3.1
Defence Demand Visibility and Investment Certainty
A recurring concern was the lack of sufficiently detailed, timely, and accessible information regarding future defence requirements and procurement opportunities.
Participants recognized increasing government attention and investment commitments related to national defence. However, organizations indicated that broad announcements do not always provide the specificity necessary to make investment, production, workforce, or business development decisions.
Principal Issues Identified
- Limited visibility into specific procurement needs below the level of major defence platforms.
- Difficulty distinguishing announced investment intentions from executable opportunities and funded requirements.
- Uncertainty regarding procurement schedules and when demand will reach SMEs and lower-tier suppliers.
- Gaps between published plans, government outlook documents, and current information available through procurement channels.
- The risk of organizations investing in new capabilities without sufficient information about the likelihood or timing of future contracts.
- Industrial capacity being difficult to sustain while organizations await procurement activity.
- Potential loss of skilled employees, established industrial capacity, and supply-chain readiness during prolonged procurement delays.
- Concern that existing manufacturing capabilities may be overlooked in favour of new programs or technologies, even where established firms already possess relevant capacity.
Participants emphasized that investment decisions for equipment, facilities, and long-lead production capabilities must frequently be made before contracts are awarded.
Companies therefore require more than general awareness of future spending. They require sufficient demand intelligence to understand whether an opportunity is credible, relevant, and likely to materialize within an economically viable timeframe.
3.2
Procurement Access and Market Navigation
Participants identified defence procurement navigation as a significant barrier, particularly for organizations entering the sector for the first time.
Companies may need to navigate multiple procurement systems, government departments, contracting authorities, qualification procedures, and industry engagement mechanisms.
Principal Issues Identified
- The absence of a clear and accessible roadmap for entering Canadian defence markets.
- Difficulty identifying relevant procurement portals and opportunity sources.
- Limited access to sufficiently detailed technical requirements early in the procurement process.
- Challenges locating specifications, drawings, and product requirements within procurement documentation or associated supplier systems.
- The cost of participating in procurement processes without clear visibility of likely contract outcomes.
- The importance of engaging relevant procurement and technical personnel before formal solicitations are issued.
- Challenges transitioning from requests for information, demonstrations, and testing activities into competitive procurement and production contracts.
- Limited understanding of the distinctions between innovation funding, demonstration programs, direct government procurement, and prime-contractor supply-chain opportunities.
Participants suggested that organizations would benefit from clearer information on the different routes to market, the institutions involved, and the requirements associated with each pathway.
The discussion reinforced that general procurement awareness is not equivalent to practical procurement readiness.
3.3
Prime Contractors, Tier 1 Suppliers, and Industrial Matchmaking
A strong recurring theme was the need to improve direct connections between Ontario SMEs and major defence contractors.
Participants noted that direct engagement with a prime contractor may not always be the most effective route to an opportunity. Many relevant requirements exist within Tier 1, Tier 2, and lower-tier supply chains.
Principal Issues Identified
- Limited visibility into prime-contractor supply-chain structures.
- Difficulty identifying the organizations responsible for specific subcontracting requirements.
- Insufficient information about the industrial capabilities required by defence primes and their suppliers.
- Limited structured opportunities for SMEs to demonstrate relevant industrial capabilities to buyers.
- Difficulty converting general networking activity into sustained commercial engagement.
- Limited visibility among major buyers of capabilities already present within Ontario.
- The need for more direct interaction between qualified suppliers and relevant technical or procurement representatives.
- Limited awareness of emerging industrial teaming arrangements and associated opportunities.
Participants identified value in structured capability directories, supplier mapping, buyer guides, targeted industrial engagement, and opportunities to connect qualified Ontario businesses with relevant defence supply chains.
Strategic Partner Initiative
Capability Atlas — Developed by ENTEX in Collaboration with ODA
The need for improved capability visibility and industrial matchmaking has emerged repeatedly through ODA’s interactions with its membership and the wider defence and dual-use industrial community.
ENTEX, an ODA Strategic Partner, is developing the Capability Atlas to improve industrial capability discovery, mapping, and accessibility.
ODA is collaborating with ENTEX to introduce the platform to its members and facilitate broader industry access, connecting ENTEX’s technology and development work with the practical needs of Ontario’s defence industrial ecosystem.
The Capability Atlas is currently available in an early-access beta environment through the ODA Member Hub.
The initiative is intended to strengthen industry capability discovery, support informed buyer-supplier engagement, and improve the visibility of relevant Ontario industrial competencies.
The ENTEX-developed Capability Atlas will also be complemented by procurement intelligence capabilities supported through ODA’s strategic partnership with Publicus and accessible through the Member Hub.
3.4
Industrial and Technological Benefits (ITBs)
Industrial and Technological Benefits emerged as an area requiring practical education, greater transparency, and improved accessibility.
Participants identified uncertainty concerning ITB requirements, engagement processes, the role of prime contractors and their supply chains, and how SMEs can position their capabilities for participation.
Principal Issues Identified
- The need for accessible introductory guidance explaining how the ITB system operates.
- Better visibility into relevant ITB commitments and associated supplier opportunities.
- Improved understanding of decision-making processes and the stakeholders involved.
- More direct engagement between SMEs and relevant ITB personnel.
- Greater clarity concerning lower-tier suppliers involved in major defence programs.
- Better awareness of the industrial commitments undertaken by primes and Tier 1 suppliers.
- The importance of understanding how ITB considerations intersect with procurement, supplier qualification, and established commercial relationships.
Participants emphasized that ITB-related opportunities can be difficult to navigate without an understanding of the organizations, requirements, and commercial relationships involved.
The discussions reflected a desire for more practical, industry-accessible information and direct engagement with individuals familiar with the processes.
3.5
Access to Capital and the Cost of Industrial Transition
Financing was identified across the consultation channels as a significant issue affecting industrial readiness.
Participants described a mismatch between normal business investment timelines and the lengthy periods sometimes required to pursue, qualify for, and secure defence contracts.
Principal Issues Identified
- Limited availability of capital to fund equipment, certification, testing, and business development.
- Difficulty carrying operating costs while awaiting procurement and contract decisions.
- Uncertainty concerning the return on investment from capabilities developed in anticipation of future defence demand.
- The need for financing mechanisms that reflect the risk profile and long timelines associated with defence market entry.
- The effects of wider economic conditions and international trade pressures on firms’ ability to fund diversification.
- The need to understand grants, contributions, loans, investments, and other funding mechanisms together.
- Uncertainty regarding eligibility, timing, and compatibility of different financial support programs.
- The need for funding that supports both innovation and the scaling of established industrial capabilities.
- The financial burden of maintaining qualified personnel, equipment, and facilities during periods of delayed demand.
- The importance of timely assessment, approval, and deployment of funding associated with industrial development initiatives.
Participants expressed interest in financing arrangements that better accommodate the realities of defence procurement cycles and the industrial investments required to establish readiness.
There was also recognition that financial support should consider existing manufacturers seeking to expand or diversify, not solely newly established enterprises.
3.6
Certifications, Cybersecurity, and Regulatory Readiness
Certification and regulatory compliance costs were repeatedly identified as barriers to entering and expanding within defence supply chains.
Participants referenced industrial standards, controlled goods requirements, security clearances, and cybersecurity certification programs.
These included the United States’ Cybersecurity Maturity Model Certification (CMMC) framework and Canada’s Canadian Program for Cyber Security Certification (CPCSC).
Principal Issues Identified
- Direct costs associated with certification, audits, consulting, and compliance implementation.
- Limited specialist resources within smaller companies.
- Uncertainty concerning the timing and applicability of evolving cybersecurity requirements.
- The complexity of different compliance regimes across Canadian and international defence markets.
- Challenges obtaining organizational and personnel security clearances.
- Difficulty accessing certain requirements or opportunities before relevant security approvals are established.
- The risk of companies investing heavily in compliance without clear associated procurement opportunities.
- The need for proportionate compliance and risk-management approaches that recognize differences in organizational size, role, and exposure.
- Limited awareness of financial and advisory resources that may be available to support certification readiness.
Participants emphasized that cybersecurity and regulatory readiness are essential to participating in defence supply chains, but the associated costs and processes can be challenging for SMEs.
The feedback included requests for practical education, specialist guidance, and appropriate support mechanisms to help companies understand and satisfy relevant requirements.
3.7
Workforce Development, Skilled Trades, and Immigration
Workforce availability and development were identified as both immediate and longer-term concerns.
Participants described competition for qualified employees between large manufacturers, smaller firms, and established defence suppliers.
Principal Issues Identified
- Difficulty recruiting and retaining specialized manufacturing personnel.
- Shortages affecting skilled trades and production roles, including CNC operations.
- Potential loss of existing industrial skills during periods of low or delayed demand.
- Misalignment between some education and training programs and immediate employer requirements.
- The need for defence-specific skills beyond manufacturing, including business development, administration, procurement, and compliance.
- The effects of immigration processing and work authorization timelines on companies seeking to recruit or retain skilled employees.
- The longer-term effects of retirements on manufacturing workforce capacity.
- The need for employers to participate directly in the development of industry-relevant training pathways.
- Opportunities for stronger collaboration among employers, colleges, universities, workforce development organizations, and government.
Participants indicated that workforce readiness should be considered alongside equipment investment, procurement demand, and industrial growth.
Companies require sufficient confidence in future activity to retain trained employees and make longer-term commitments to workforce development.
3.8
Domestic Industrial Capacity and Canadian Participation
Participants discussed how defence investment can strengthen Canadian industrial capabilities while remaining mindful of established international commercial relationships.
Several contributors advocated for clearer incentives, procurement considerations, and strategic support encouraging the development and use of Canadian industrial capabilities.
The feedback distinguished between purchasing Canadian products and investing in capabilities that are developed, manufactured, and sustained within Canada.
Principal Issues Identified
- Supporting domestic industrial capacity through more predictable procurement demand.
- Encouraging Canadian participation in the supply chains associated with major defence projects.
- Protecting established manufacturing capabilities and preventing avoidable relocation of industrial capacity.
- Supporting domestic technology development and production scaling.
- Identifying opportunities for Canadian manufacturers within major equipment and platform programs.
- Balancing sovereign industrial objectives with existing international supply relationships that remain commercially or operationally valuable.
- Considering supply-chain resilience, material availability, and domestic sources of critical industrial inputs.
- Identifying opportunities for established firms in adjacent sectors to contribute to defence requirements.
- Exploring incentives and procurement considerations that could strengthen Canadian industrial participation while respecting applicable obligations and operational needs.
The discussions emphasized that strengthening domestic industrial capability requires both market opportunity and the conditions necessary for companies to invest, produce, and remain commercially competitive.
3.9
Innovation, Testing, Commercialization, and Production Scaling
Innovation pathways were discussed as an important component of industrial development, but participants emphasized the need to connect innovation programs with commercial outcomes.
The discussions included practical examples involving government innovation testing streams and the challenges associated with moving from product development to procurement.
Principal Issues Identified
- The time required to progress through proposal development, evaluation, testing, and contracting.
- Difficulty locating appropriate end users and testing partners.
- The importance of establishing relationships with relevant technical stakeholders.
- The financial burden of maintaining development and testing activities before revenue becomes available.
- The need to distinguish early-stage innovation support from procurement opportunities for products already ready for deployment.
- Difficulty scaling from a successful prototype to repeatable manufacturing and production.
- The importance of technical requirements, material selection, testing, quality assurance, and manufacturing partnerships.
- Challenges understanding applicable technical readiness and qualification requirements.
- Limited access to specialist manufacturing and engineering resources needed to move products into production.
Industry feedback emphasized the value of earlier access to end-user requirements, technical guidance, testing facilities, qualified suppliers, and manufacturing partners.
Small demonstration projects with clear performance objectives were also identified as potentially useful in helping organizations progress from promising designs to commercially viable production.
3.10
Government Coordination and Policy Implementation
Participants identified a perceived gap between strategic announcements and practical implementation across governments and supporting organizations.
Principal Issues Identified
- The need for greater clarity concerning desired industrial outcomes.
- Differences in the pace and priority assigned to defence industrial development across organizations.
- The importance of maintaining progress on procurement reform.
- The need for coordination among federal, provincial, and other relevant stakeholders.
- Greater accessibility of decision-makers and subject-matter specialists.
- The importance of ensuring defence industrial initiatives support practical near- and medium-term outcomes for SMEs.
- Better communication concerning emerging strategies, requirements, and implementation schedules.
- Timely assessment, approval, and deployment of proposals submitted through relevant funding and industrial development initiatives.
- Improved alignment between industrial development programs and the practical conditions faced by suppliers.
Participants also emphasized that effective defence industrial development depends not only on assisting companies to become ready, but also on the ability of procurement systems and customers to convert industrial capabilities into tangible opportunities.
3.11
Intellectual Property and Industrial Supply-Chain Resilience
Participants raised concerns about protecting proprietary data and intellectual property, particularly during procurement engagement, partnership development, and innovation activities.
Other concerns included the security and reliability of suppliers within established industrial supply chains.
Principal Issues Identified
- Protection of commercially sensitive technical information and intellectual property.
- Managing information disclosure during early engagement with prospective customers and industrial partners.
- Maintaining appropriate confidentiality when participating in industry collaboration.
- Protecting Canadian-developed technologies while supporting commercialization and international market access.
- Identifying and managing vulnerabilities within industrial supply chains.
- Maintaining reliable access to required materials, components, and specialized suppliers.
- Balancing increased collaboration with legitimate commercial and security considerations.
The feedback reflects the importance of trusted relationships, appropriate information safeguards, and resilient supplier networks as Ontario companies pursue a growing range of defence opportunities.
