Defence sector in southwestern Ontario hopeful new military spending comes here
Manufacturer says there are approximately 50 suppliers to defence sector in region
People working in the defence sector in the London area are hopeful new funding to help Canada meet its military spending obligations and adapt relying less on the United States will mean employment and innovation opportunities in the region.
On Monday, Carney announced between $18 billion and $20 billion to boost Canada's military spending to 2 per cent of its gross domestic product by the end of the current fiscal year in March.
Canada is known as a laggard in that realm, especially among NATO allies who have criticised the country for failing to meet the goal, which is agreed upon in the alliance.
"It's a great plan, as long as they execute it," said Mark MacKenzie, the president and CEO of Davwire, a London-based firm that designs components for defence vehicles.
"I'm appreciative of the direction that they're taking. It's overdue."
MacKenzie and many others in the region supply parts to General Dynamics Land Systems (GDLS), the largest plant in the region known for the Light Armoured Vehicle, which are bought by governments around the world.
"We were pleased to hear the announcement by the Prime Minster," wrote GDLS spokesperson Jay Hancock. "General Dynamics Land Systems looks forward to supporting the Government of Canada as they invest in advanced capabilities for the Canadian Armed Forces."
Carney's announcement included a number of changes, including the creation of a new defence policy, and the creation of a dedicated defence procurement agency.
"It's been difficult to work with [the government] over the years. Hopefully it's a lot less red tape and we can get things accomplished a lot quicker," MacKenzie said.
Matthew Quinlan agrees the move is positive, however he's waiting to see how big a boost it will be for the defence sector in southwestern Ontario. As the owner of Quinlan Defence Incorporated, he helps businesses secure defence contracts which have lagged over the years.
"This announcement hopefully rectifies that, and perhaps allows us to grow beyond previous levels," Quinlan said. "In the ground defence business, an ideal build cycle is 1 vehicle per day, and we're not at that currently."
Quinlan said given its previous position, the region is well-poised to ramp up back to where it once was.
"The federal government, just by this spending alone, turns the corner a little bit for some London manufacturers. There's probably no less than 50 in [southwestern Ontario] that will benefit from this news if it does indeed come to fruition."
Better protection for Canadians, and better business for the sector
Heather Pilot is president of Pilot Hill Limited, which organizes a long-standing defence conference in London called Best Defence that brings vendors together. She points to the age of Canada's military equipment and the local talent that exists to bring it up to speed.
"It's very positive on Prime Minister Carney's part for Canadians. We have no protection, we have outdated military equipment, and I don't believe we would last one week if Russia had attacked us instead of Ukraine, for example," she said.
Pilot also said Carney has indicated that the industry would be given a seat at the table where procurement discussions are happening. She says having industry voices in those discussions can prevent the duplication of work and streamline the entire process.
"It's huge," Pilot said. "We need to be quick on our feet. The war in Ukraine has proven that there's companies that have [existing] technologies that could well be used within the within the military."