Preserving capacity, General Tom Lawson, Chief of the Defence Staff, Keys to Canadian SAR
Issue link: http://vanguardcanada.uberflip.com/i/1543133
W hen Canada launched the Canadian Patrol Subma- rine Project (CPSP), the initial debate understand- ably focused on technical naval capabilities such as range, endurance, weapons and combat management systems, and performance in demanding operat- ing environments. Increasingly, however, the program is being assessed through a broader lens: whether major defence pro- curement can deliver sovereign industrial capacity and contribute to Canada's wider nation-building objectives. Hanwha's approach to CPSP reflects that shift more than others. Rather than treat- ing the program as a transactional subma- rine acquisition, Hanwha has positioned CPSP as a strategic gateway for long-term industrial participation in Canada, linking defence sustainment with a broader port- folio of investment, trade, and industrial cooperation across multiple sectors. The employment estimate reflects an interim assessment based on a defined portfolio of more than 20 Hanwha-linked industrial programs currently planned, or under development or consideration. These programs span defence sustain- ment and maintenance, repair and over- haul activities, submarine-related logistics and infrastructure, shipyard co-operation, domestic steel and materials, equipment localization, advanced manufacturing, aerospace and aviation systems, digital and AI-enabled solutions, satellite communi- cations, joint R&D initiatives, and venture and SME investment in Canadian compa- nies. Together, they form the analytical ba- sis for the job-years estimate at this stage, with further analysis expected as individual programs advance in scope and execution. What the numbers show According to KPMG analysis, Hanwha- linked industrial cooperation related to CPSP is forecast to support approximately 15,000 average annual jobs over the pro- gram period. Across a 15-year period from 2026 to 2040, this equates to approxi- mately 200,000 job-years, encompassing direct, indirect, and induced employment. Employment results are expressed in job- years, representing the equivalent of one full-time worker performing a year's worth of work over the 2026–2040 period. The employment impact is driven by a broad, multi-sector industrial base span- ning shipyard cooperation, domestic steel production, infrastructure, equipment lo- calization, MRO, R&D, advanced manu- facturing, and digital and satellite-enabled systems. This breadth of industrial activity enables sustained employment beyond a single defence platform and anchors CPSP within a long-term Canadian industrial ecosystem. Where the employment comes from The analysis highlights that employment effects are diversified across the Canadian economy. Large, long-running industrial and infrastructure projects support steady workforces over many years. Alongside this sit manufacturing and industrial activities such as equipment assembly, facility up- grades, maintenance operations, and logis- tics services, generating sustained demand for skilled technicians, engineers, and pro- duction workers across the value chain. There is also a growing share of employ- ment tied to advanced technology and in- novation. Demand for digital engineering, AI-enabled systems, satellite communica- tions, and applied research creates high- skill roles that complement traditional manufacturing and help keep Canada's in- dustrial base competitive. Why these jobs last This employment profile is driven by long- term operational activity rather than short- term construction, underpinned by the development of a through-life submarine sustainment and support ecosystem an- chored in Canada. CPSP is structured as a multi-decade industrial program, span- ning initial construction through decades of in-service support, maintenance, and upgrades. As a result, many of the jobs as- sessed in the KPMG analysis extend well into the 2030s and 2040s. "Our commitment in Canada is centred on long-term employment and industrial growth," said Hee-Cheol Kim, President and CEO of Hanwha Ocean. "By invest- ing across multiple sectors and working with Canadian partners nationwide, we are helping to build industrial capability that stays in Canada for decades." "Our commitment in Canada is centred on long-term employment and industrial growth, by investing across multiple sectors and working with Canadian partners nationwide, we are helping to build industrial capability that stays in Canada for decades." — Hee-Cheol Kim, President and CEO of Hanwha Ocean Sponsored Content PERSPECTIVE WHAT THE CANADIAN PATROL SUBMARINE PROJECT MEANS FOR CANADA'S INDUSTRIAL BASE 16 FEBRUARY/MARCH 2026 www.vanguardcanada.com