Procurement, talent, and funding gaps hold back Canada's defence goals - KPMG International
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The study comes amid rising geopolitical instability, intensifying competition for critical resources, as well as increasing and accelerating defence spending among NATO allies. The report argues that Canada’s challenge is no longer defining its ambition, it is converting strategy into capability. “Defence spending can be a powerful economic driver, especially if it is used to build Canada’s domestic industrial base and boost long-term productivity,” says Ali Jaffery, Chief Economist, KPMG Canada. “The government’s direction is encouraging, but delivery is the real test. The next step is turning ambition into action.” Canada’s Budget 2025 and the Defence Industrial Strategy (DIS) together signal a shift toward strengthening domestic industrial capacity, reducing strategic dependencies and reinforcing economic resilience across infrastructure, energy, digital sovereignty and defence. The report underscores that the implementation of the DIS, combined with access to new capital through initiatives like the NATO Defence, Security and Resilience Bank (DSRB), will be central to accelerating project delivery, attracting more private investment, and closing longstanding execution gaps.
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