Funding Aims to Protect Aerospace Jobs and Help Ontario Companies Compete in Global Defense Markets
Ontario is investing nearly $2.6 million to strengthen its aerospace and defense industries, supporting initiatives designed to protect workers, improve supply chain resilience, and help businesses compete for expanding defense contracts. The announcement was made on July 20, 2026, during the Farnborough International Airshow in England, one of the world’s largest aerospace and defense exhibitions.
The investment comes as Canada and its allies increase defense spending amid shifting global security priorities and ongoing trade uncertainties. Ontario officials say the funding will help position the province’s aerospace sector for long-term growth while reducing vulnerabilities in critical supply chains.
Funding Supports Broader Aerospace and Defense Initiative
The Ontario government is providing the funding through its Trade-Impacted Communities Program (TICP). The grant has been awarded to Downsview Aerospace Innovation & Research (DAIR), a nonprofit research and innovation consortium representing Ontario’s aerospace ecosystem at this year’s airshow.
The provincial contribution will support a broader $3.2 million initiative focused on helping Ontario’s aerospace and defense industries adapt to global trade disruptions, strengthen manufacturing capabilities, and prepare businesses for new defense opportunities.
“As Canada and its allies make generational investments in the aerospace and defence sectors, Ontario stands ready to seize this once-in-a-lifetime opportunity and unlock new partnerships for our highly-skilled workforce,” said Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade.
“Through the Trade-Impacted Communities Program, our government is proud to support Downsview Aerospace Innovation & Research’s initiatives, which will further position Ontario companies at the forefront of global security projects while safeguarding our economic competitiveness.”
Key Programs Receiving Support
Founded in 2020, DAIR brings together businesses, universities, and research organizations across Ontario to advance aerospace innovation and strengthen Canada’s position in the global aerospace industry.
The funding will expand several major initiatives, including:
- The DAIR Green Fund, which supports collaborative research and development of new aerospace technologies and capabilities.
- The Supplier Development Initiative, which helps small and medium-sized businesses improve technology, manufacturing operations, workforce skills, and business strategy.
- The Defence Readiness Program, designed to help companies meet the standards required to compete for defense contracts and participate in secure international supply chains.
The project also aligns with Ontario’s Defence Industrial Strategy, which aims to prepare more domestic companies to pursue Canadian and allied defense procurement opportunities.
DAIR Says Investment Will Improve Industry Competitiveness
DAIR officials said the funding will strengthen Ontario’s aerospace and defense ecosystem while helping businesses manage the challenges created by an increasingly uncertain global economy.
“The Government of Ontario has, and continues to be, a valued partner to DAIR as we work to strengthen the province’s aerospace and defence sector,” said Phil Arthurs, Executive Director of Downsview Aerospace Innovation & Research.
“This investment through the Trade-Impacted Communities Program will help DAIR support Ontario SMEs in becoming more innovative, competitive, and resilient by advancing collaborative R&D, strengthening manufacturing capabilities, enhancing defence readiness, and helping to mitigate the impacts of an increasingly uncertain global environment. We appreciate Ontario’s confidence in DAIR and look forward to delivering programs that support the organizations and partnerships that are advancing and growing our sector.”
Trade Program Focuses on Economic Resilience
The Trade-Impacted Communities Program was introduced as part of Ontario’s nearly $30 billion tariff relief and economic support plan. The program is intended to help industries and communities that have been disproportionately affected by global trade disruptions.
Its broader objective is to diversify supply chains, encourage new export opportunities, attract investment, and reduce dependence on the U.S. market by expanding access to international customers.
Ontario officials said the government remains focused on supporting businesses through targeted funding, regulatory improvements, and investments that strengthen the province’s long-term economic competitiveness amid ongoing global uncertainty.
Ontario’s Aerospace and Defense Industry
Ontario’s aerospace industry remains a significant part of the province’s advanced manufacturing economy.
According to the provincial government:
- The aerospace sector employs more than 25,000 workers across over 200 companies while supporting nearly 24,000 indirect jobs.
- Ontario’s defense industry includes capabilities in armored vehicles, aerospace, shipbuilding, advanced manufacturing, and dual-use technologies that support Canada’s national security objectives.
- The $40 million Trade-Impacted Communities Program works alongside other provincial initiatives, including the Ontario Together Trade Fund, the Protect Ontario Financing Program, and the Ontario Made Manufacturing Investment Tax Credit.
The government said it has received more than 80 applications from communities across Ontario since launching the program and continues to evaluate additional projects.
Officials Highlight Ontario’s Aerospace Legacy
Michael Kerzner, MPP for York Centre, emphasized the historical significance of the Downsview aerospace campus.
“As the local MPP for York Centre, I am so proud that our government led by Premier Ford has reimaged the future of our aerospace and defense sector here in Ontario, by supporting the DAIR initiative. The Downsview Aerospace Innovation and Research (DAIR) consortium is located in a historic location the site where Canadian aviation was born. The site where the De Havilland Tiger Moth and Mosquito was built. The site where Bombardier built the global express and Q-400. It is a location rich in history and rich in future possibilities.”
Bernard Derible, Ontario Military Defence Representative, said the investment builds on the province’s longstanding leadership in aerospace and defense.
“Today, we are building on Ontario’s decades of leadership in our world-class defence and aerospace ecosystem. By supporting DAIR, we are reinforcing the success of Ontario companies by enabling new partnerships that bolster supply chains, enhance readiness, and accelerate next-generation technologies.”
Looking Ahead
As defense spending increases across Canada and allied nations, Ontario is positioning its aerospace and defense industries to pursue new opportunities while strengthening domestic manufacturing and supply chain resilience. Provincial officials say investments such as this are intended to help businesses remain competitive in an evolving global market while supporting skilled jobs and long-term economic growth.