Through the Defence Industrial Strategy, the federal government is advancing a long-term, whole-of-government approach to strengthening the defence industrial base as a pillar of national security, economic resilience and prosperity. At a time of growing global uncertainty, Canada is focused on rebuilding, rearming and reinvesting in the Canadian Armed Forces, while ensuring Canadian workers and small businesses are at the centre of that effort.
Today, the Honourable Rechie Valdez, Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism), highlighted how Canada's Defence Industrial Strategy is supporting small and medium-sized businesses across the country. Representing 92% of firms and 40% of jobs in the defence sector, these businesses are critical to strengthening supply chains, driving innovation and ensuring the Canadian Armed Forces have the equipment they need to defend Canada and its sovereignty. The strategy will create up to 125,000 high-paying jobs, increase defence exports by 50% and grow revenues for small and medium-sized businesses by more than $5.1 billion annually.
Through the strategy, targeted investments are helping small and medium-sized businesses grow, innovate and compete at every stage, from research and development to commercialization, scale-up and integration into domestic and global defence supply chains. Up to $6 billion is being allocated through the Business Development Bank of Canada's new Defence Platform to provide financing and advisory services, alongside a new Defence Industry Assist stream through the National Research Council of Canada to support the development of innovative defence and dual-use technologies. Regional development agencies are also delivering the Regional Defence Investment Initiative, a $357 million program to help businesses expand and access new markets.
These investments are part of a broader effort to align defence spending with Canada's industrial strengths. By prioritizing Canadian companies and expanding domestic production, Canada is reducing its reliance on foreign suppliers and ensuring the Canadian Armed Forces have the capabilities they need, when they need them. This approach strengthens supply chains, supports Canadian workers and businesses and reinforces Canada as a reliable partner to its allies.
