The head of the Canadian Imperial Bank of Commerce (CIBC) has described Canada's push to expand its defence sector as a historic financing initiative that presents a unique opportunity for economic growth. Speaking at a CIBC defence summit, Harry Culham emphasized the urgency of investing in national security and related infrastructure.
A Once-in-a-Generation Opportunity
“Let me be clear: we recognize the urgency of this moment,” Culham said on Wednesday. “This presents a once-in-a-generation opportunity to invest in our economy.” He highlighted that investments would extend beyond traditional defence to include dual-use infrastructure such as airports, seaports, energy networks, and critical roads in the North, as well as advancements in cybersecurity, digital solutions, and artificial intelligence.
Arctic Defence and Economic Growth
Culham noted that prioritizing projects to enhance Arctic defence capabilities not only addresses emerging threats but also fosters conditions for economic growth and social development. Such investments could also benefit Canada's mining sector, as the country produces 10 of the 12 materials NATO designates as critical for defence equipment.
“By investing in these areas, we are not only protecting our institutions, but also positioning Canada as a global leader in technology and intellectual property,” he added.
Government Commitments and Industry Impact
The federal government's fall budget pledged $81.8 billion for defence over five years. The sector currently comprises about 600 companies and 81,200 jobs, contributing over $9.6 billion to Canada's GDP. Additionally, Canada will host the new multinational Defence, Security and Resilience Bank, focused on financing defence projects.
The government aims to dramatically expand defence capacity, adding up to 125,000 jobs over the next decade. Its defence industrial strategy projects more than $500 billion in public and private investments by 2035.
Call for Financial Sector Engagement
Defence Minister David McGuinty, also speaking at the summit, stressed that government investments alone are insufficient. He noted that thousands of Canadian companies are ready to scale and innovate but lack access to capital. “That's where you come in,” he told financial leaders, urging them to think long-term and back Canadian innovation.
McGuinty acknowledged the challenge for banks, given shareholder perspectives, but insisted, “We don't have any choice. We need to move forward now. We need to look out for ourselves.” He called on the financial sector to play a key role in strengthening defence amid geopolitical turmoil.
