OTTAWA – November 03, 2026 -- Eighty-six percent of 49 Canadian defence and dual-use companies surveyed by the Alliance of Canadian Defence Companies (ACDC) said they would hire additional staff if future domestic defence demand were more certain. ACDC is using the finding to press federal officials and parliamentarians on procurement reform during a delegation to Parliament Hill.

The delegation is meeting senior federal officials to advance recommendations drawn from consultations with close to 90 firms and a member survey. Companies reported difficulty securing contracts after successful military trials, limited visibility into procurement decisions and uncertainty about future defence demand.

Survey shows demand certainty would unlock hiring, capability and capacity spending

Preliminary results from the 49 responding firms show where additional investment would go if demand were clearer:

• 86% would hire additional employees.
• 73% would develop new capabilities.
• 67% would expand production or delivery capacity.
• 67% would increase research and development.

ACDC wants procurement to separate Canadian-owned firms from companies merely operating in Canada

The association is calling for policies that distinguish between the two groups. Beyond ownership, it wants procurement to weigh where intellectual property is held, where key decisions are made and whether critical defence technologies can be produced and maintained in Canada. ACDC links the issue to rising defence spending, arguing these distinctions will determine whether public money builds lasting domestic industrial capacity.

Graduated contracts would move tested technology into operational use

ACDC proposes streamlined processes for smaller initial contracts, with larger orders unlocked as technologies meet operational and performance milestones. It also seeks earlier engagement with Canadian Armed Forces personnel, clearer procurement timelines and more predictable demand.

Bachar Elzein, founder and CEO of Reaction Dynamics, said Canadian companies need procurement that rewards proven milestones and sends a "predictable demand signal." He argued that space sovereignty requires capabilities designed, built and controlled in Canada, down to the software.

The delegation includes North Vector Dynamics, Dominion Dynamics, OVA, PV Labs, Kraken Robotics, Reaction Dynamics, Kepler Communications, JASCO Applied Sciences, Wuxly, Qohash and Canadian Strategic Missions Corporation. Together they cover autonomous systems, aerospace, marine and space technologies, advanced manufacturing, sensors and cybersecurity. ACDC represents approximately 200 Canadian-owned and controlled defence and dual-use companies.