Vanguard Magazine

F or many years AIAC and its members have called on federal governments to work with the industry on an aerospace and defence industrial strategy. As global tensions continue to rise and the Arctic becomes increasingly contested, in- action is no longer an option. Canada, having just gone through the 2025 federal election, showed that all po- litical parties are aligned on the need to increase funding for the Canadian Armed Forces and for a corresponding strategy to ensure the Canadian defence industrial base is strengthened to create capacity and the high-skill, high-paying jobs. Canada's new Prime Minister, Mark Car- ney, has taken very encouraging steps to increase defence spending this fiscal year to two per cent of GDP, which we have applauded. In June, I was pleased to join industry and government colleagues, in- cluding Canada's Minister of Defence, the Honourable David McGuinty and Secre- tary of State for Defence Procurement, the Honourable Stephen Fuhr, in the Hague at the NATO Industry Summit where Canada endorsed NATO's new five per cent of GDP by 2025 commitment. This, paired with the security and defence partnership agree- ment with the EU, are significant steps for Canada – signalling to the world that we are serious about strengthening our national defence, supporting NATO, and reinforc- ing our sovereignty. Industry stands ready to support and partner the government as it moves forward implementing this ambi- tious and necessary agenda. NATO's five per cent commitment rep- resents a generational step change and opportunity. By directing 3.5 per cent of GDP toward core defence requirements and 1.5 per cent to innovation, infrastruc- ture and resilience Canada can better align defence spending with homegrown capa- bilities and leverage our world-class aero- space sector as a strategic engine for both the economy and national security. Contributing more than $30 billion to our GDP annually, while exporting more than half its output, Canada's aerospace sector is a key driver of innovation and trade. In fact, Canada is one of a select few countries around the world that can de- sign, develop, manufacture, maintain and certify different types of aircraft from nose to tail – this supports well over 220,000 jobs and drives economic opportunity. The government's commitment to de- velop a defence and aerospace industrial strategies are needed to provide the long- term demand signals for industry to en- courage investments and leverage our existing strengths for both the civil and defense aerospace sectors. But as we now move from announce- ment to implementation – clear objectives, sustained investment, and true partnership with industry will be critical. As our NATO allies scale up their defence industries and reduce reliance on foreign suppliers, Cana- da must do the same by focusing on aero- space industrial capacity and key capabilities that can strengthen our national defence, grow our economy and open the door for more export opportunities - including new partnerships including the recently signed ReArm Europe plan. We'll be taking forward that message at the Aerospace Defence and Security Expo (ADSE) 2025, taking place August 7-8 in Abbotsford British Columbia and our Canadian Aerospace Summit taking place in Ottawa October 28-29. ADSE offers a rare forum to discuss key issues including procurement reform, highlight emerging technologies, and new forge partnerships that will help translate defence commit- ments into tangible capability. Aerospace is not just a strategic sector, but a national priority. As Canada steps up its defence investment, ADSE 2025 is our op- portunity to turn conversations into action and ensure our aerospace industry remains both a national asset and a global leader. About ADSE Presented by the Aerospace Industries As- sociation of Canada, ADSE is Canada's premier aerospace, defence, and security event - bringing together industry and government leaders as well key decision makers from across the aerospace sector. Learn more about ADSE and how you can get involved: https://aiac.ca/ events/aerospace-defence-and-security- expo-2025/ Mike Mueller is President and CEO of Aero- space Industries Association of Canada (AIAC). Prior to joining AIAC, Mike held senior positions within the Canadian gov- ernment including at Employment and Social Development Canada, Public Safety Canada, Foreign Affairs and Internation- al Trade, and Canada's Treasury Board. Mike also serves as Vice-Chair & Financial Controller for the International Coordinat- ing Council of Aerospace Industries Asso- ciations. T H E LA S T W O R D B Y M I K E M U E L L E R A STRATEGIC DRIVER OF NATIONAL DEFENCE AND SECURITY CANADA'S AEROSPACE INDUSTRY: CF-188 Hornet Photo: Bernie Condon 30 JUNE/JULY 2025 www.vanguardcanada.com

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