The Federal Economic Development Agency for Northern Ontario (FedNor) will spend $15.8 million in Northern Ontario over three years to strengthen defence supply chains and increase their industrial and innovation capacity.
The funding is part of the federal government’s national $357.7-million Regional Defence Investment Initiative that extends from Canada’s $6.6 billion future Defence Industrial Strategy.
The investment includes businesses whose products and services are dual-use and that wish to pivot their activities to supply the defence sector.
Patty Hajdu, minister of jobs and families and minister responsible for FedNor, called the investment a whole-of-government approach aimed at building sovereign defence capacity and reinforcing industrial strength across the country.
“This program targets entrepreneurs leveraging innovation to grow their businesses and enhance their competitiveness, as well as regional economic stakeholders helping to create an entrepreneurial environment conducive to innovation and growth for all, across all regions,” Hajdu said.
The funding comes at a time when the Canadian government is initiating investments to support its defence industrial base.
Hajdu says these initial investments will drive research and innovation, strengthen domestic supply chains, grow critical resource stockpiles, and improve access to funds for Canadian small- and medium-sized defence businesses.
“Global markets are shifting rapidly, and Canada must be ready to meet the challenge,” Hajdu said.
“That is why the government is working with businesses across the country to strengthen domestic production and safeguard Canada’s national sovereignty and security. We must transform our economy from one that relies on a single trade partner to one that is stronger, more self-sufficient, and resilient to global shocks; an economy that protects our people and our values.”
Charla Robinson, president of the Thunder Bay Chamber of Commerce, said the chamber has been talking about the Defence Opportunities Fund for the North for several months and recognizes that the government is putting significant money into rebuilding national defence portfolios.
“This FedNor announcement really does align well with opportunities for businesses in our area to be involved,” Robinson said.
She added that the funding is also about the reinvestment in Canada’s military.
“We’re talking about things like ship building, and that could mean Thunder Bay’s shipyards could be part of some retrofits as the military is investing,” she said. “Buying new equipment and training opportunities. Where is that training going to happen?”
Robinson said they are watching out for Northwestern Ontario businesses that can build partnerships with groups to take advantage of those opportunities.
“We want to make sure that it’s Canadian businesses, including steel makers, tool and die and machining, that are getting the most bang from those dollars,” she said.
To be eligible for funding, all activities supported through the Regional Defence Investment Initiative must be military-first and qualify under the NATO spending target while demonstrating clearly how they meet a specific military need. They must also show how they contribute to strengthening Canada’s defence industrial and innovative capabilities that support military purposes.
