Vanguard Magazine

22 APRIL/MAY 2026 www.vanguardcanada.com Sponsored Content P E R S P E C T I V E an evolving industrial architecture. Accel- eration is the objective, but speed without clear decision rights and ownership intro- duces risk and invites delays. Building na- tional champions must be balanced with ecosystem resilience, recognizing SMEs' vital roles across advanced manufacturing, software, and dual-use tech. Leaders need flexibility in investments and partnerships, policy ambition should align with legal and fiscal realities to avoid gaps that create execution risk. Finally, procurement and sustainment pathways must enable rapid integration of emerging technologies, and teams should assess whether systems are ready to adopt and scale them. Whether Canada mobilizes around this new strategy for sovereign strength and the future of industry will come down to how quickly ambition is translated into aligned decisions, clear accountability, and execution. Success depends on balancing speed with governance. All parties must prepare to come to the table to address evolution in policy, market capacity, and system readiness. Disclaimer and Copyright This publication contains general informa- tion only and should not be used as a basis for any decision or action that may affect you or your business. Deloitte shall not be re- sponsible for any loss sustained by any person who relies on this publication. Canada's defence procurement system has long been constrained by fragmented au- thorities that create duplication and delays in delivering capability. The Defence Invest- ment Agency establishes a single point of accountability to accelerate timelines for ac- quisition of critical military equipment and capability. If governance is well designed, this could materially reduce cycle times and restore confidence in industry. The strategy also signals a shift toward strengthening sovereign industrial capacity by prioritiz- ing domestic production, partnerships, and supply chains - this in response to histori- cal underinvestment, global consolidation, and vulnerabilities created by reliance on foreign-owned suppliers. These shifts will reshape market dynam- ics and require coordination across govern- ment, industry, and regions. In his speech at The World Economic Forum 2026 in Davos, Prime Minister Carney stated that Canada has "a recognition of what's happening and a determination to act accordingly. We understand that this rupture calls for more than adaptation." The first steps in Canada's defence indus- trial strategy are doing exactly that: moving away from pure open competition in select cases introduces policy considerations that will take time to stabilize and will demand legislative alignment. Defence investment is being positioned as a national priority and driver of economic growth and resilience. Government must manage acceleration while maintaining oversight. National and international OEMs must reassess foot- print and partnerships. Canadian firms and SMEs must determine how to scale within "Discipline and a willingness to accept policy risk in implementation will be paramount. The stakes extend beyond procurement efficiency to supply chain assurance, economic outcomes, industrial sovereignty, and Canada's ability to sustain capability in a contested geopolitical environment." — Darren Hawco, Deloitte Canada Defence Executive Advisor C anada's new defence industrial strategy signals a structural shift in how the country pro- cures, partners, and builds for sovereign capability. The ques- tion is, how quickly can the system adapt while preserving accountability and opera- tional readiness? Given Canada achieved NATO's 2% of GDP defence spending target in the 2025/2026 fiscal year, significant mo- mentum will follow to deliver the capa- bilities for national defence and collective security. CAN WE MAINTAIN MOMENTUM ON A SOVEREIGN STRATEGY FOR FUTURE INDUSTRIAL STRENGTH? CANADA'S DEFENCE INVESTMENT: "Canada's new defence industrial strategy signals the most significant shift in defence procurement and industrial policy in decade. Its success now hinges on how quickly decision- making, incentives, and execution come together to support delivery." — Gerry Faustino, Deloitte Canada Defence Industrial Leader

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