What is Canada’s Build at Home strategy?

It is a procurement shift that places Canadian suppliers first. Ottawa targets 70% of awards for domestic firms, a 50% export boost, and 125,000 jobs by 2035, backed by C$6.6B within a C$81.8B plan. The goal is reliable supply, faster delivery, and export ready products.

How does this relate to NATO defence spending?

The plan supports Canada’s effort to improve readiness while addressing NATO defence spending expectations. By building capacity at home, Ottawa can convert budget lines into domestic output and exports. It also reduces import risk, which helps sustain programs even as alliance debates shift timelines.

What does it mean for foreign defence primes in Canada?

They may need higher local content, joint ventures, and technology transfer to remain competitive. Firms that localize production and support Canadian jobs can still win. Those that rely on import heavy bids risk lower scores in future competitions as domestic first criteria take hold.

How can retail investors gain exposure to this theme?

Focus on TSX listed aerospace, munitions, sensors, and space suppliers with owned IP, strong certifications, and a record of on time delivery. Review revenue mix in Canada, export pipelines, and RFP visibility. Avoid concentration risk, and track procurement calendars, permits, and currency exposure before sizing positions.

Law and Government

February 16: Canada Defence ‘Build at Home’ Plan Targets 70% Local

ByDanny Kontos February 16, 2026

Canada’s new canada defence industrial str puts domestic firms first. Ottawa targets 70% of contracts for Canadian suppliers, a 50% export boost, and 125,000 jobs by 2035, backed by C$6.6B within a C$81.8B plan. For investors, that signals steady order flow for aerospace, munitions, sensors, and space. It also raises policy risk for foreign primes. We explain how the Build at Home strategy shapes procurement, who could benefit, and what to watch as NATO defence spending pressures rise.