Canada’s new government has announced the creation of the Defence Investment Agency to streamline procurement, accelerate defence projects, and strengthen the country’s military and industrial capacity.
Prime Minister Mark Carney said the agency will ensure members of the Canadian Armed Forces have the equipment they need when they need it. “In a dangerous and divided world, Canada’s new government is ensuring the Canadian Armed Forces get the equipment they need, when they need it,” Carney said. “The new agency will bolster our defence industrial capacity, create new careers, and ensure that in this new era, Canada’s leadership is not defined by the strength of our values, but also by the value of our strength.”
The Defence Investment Agency will consolidate procurement processes, remove duplicative approvals, and provide greater clarity and certainty for industry. It will also tie defence procurement to domestic industrial benefits, creating new careers and supporting innovation in aerospace, shipbuilding, and advanced manufacturing. The agency will prioritize early engagement between the military and industry, helping Canada anticipate future needs and build capacity quickly.
The agency will align Canada with international partners including the United Kingdom, Australia, and France, supporting joint defence purchases and multilateral efforts like the European Union’s Readiness 2030 plan. Canada aims to reach 2 per cent of GDP on defence spending in 2025 and meet NATO’s five per cent Defence Investment Pledge by 2035.
Doug Guzman has been named chief executive officer of the new agency. Guzman, formerly deputy chair of the Royal Bank of Canada, has decades of experience in investment and finance, including leadership roles at RBC and Goldman Sachs.
Other government officials highlighted the agency’s potential to accelerate timelines and strengthen partnerships. Stephen Fuhr, secretary of state for defence procurement, said the agency “will streamline procurements, unlock opportunities for Canadian industry and workers, and ensure our military is prepared to defend our sovereignty.” Joël Lightbound, minister of government transformation, public works and procurement, said it will “drive results – accelerating timelines, strengthening partnerships, and delivering better outcomes for both our Armed Forces and our economy.”
The Defence Investment Agency will operate within Public Services and Procurement Canada and focus initially on standing up the organisation, deploying integrated procurement teams, and advancing a first wave of high-priority defence procurements.
Canada’s defence industry contributes nearly $10 billion to GDP and supports more than 81,000 jobs. Officials say the agency will help modernize Canada’s military, strengthen industrial capacity, and reinforce the country’s role as a reliable international partner.
