BusinessInternational

Canadian Companies Pitch Faster Pathway for the Defense Market

Construction is underway on MDA’s new satellite manufacturing facility in Canada. Image: MDA Space

Canada is using that new-year energy to push the space defense sector to go faster.

Space Canada, the country’s space industry advocacy group, released a 17-page position paper Wednesday suggesting ways in which Canada can speed up procurement, in line with global trends.

“What the space sector needs now is for Canada to act on its intent for change and modernization, recognizing and embracing space as the force multiplier it is for national defense,” Space Canada wrote.

Leveling up: Space companies are ready for Canada’s new Defense Investment Agency, an initiative announced in October to speed up defense procurement, to get going. To help it get started, industry has four main ideas.

  1. Create a “resilient” defense space industrial base by buying from Canadian suppliers, as required under the new “Buy Canadian” initiative.
  2. Modernize procurement by using a “performance-based, commercial-like” approach instead of RFIs and RFPs. Canada could also use commercially owned and operated solutions (instead of military ownership) to speed up procurements and reduce risk.
  3. Increase dollar limits to support new technology. For example, one cited defense commercialization program offers just $250,000 CAD ($180,000) each for Technology Readiness Levels 1 to 3, which Space Canada wants to boost to $1M CAD ($720,000) per level.
  4. Diversify exports beyond the US, which accounts for the vast majority of Canada’s defense exports. While the US remains an important ally, Prime Minister Mark Carney previously said Canada would seek other markets in part due to tariffs. Canada’s space sector exports 40% of goods and annually raises $2B CAD ($1.44B USD).

Two pathways: Space Canada isn’t the only Canadian entity promoting dual-use technology and expanding global partnerships. In November, the CSA announced it was boosting its investment in ESA to broaden cooperation outside of the US, in response to tariffs.

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