Prairies Economic Development Canada investing more than $8.2 million in Saskatchewan to boost made‑in‑Canada defence capabilities
In a rapidly changing world, Canada's security and sovereignty depend on having the capacity to build, maintain, and supply critical equipment and services right here within our borders.
Today, the Honourable Buckley Belanger, Secretary of State for Rural Development, on behalf of Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada (PrairiesCan), announced more than $8.2 million in federal funding through the Regional Defence Investment Initiative (RDII), for three projects in the Yorkton area. These funds will support the growth and integration of Canadian small and medium-sized businesses into domestic and international defence supply chains.
The investments announced today are:
- Parkland Welding & Machine Ltd. and PWM Hydraulics Ltd. (PWM) in Yorkton will expand its engineering, advanced manufacturing, fabrication, assembly, testing and proofing capabilities through the addition of CNC machining, robotics, and quality-control laboratory, enabling domestic production of defence products for customers in Canada and NATO allies. PrairiesCan is providing a repayable investment of $5 million towards this project.
- Prairie Agricultural Machinery Institute in Humboldt will create an advanced military engineering and testing facility to provide off-road and on-road heavy-vehicle testing, hot and cold environmental chambers, and robotic and drone testing supported by data analytics for prairie manufacturers to meet domestic and international standards. PrairiesCan is providing $3 million in non-repayable funding towards this new capacity.
- Saskatchewan Polytechnic's Digital Integration Centre of Excellence (DICE) in Saskatoon will develop and test a low-cost multi-agent artificial intelligence drone system for autonomous command and control. This will strengthen Canada's sovereign industrial base by delivering domestically developed counter-Uncrewed Aerial System (UAS) capabilities. PrairiesCan's non-repayable investment of $277,000 will support this project.
Growing regional defence capacity on the Prairies reduces reliance on foreign suppliers while creating good jobs and long-term economic opportunities at home.
Today's announcement aligns with the Government of Canada's Defence Industrial Strategy (DIS) which aims to equip the Canadian Armed Forces by expanding domestic production, strengthening supply chains, and reducing reliance on foreign technology. These investments will help grow Saskatchewan's defence manufacturing sector, create good jobs, advance research and development, and bring new technologies to market, supporting long-term economic opportunities.
Secretary of State Belanger also highlighted recent government measures to build an economy where Canadians are empowered with greater security, certainty, and a lower cost of living, including the suspension of the federal fuel excise tax until Labour Day 2026. This is expected to reduce Canadians' bill at the gas station by 10 cents per litre on regular gasoline and 4 cents on diesel. The government is also temporarily suspending the federal fuel excise tax on aviation fuels.
Cutting the tax on gasoline and diesel is a responsible measure that will reduce operating costs for truckers and businesses in the food, agriculture, housing, construction, and delivery sectors. With lower costs and greater financial strength, businesses can hire more workers, confidently build, and export more products to global markets.
