Canadian Defence and Tech Firms Establish Ottawa-Based Trade Association
A new trade association representing exclusively Canadian-owned and -controlled defence and technology companies has been launched in Ottawa. The Alliance of Canadian Defence Companies (ACDC) aims to ensure domestic industry has a strong voice in federal spending decisions as defence budgets soar nationwide.
Government Strategy and Industry Response
Prime Minister Mark Carney announced his government's defence industrial strategy on February 17, pledging to inject billions of dollars into small- and medium-sized Canadian businesses. Carney has committed to ensuring Canadian firms receive the majority of defence contracts issued by the federal government. He has expressed concern that currently up to 75 percent of Canada's defence capital is used to purchase U.S.-built equipment.
Eliot Pence, founder and CEO of Dominion Dynamics in Ottawa and co-chair of the new association, emphasized the importance of this initiative. "What this association gives is a purely Canadian voice," Pence stated. He co-chairs ACDC alongside Paul Ziade, CEO of North Vector Dynamics in Calgary.
Pence noted that federal efforts to increase defence spending would be largely ineffective if they did not result in enhanced capabilities for Canadian-owned and -controlled companies. The association will provide federal officials with crucial insights into which firms are genuinely Canadian, helping to direct investments appropriately.
Association Goals and Membership Growth
The Alliance of Canadian Defence Companies is an industry-led trade association and lobbying group focused on:
- Strengthening coordination among Canadian defence firms
- Providing a unified Canadian industry voice on policy matters
- Advocating for procurement reform
- Promoting industrial development within Canada
Initially, twenty-three companies joined as founding members, but interest has surged dramatically. On Tuesday, an additional fifty companies signed on, and Pence anticipates reaching one hundred new members by the end of the week. "I see this potentially as a 500-member association," he added optimistically.
Relationship with Existing Industry Groups
The defence industry is currently represented primarily by the Canadian Association of Defence and Security Industries (CADSI), also based in Ottawa, which represents approximately 900 firms. However, CADSI has faced criticism in the past for allegedly focusing too much on the interests of Canadian subsidiaries of American and European corporations. CADSI did not respond to requests for comment regarding the new association.
Pence clarified that ACDC is not intended to challenge CADSI. "I see them as complementary," he explained. "I don't see them as combative." The new association specifically represents wholly Canadian-owned defence builders and suppliers, distinguishing it from organizations that include foreign subsidiaries.
Canada's defence industry comprises hundreds of companies, but many, such as Lockheed Martin Canada, are subsidiaries of large American corporations. ACDC aims to highlight and support truly Canadian enterprises in this sector.
