#Canada #Ottawa #ACDC #Canadian Innovation #Defence Procurement

Advancing Defence Procurement in Canada

On November 3, 2026, the Alliance of Canadian Defence Companies (ACDC) spearheaded a national delegation to Parliament Hill, aiming to push for crucial reforms in the defence procurement sector. This initiative brought together various defence and dual-use firms that are instrumental in enhancing Canada’s military and technological capabilities.

The event was marked by meetings with federal officials and lawmakers where the delegation emphasized the need for improved recognition of Canadian ownership in procurement processes. Despite the multifaceted landscape of defence companies, ranging from innovative tech firms to established manufacturers, a unanimous concern regarding procurement hurdles emerged during discussions. These included challenges in securing contracts post successful military trials, inadequate visibility into procurement strategies, and uncertainties surrounding the future demand for defence requirements.

Dasha Cohen, the executive director of ACDC, highlighted the consistent feedback obtained from nearly 90 Canadian firms via individual consultations and surveys. “These conversations have revealed substantial anxiety regarding access to opportunities and the stability required for growth and investment,” Cohen stated. This first Hill Day was aimed at directly conveying these perspectives to federal decision-makers and laying the groundwork for recommendations that could lead to meaningful reform.

Preliminary findings from ACDC’s member survey indicated a robust desire among defence companies for an environment that fosters greater certainty in defence demands. The survey revealed that 86% of responding organisations would consider hiring more staff, 73% aimed to develop new capabilities, while 67% intended to enhance production and R&D if confidence in future demands was restored.

Strengthening Canadian Industry

One of the pivotal topics addressed was the differentiation between firms operating within Canada and those that are owned and controlled by Canadians. ACDC argued for procurement policies that take into consideration these distinctions—specifically where intellectual property resides and where key decisions are formulated. As defence budgets increase, it becomes paramount to ensure that Canadian public investments bolster a sustainable industrial capacity that aligns with national security priorities.

ACDC also called for a procurement framework that facilitates a graduated approach—beginning with smaller, initial contracts and expanding to larger orders as projects meet critical operational performance benchmarks. They propose that earlier engagement with personnel from the Canadian Armed Forces, alongside clearer timelines and consistent procurement forecasts, would be conducive for firms in developing relevant technologies that meet military specifications, thereby enabling greater production capacity.

Bachar Elzein, the CEO of Reaction Dynamics, voiced a compelling analogy: “Canada cannot claim to be independent in space if every satellite is reliant on foreign-launch services. True sovereignty implies developing capabilities domestically, managing the entire lifecycle from design to implementation without seeking external approval.”

With representatives from various sectors, including autonomous systems, aerospace, marine technologies, and more, the ACDC showcased the diverse capabilities of Canadian defence companies and their readiness to meet the nation’s requirements.

About ACDC

The Alliance of Canadian Defence Companies (ACDC) operates as a national trade association representing roughly 200 businesses across Canada that focus on defence and dual-use applications. Founded by leading figures in the industry, ACDC aims to amplify the collective voice of domestic firms, advocating for policy reforms that enhance Canada’s sovereign defence capacity and support local innovation. By improving access to procurement opportunities, ACDC strives to bolster Canada’s defence ecosystem.

The successful outcomes of this delegation to Parliament Hill could pave the way for reinvigorating Canada’s defence sector, helping not just the companies involved but also enhancing the nation’s overall security framework.