TORONTO — A bustling garment shop on a downtown street is now a hub of Canada’s growing defense industry. Two workers at a sewing table are stitching camouflage fabric and Velcro for helmet covers destined for the Canadian Armed Forces. The factory, supplying luxury outerwear brand Wuxly, exemplifies a wave of Canadian companies moving into military contracts as Ottawa ramps up spending.
Government policy fuels the surge
Prime Minister Mark Carney announced a defense industrial strategy earlier this year that earmarks an additional $60 billion over the next five years. The plan aims to reduce reliance on U.S. suppliers, develop “sovereign capabilities” such as aerospace, robotics and unmanned systems, and create roughly 125,000 jobs. Current defense spending sits between $36 billion and $43 billion annually, and the new funding represents a historic peacetime investment.
“The scale of investment is quite significant by Canadian standards,” said Philippe Lagassé, an associate professor at Carleton University who studies defense policy. “Every defense show is sold out, and new companies are entering the sector.”
Local firms answer the call
Wuxly’s helmet covers let soldiers attach call‑sign patches, lights, cameras and beacons. The company also produces military parkas and tank covers, and has supplied Ukraine with 40,000 female uniforms. Founder and CEO James Yurichuk said the Arctic’s harsh climate demands proper clothing for troops, and the new strategy gives Canadian makers a chance to meet that need.
Robotics startup New Frontier Robotics, a two‑person team based at the University of Waterloo, is developing a mobile manipulator robot that can perform maintenance tasks in the Arctic without endangering human operators. Co‑founder Nikhil Malhotra explained that the robot’s AI‑driven arm could work autonomously on remote infrastructure, reducing risk to personnel.
Drone manufacturer Volatus Aerospace, located near Montreal, is expanding both civilian and defense operations. Its “Canary” drone can airdrop medical supplies to remote First Nations communities in Alberta and, with minor modifications, deliver resupply packages to soldiers or carry munitions.
Challenges ahead
Opposition parties have pledged to scrutinize the spending plan in future elections, and Canadian firms may still find it difficult to compete with the massive U.S. defense market. Lagassé warned that American companies’ larger research budgets keep them “a bit more at the edge of technological capability.”
Nevertheless, the strategy’s emphasis on domestic supply chains and diversified global sourcing—such as recent radar plane purchases from Sweden’s Saab and submarines from Germany’s ThyssenKrupp—signals a clear intent to build a self‑sufficient defense sector.
For Toronto’s manufacturers, robotics labs, and emerging aerospace firms, the government’s commitment offers a tangible path to growth, job creation and a stronger national security posture in the increasingly contested Arctic region.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
