Carney Strategy for Defense Industry Pledges 125,000 Jobs and Major Policy Shifts

Prime Minister Mark Carney unveils a new defense industrial strategy to create 125,000 jobs and prioritize Canadian suppliers over foreign military markets.

By: AXL Media

Published: Feb 17, 2026, 5:10 AM EST

Source: Information for this report was sourced from The Hamilton Spectator/thespec

The New Build Partner Buy Procurement Framework

The federal government is shifting its approach to military equipment through a new "Build Partner Buy" framework. This policy establishes domestic production as the primary option for outfitting the Canadian Armed Forces. Under the new guidelines: the government aims to ensure that 70 percent of all defense contract value is awarded to Canadian firms within the next ten years. This represents a significant departure from current trends: where approximately 75 percent of Canada’s capital defense spending is directed toward the United States.

Job Creation Targets and Economic Impact

A central pillar of the strategy is the massive expansion of the domestic defense workforce. The Carney administration projects that these policy changes will generate 125,000 new jobs by the year 2035. This growth would more than double the current industry size: which currently employs approximately 81,000 Canadians. By focusing on "Canadian champions" and local manufacturing: the government intends to turn defense spending into a primary driver of national economic growth and industrial stability.

Focusing on Sovereign Capabilities and the Arctic

The strategy identifies specific "sovereign capabilities" that Canada must maintain internally to protect its national interests: particularly in the North. These include aerospace technologies: uncrewed autonomous systems: and specialized shipbuilding for Arctic environments. By designating certain domestic companies as national champions: Ottawa plans to provide the support necessary for these firms to compete globally while securing critical intellectual property within Canadian borders. This focus is intended to ensure that Canada can maintain and operate its own military assets without total dependence on foreign supply chains.