Three organizations working with Quebec SMEs share a total of close to $4.5 million in non-repayable CED funding.
Today, during a speech at Aéro Montréal's 2026 International Aerospace Innovation Forum, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for CED, announced a total of $4,495,000 in Government of Canada investments granted to Aéro Montréal, Propulsion Québec and Sous-traitance industrielle Québec (STIQ) to implement a continuum of services for Quebec SMEs that wish to integrate into or increase their activities within national and international defence supply chains. In an increasingly complex world, investing in local businesses will strengthen Canada's industrial base, create quality jobs across the country and help Canadian businesses be competitive and succeed on the international stage.
Sous-traitance industrielle Québec (STIQ) is receiving a contribution of $1,995,000 to offer services to manufacturing businesses in order to prepare them to meet defence sector requirements. Quebec aerospace industrial cluster Aéro Montréal and electric and smart vehicle industrial cluster Propulsion Québec are sharing a $2.5 million contribution to guide businesses in the aerospace and electric and smart transportation sectors in their commercialization efforts within the defence market in Canada and in allied countries.
The three organizations will work together to offer coordinated, ongoing, complementary services to businesses to foster their integration into defence supply chains. Thanks to strategic investments and collaborations such as this one, a stronger defence industry in Canada will generate significant economic benefits across Quebec and Canada and help make the defence industrial base a pillar of national security, economic prosperity and strategic autonomy.
A strong defence industry is key to the country's sovereignty and national security, as well as its economic resilience and prosperity in the long term. That is why the Government of Canada is taking bold steps to foster a more resilient, sustainable defence industrial base, including by making targeted regional investments to increase Canada's defence industrial capacity.
Quotes
"Our government has a clear, ambitious plan to strengthen Canada's sovereignty, security and prosperity, while also generating economic spin-offs for industry and communities across Quebec. Investing in SMEs is a key element of our government's plan aimed at building, protecting and strengthening Canada's defence industry. By supporting industrial clusters that offer services to Quebec SMEs in the aerospace, manufacturing, and electric and smart transportation sectors, CED is making strategic investments to help increase competency and stimulate innovation."
The Honourable Mélanie Joly, Member of Parliament for Ahuntsic-Cartierville, Minister of Industry and Minister responsible for CED
"The Defence Industrial Strategy offers great economic development potential for Quebec businesses, in particular in aerospace. Aéro Montréal is delighted with the support announced today at the International Aerospace Innovation Forum, which will enable us to guide our SMEs so they can come out ahead by maximizing their defence and security business opportunities, while also meeting national sovereignty targets."
Mélanie Lussier, President, Aéro Montréal
"We salute CED's commitment to SMEs in the electric and smart transportation sector. This support will make it possible to provide concrete guidance to businesses to help them access defence and security supply chains. Many businesses in our sector already have high-potential technologies and expertise for these markets. The main challenge continues to be understanding this complex environment and its requirements. We will step up to the plate to guide SMEs in seizing opportunities and positioning themselves strategically. We are also very pleased to work with Aéro Montréal and STIQ to maximize the spin-offs of this initiative for Quebec's economy."
Alexis Laprés-Paradis, CEO, Propulsion Québec
"As a manufacturing association that brings together many businesses operating in Quebec's defence sector, STIQ is delighted with this funding from CED, which will make it possible to launch Podium Défense. The aim of this program is to guide Quebec suppliers that wish to access this strategic market by helping them to better meet contractor requirements, notably by implementing structural projects and providing access to key information. The defence market offers strong growth potential for Quebec businesses, and STIQ, in collaboration with key players in the sector, will be here to support them in this approach."
Richard Blanchet, President and CEO, STIQ
Quick facts
- As announced in Budget 2025, initial investments have been made to boost Canada's defence industrial base by allocating $6.6 billion over five years, starting in 2025-2026, under the Defence Industrial Strategy.
- These initial investments will stimulate research and innovation, strengthen national supply chains, and improve access to funding for Canada's small and medium-sized businesses in the defence sector.
- In this context, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for CED, announced on December 8, 2025, the launch of the Regional Defence Investment Initiative for Quebec (RDII), aimed at meeting the country's defence needs, while also stimulating regional economic development. In Quebec, the RDII has an investment budget of $64.9 million over three years.
- The RDII funds are being granted under CED's Regional Economic Growth through Innovation (REGI) program. This program targets entrepreneurs leveraging innovation to develop their operations and increase their competitiveness, as well as regional economic players helping to create an entrepreneurial ecosystem conducive to innovation and growth for all, across all regions.
- By drawing on CED's expertise and regional anchoring in Quebec to support innovation, the RDII will strengthen Canada's defence industrial base in all regions across the country, while also helping Canada meet its NATO defence spending commitment.
- CED is the key federal partner in Quebec to promote economic development among the regions and SMEs. With its 12 regional business offices, it accompanies businesses, supporting organizations and all regions across Quebec into tomorrow's economy.
