Ontario Eyes Significant Defence Contracts as Military Investment Rises

Ontario's Economic Development Minister, Vic Fedeli, is ramping up efforts to attract substantial defence investments as Canada gears up for its largest military acquisitions in decades.

As the navy accelerates its new submarine initiative and Sweden's Saab proposes the assembly of fighter jets domestically, provinces are mobilizing to secure enduring industrial gains and skilled employment opportunities.

Fedeli's recent trip to the TKMS submarine shipyard in Germany, along with plans to visit Hanwha’s facility in South Korea—both contenders for Canada’s submarine deal—highlights Ontario's commitment. The final decision could emerge as early as 2026 and potentially be valued in the billions.

While the majority of submarine maintenance will be conducted along Canada’s coasts, Ontario is a key player with around 300 defence firms engaged in advanced manufacturing and software. Ontario Shipbuilding, previously known as Heddle, is keenly watching for new opportunities.

The province boasts a robust aerospace sector as well, with Bombardier manufacturing Global Eye surveillance aircraft alongside Saab. Ontario is advocating its readiness to participate should Ottawa opt for domestic assembly of Saab’s Gripen jets, as the federal government re-evaluates plans for acquiring additional F-35 aircraft.

Fedeli highlighted Ontario's extensive manufacturing capabilities—from aircraft to microchips—asserting the province's readiness to compete against regions like Quebec, known for its aerospace dominance.

Canada is set to elevate its military expenditure to five percent of GDP in the coming years amid escalating European defence production and global demand, positioning Ontario at the forefront of new supply chains.

Provincial officials are examining possible financial incentives akin to those for electric-vehicle and battery manufacturers to entice defence producers.

Canadian military officials have been visiting international shipyards as part of their evaluation, underscoring the competitive and urgent nature of the procurement landscape.