A quiet race is unfolding, one that could reshape Ontario’s economic landscape. As Ottawa prepares to unleash a wave of major military purchases, the province is aggressively positioning itself to capture the resulting industrial benefits and the high-value jobs they promise.
The stakes are immense. Billions of dollars are on the table, tied to contracts for desperately needed submarines and potentially a new fleet of fighter jets. Ontario’s Economic Development Minister is leading the charge, embarking on a global mission to secure a significant share of this investment for the province.
Just weeks ago, he toured the sprawling TKMS submarine shipyard in Germany, a key contender for Canada’s multi-billion dollar submarine contract. Soon, he’ll travel to South Korea to visit Hanwha, TKMS’s primary rival, intensifying the competition and demonstrating Ontario’s serious intent.
The urgency is palpable. Federal officials are rapidly narrowing the field of submarine suppliers, with a decision anticipated as early as 2026. This isn’t simply about acquiring military hardware; it’s about forging long-term industrial partnerships and building robust domestic supply chains.
Ontario, though not traditionally associated with submarines, boasts a powerful industrial base. Ontario Shipbuilding, along with approximately 300 defence companies specializing in components and software, are poised to play a crucial role. These companies aren’t just suppliers; they’re potential partners in a massive undertaking.
Winning these contracts demands more than just competitive bids. Companies vying for these projects are expected to invest directly in Canada, establishing facilities and expanding local capabilities. Provincial governments are actively involved, working to enhance bids and demonstrate the advantages of choosing Ontario.
The province’s aerospace sector adds another layer to its appeal. Bombardier already collaborates with Saab, assembling advanced surveillance aircraft near Toronto’s Pearson airport. This existing partnership provides a strong foundation for further collaboration.
Ministerial meetings in Sweden with Saab executives focused on a compelling possibility: the construction of a new fighter jet assembly plant within Ontario. This prospect gained traction as Ottawa reconsiders its plans for the F-35, opening the door for Saab’s Gripen jet to enter the competition.
Ontario is making a forceful case, highlighting its established manufacturing prowess – from automobiles and trains to cutting-edge microchips. The message is clear: the province possesses the infrastructure, skilled workforce, and experience to support a major defence manufacturing operation.
Competition will be fierce, particularly from Quebec, a dominant force in Canadian aerospace. However, Ontario is determined to secure its share of the burgeoning defence budget, which is projected to reach five per cent of Canada’s GDP – a level unseen in decades.
The global landscape is shifting. Canada’s potential involvement in the “ReArm Europe” initiative, coupled with increased defence spending in Germany, presents a unique opportunity. Ontario is determined to be at the forefront of these developments, actively courting European and international defence companies.
Experts emphasize the importance of facilitating partnerships between foreign companies and Canadian firms. The province is prepared to offer support, drawing on successful models used to attract investment in the electric vehicle and battery industries.
High-level delegations from Ottawa are already on the ground, visiting shipyards and engaging with key players. The pace is quickening, and the stakes are higher than ever. Ontario is not simply observing this transformation; it’s actively shaping it.
The coming months will be critical. As decisions are made, Ontario’s proactive approach and robust industrial base could position it as a central hub for Canada’s revitalized defence industry, securing long-term economic benefits and creating thousands of well-paying jobs.
