Manufacturers in Canada's largest automotive hub are forging connections with prime defence contractors as Ottawa increases spending on domestic supply chains. During a visit to the region on Monday, Canada's Minister of National Defence David McGuinty said Windsor-Essex is well-positioned to help make defence one of the county's three largest industrial sectors over the next decade.
Defence Industrial Strategy Prioritizes Domestic Production
Under Canada's new defence industrial strategy, McGuinty emphasized that the first priority is supplying the Canadian Armed Forces with domestically produced equipment. “The world has changed,” he told reporters. “The threat landscape has changed. We can no longer in Canada assume that we are protected by our geography. We have malign actors that are with intentions to do malign things to this country, want to divide democracies, want to weaken democracies.”
McGuinty highlighted the region's deep talent pool, noting that “about half of North America's concentrated expertise in this region has had a huge bearing on the success of the country, the auto sector and beyond. This is the kind of depth of talent we want to pivot to help us implement our defence industrial strategy.”
Local Companies Connect with Prime Contractors
At the Ciociaro Club of Windsor, around 200 representatives from 50 local companies participated in breakout sessions with prime contractors including Boeing, Bombardier, and General Motors Defence to learn about future opportunities. The event aimed to help manufacturers understand the procurement process, obtain certifications for shipping controlled goods, and develop relationships with prime contractors.
Louis Jahn, president of the Canadian Tooling and Machining Association (CTMA), which represents around 250 members mostly in Ontario, said most manufacturers in Windsor-Essex already have the necessary equipment, infrastructure, and skilled workforce to participate in the defence sector. The next step, he added, is for companies to navigate the certification and relationship-building process.
Global Market Opportunities
McGuinty noted that increased domestic spending will also help Canadian companies compete in the rapidly expanding global market, particularly the European Union, which is expected to spend nearly $1 trillion on defence procurement by the end of the decade. “Europe is now in a different mind space,” he said. “It realizes that it's got a real challenge on the Ukrainian front with the Russians, who seem not to be willing to cease and desist.”
Over the last six months, Export Development Canada has financed 80 export deals worth about $1.5 billion in the defence sector where there was previously minimal activity, McGuinty said. He added that opportunities exist in areas such as building ammunition and weapons systems, armoured vehicles, and supplying parts to larger companies.
