The Alliance of Canadian Defence Companies is bringing those proposals to federal officials and parliamentarians on 3 November. Its recommendations draw on consultations with close to 90 firms and a member survey that found businesses willing to expand if they had greater certainty about future Canadian demand.
ACDC wants procurement policy to distinguish between businesses operating in Canada and those that are Canadian-owned and controlled. It says assessments should also consider where intellectual property is held, where key decisions are made and whether critical technologies can be produced and maintained domestically.
The association argues that these factors matter most in areas where Canada needs sovereign capabilities. Companies consulted by ACDC questioned whether current procurement policies adequately recognise those distinctions.
“Over the past several months, we’ve spoken with defence and dual-use companies across Canada, from emerging tech developers to established manufacturers,” said Dasha Cohen, ACDC’s executive director. “Despite their different capabilities and experiences, we’ve heard remarkably consistent concerns about procurement, access to opportunities and the certainty needed to invest and grow.”
Companies described difficulties winning contracts after successful military trials, limited visibility into purchasing decisions and uncertainty about future requirements. ACDC proposes simpler processes for smaller initial contracts, with opportunities for larger orders as technologies meet operational and performance milestones.
Earlier contact with Canadian Armed Forces personnel and clearer purchasing timelines would help companies align development with military needs, the association said. More predictable demand would give them greater confidence to invest in production.
Of 49 companies responding to ACDC’s survey, 86% said greater certainty about Canadian defence demand would prompt them to hire additional employees, while 73% would develop new capabilities. Some 67% would expand production or delivery capacity, and the same proportion would increase research and development.
“Canadian companies are ready to deliver,” said Bachar Elzein, founder and CEO of Reaction Dynamics. “What they need is procurement that rewards proven milestones and sends a predictable demand signal.”
ACDC represents approximately 200 Canadian-owned and controlled defence and dual-use companies. Its delegation includes firms working in autonomous systems, aerospace, marine and space technologies, advanced manufacturing, sensors and cybersecurity.
