Prime Minister Mark Carney launched the Defence Investment Agency to centralize and accelerate Canada’s military procurement, aiming to reach 2% of GDP on defence this year or about $63 billion in 2025–26, and to meet a 5% defence investment pledge by 2035.
The government says procurement is fragmented, slow to consult industry, and too complex to match evolving military needs. The new agency consolidates processes, removes duplicative approvals and red tape, and employs specialized acquisitions staff so projects advance faster.
“In a dangerous and divided world… the new agency will bolster our defence industrial capacity, create new careers… Canada’s leadership is… defined by the value of our strength,” Carney said.
The agency’s mandate ties procurement more strategically to domestic industrial benefits, positioning aerospace, shipbuilding, and advanced manufacturing to scale. By leveraging contracts as investments in Canadian workers, companies, and technologies, Ottawa targets new careers and stronger supply chains while equipping the Canadian Armed Forces.
Earlier engagement between the CAF and defence suppliers is a core change. The agency will formalize early operational needs input from the military and obtain realistic industry assessments of timelines, costs, and technological options.
Canada also will more closely mirror partners such as the UK, Australia, and France that already operate dedicated procurement bodies, easing joint purchases and partnerships.
Doug Guzman, most recently Deputy Chair of Royal Bank of Canada and previously an executive at Goldman Sachs, has been appointed CEO. The special operating agency is housed within Public Services and Procurement Canada and overseen by Secretary of State Stephen Fuhr.
“We will bring speed and simplicity to the process of arming our military, while building Canada’s industrial capacity,” Guzman remarked.
The Canadian defence industry currently contributes nearly $10 billion to GDP and supports over 81,000 jobs, according to the Prime Minister’s Office.
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