the DIS represents a generational pivot toward strengthened sovereign capability, accelerated procurement, and domestic industrial growth.

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