CEC Opinion Piece: Canada's Rearmament is More Than a Procurement Story – It's a Defining Opportunity for UK-Canadian Defence Collaboration

Canada's defence landscape is changing at a pace few would have predicted only a couple of years ago.

Faced with evolving geopolitical realities, growing Arctic security challenges and renewed NATO commitments, Ottawa has embarked on one of the most significant defence modernisation programmes in its history. While much of the attention naturally falls on major platform acquisitions, I believe the bigger story is about industrial collaboration—and the opportunity this creates for UK and Canadian SMEs.

Recent decisions demonstrate the scale of Canada's ambition. The selection of Germany's TKMS as the preferred supplier for Canada's future submarine fleet marks the country's largest defence procurement programme to date and represents a generational investment in sovereign capability and Arctic operations. At the same time, discussions continue around Canada's future combat air capability, with renewed interest in Saab's Gripen alongside the existing F-35 programme, reflecting a broader desire to diversify strategic partnerships while maintaining operational interoperability with NATO allies. Canada's wider commitment to substantially increasing defence spending reinforces that this is not a short-term procurement cycle but the beginning of sustained investment across land, sea, air, cyber and space capabilities.

For UK industry, this presents a genuine opportunity.

The UK and Canada already enjoy one of the closest defence relationships in the world through NATO, Five Eyes and decades of operational cooperation. The industrial relationship should now evolve at the same pace.

Whilst prime contractors will naturally dominate the headlines, successful defence programmes increasingly rely upon resilient supply chains, specialist technology providers and agile SMEs delivering innovation in areas such as advanced manufacturing, autonomous systems, AI, cyber resilience, communications, electronic warfare, training and sustainment.

This is where collaboration becomes particularly interesting.

Canadian procurement increasingly seeks long-term industrial participation rather than simply buying equipment. Industrial and Technological Benefits (ITB) policies are designed to ensure investment flows back into the Canadian economy, creating jobs, skills and domestic capability. For overseas companies, these requirements can sometimes be viewed as barriers to entry. I would argue they should instead be seen as catalysts for partnership.

The most successful UK companies will not approach Canada simply as an export market. They will build relationships, identify complementary Canadian partners and invest in collaborative delivery models that satisfy industrial participation requirements whilst creating long-term commercial value on both sides of the Atlantic.

Equally, Canadian SMEs looking towards Europe can leverage UK partnerships as a gateway into wider NATO and European defence markets. With increasing emphasis on supply chain resilience and trusted industrial ecosystems, collaborative ventures are becoming commercially attractive as well as strategically necessary.

This is precisely where organisations that understand both markets have an increasingly important role to play.

The Western Canada Defence Industries Association (WCDIA) has spent many years developing a strong ecosystem of innovative Canadian defence companies, creating valuable connections between industry, government and international partners. Its focus on helping SMEs engage with major programmes aligns perfectly with the opportunities now emerging from Canada's expanding procurement agenda.

Similarly, CEC Global Communications has built its reputation by helping defence and security organisations navigate international markets, connect businesses across borders and facilitate meaningful engagement between government, industry and investors. As programmes become increasingly multinational, organisations capable of bridging these relationships will become even more valuable.

There is another important consideration.

Historically, offset obligations have sometimes been perceived as administrative hurdles. Increasingly, however, governments are looking beyond traditional offsets towards genuine industrial collaboration, technology transfer, skills development and innovation partnerships. Companies that embrace this mindset early—rather than treating industrial participation as a compliance exercise—will almost certainly find themselves better positioned for future opportunities.

The next decade is unlikely to be defined by individual platform competitions alone. Success will increasingly depend upon integrated supply chains, collaborative innovation and trusted international partnerships.

For UK SMEs, Canada should no longer be viewed simply as another export destination. It is becoming a strategic partner with complementary strengths, shared security priorities and a growing appetite for innovation.

Likewise, Canadian companies should recognise that the UK offers more than access to a single market. It provides a gateway into broader European collaboration, deep defence expertise and opportunities across programmes such as AUKUS Pillar II, advanced digital capability, maritime technologies and next-generation aerospace.

The UK-Canada defence relationship has always been strong. What is changing is the scale of commercial opportunity.

Those organisations that build partnerships now, understand industrial participation requirements and invest in long-term collaboration rather than transactional business development will be best placed to benefit.

In my view, Canada's rearmament is not simply about replacing ageing equipment. It represents the creation of a new transatlantic industrial ecosystem—and one where UK and Canadian SMEs have every opportunity to play a defining role.

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About Nic: Founding CEC in 2012, Nic has advised a number of leading energy, security, fintech, HNWI/funds, political and oil gas stakeholders across the world. With nearly 20 years of industry experience, Nic is able to help advise you on all elements of your strategic communications strategy and facilitate connections at the highest levels. Nic is also the chair to a number of industry events and a frequent media contributor - speaking on a range of topics including: energy, business, politics and the Former Soviet Union.​ Nic is also a volunteer crew member with the Royal National Lifeboat Institution (RNLI) - the UK's volunteer based saving lives at sea charity.  

Nic is also the European Director for the Western Canada Defence Industries Association.

In 2024 Nic was made a Knight Commander of the Order des Belges (TME CdB) for humanitarian services. 

For all info or to contact Nic, please email nicholas.cobb@cecglobal.co

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