Province Targets 43,000 New Jobs Through Long-Term Defence and Manufacturing Growth Plan
The Ontario government has unveiled the framework for its first-ever Ontario Defence Industrial Strategy (ODIS), a 10-year plan aimed at expanding the province’s defence sector, strengthening domestic supply chains and positioning Ontario as a key contributor to allied defence and security initiatives.
The announcement was made Thursday at CANSEC in Ottawa, one of the world’s leading defence and security trade shows hosted by the Canadian Association of Defence and Security Industries.
The provincial government says the strategy is designed to capitalize on growing global defence spending while leveraging Ontario’s strengths in advanced manufacturing, critical minerals, nuclear energy, aerospace, research and technology.
“As Canada and our allies respond to increasing global uncertainty by making record investments in defence and security, Ontario has the world-class workers, manufacturers and critical resources to help protect ourselves and our allies,” said Premier Doug Ford. “Our provincial defence strategy will position Ontario to take advantage of these record investments, contributing to global security, supporting Ontario companies and bringing tens of thousands of good-paying defence jobs to our province.”
According to the province, the strategy could help create up to 43,000 jobs by 2035, contribute $6 billion to Ontario’s economy and generate more than $400 million in annual provincial tax revenue.
Ontario Positions Itself for Expanding Global Defence Market
The framework comes at a time when defence spending is increasing globally amid escalating geopolitical tensions and growing security commitments among NATO allies.
Ontario officials pointed to the federal government’s pledge to invest an additional $81.8 billion over five years in defence initiatives, including Canada’s commitment to meeting NATO’s target of spending five per cent of GDP on defence by 2035.
The province estimates that annual core defence spending in Canada could rise to $150 billion by 2035, while worldwide defence expenditures could reach $6.6 trillion over the same period.
Ontario also highlighted opportunities stemming from Canada’s participation in the Security Action for Europe (SAFE) initiative, which could allow Canadian firms to compete for large-scale European Union defence contracts supported through financing programs worth up to $244 billion.
“With escalating geopolitical tensions driving defence budgets higher worldwide, there is a generational economic opportunity for jurisdictions willing to act quickly to leverage industry strengths,” the government said in the framework announcement.
Ontario currently has more than 300 defence-related firms generating over $5 billion in annual revenue and employing more than 13,000 workers directly.
Four Strategic Pillars Identified
The Ontario Defence Industrial Strategy is built around four central pillars intended to strengthen the province’s long-term defence capabilities and economic competitiveness.
The first pillar focuses on strengthening Ontario’s industrial base to ensure defence and dual-use companies are prepared to benefit from increased domestic and allied spending.
The second aims to position Ontario as a leader in emerging defence technologies and future industries through innovation, research and commercialization.
The third pillar centres on expanding export opportunities and establishing Ontario companies as suppliers of choice for allied governments and defence organizations.
The fourth pillar seeks to build an integrated defence supply chain by leveraging Ontario’s strengths in critical minerals, advanced manufacturing and domestic production capacity.
The province said these initiatives will also be supported by workforce development measures aimed at preparing skilled workers for future defence-sector demand.
“In an increasingly uncertain world, Ontario is proud to stand as a stable, trusted and secure defence partner, ready to deliver on a generational opportunity for Canada and its allies,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By leveraging our integrated supply chains, critical mineral wealth and world-class manufacturing sector, the Ontario Defence Industrial Strategy will serve as a strategic economic tool, further positioning the province at the forefront of the allied defence supply chain.”
Skilled Workforce and Resource Development Central to Strategy
Ontario officials emphasized the province’s existing industrial and educational strengths as key advantages in competing for future defence investment.
The province produces more than 94,000 STEM graduates annually and maintains strong manufacturing capabilities across sectors including aerospace, shipbuilding, armoured vehicles and emerging technologies such as cybersecurity, artificial intelligence and quantum computing.
“As global economic uncertainty continues, our government is securing Ontario’s place as a leader in defence by leveraging our competitive advantages in key sectors through the Ontario Defence Industrial Strategy framework,” said Finance Minister Peter Bethlenfalvy. “This strategy will create up to 43,000 good-paying jobs, build on Ontario’s strengths in manufacturing, technology and our world-class skilled workforce to add $6 billion to the provincial economy and make Ontario more competitive, resilient and self-reliant.”
Energy and mining resources are also expected to play a major role in the strategy, particularly through Ontario’s nuclear sector and critical mineral development projects.
“From the Ring of Fire to our world-leading nuclear sector, Ontario is uniquely positioned to power the future of allied defence and security,” said Energy and Mines Minister Stephen Lecce. “This strategy will propel Ontario as a global leader in democratic supply chains, clean energy and the next generation of defense manufacturing. Ontario’s nuclear advantage and plan to build mines faster is strengthening Canada’s sovereignty at a critical time.”
Consultations to Shape Final Strategy
The province said the framework released at CANSEC will serve as the basis for consultations with municipalities, academic institutions and industry stakeholders over the coming months.
Feedback gathered during those discussions will inform the final version of the strategy, which Ontario plans to release later this year.
Municipal leaders including Ottawa Mayor Mark Sutcliffe and Barrie Mayor Alex Nuttall also voiced support for the initiative, citing opportunities for manufacturing growth, skilled employment and stronger domestic defence capabilities.
The Ontario government says the strategy is intended not only to strengthen economic development, but also to reinforce Canada’s long-term role within allied defence and security supply chains during a period of heightened geopolitical uncertainty.