WESTERN CANADA
BY PETER DIEKMEYER
Canada’s defence industry gathered in Ottawa for the CANSEC trade show in late May during a period of significant change. Shortly after the show on June 9th, Prime Minister Carney pledged that his government would meet NATO’s benchmark target of spending two per cent of the country’s gross domestic product on defence by the end of the current fiscal year in March.
But ironically, it was controversial statements by an erratic Trump Administration about Canadian sovereignty that had the greatest effect. A recent Abacus poll suggested that the majority of Canadians now back increased defence spending, and they want that spending done here at home.
David McGuinty, Canada’s new Minister of National Defence announced at CANSEC that the Canadian Armed Forces brought in over 6,700 recruits, a 55% increase from the year before. A range of consultations conducted for this CDR report suggest that these trends bode well for the country’s western region.
“I am optimistic,” says Mike Mueller, a British Columbia native whose role as President of the Aerospace Industries Association of Canada (AIAC) provides him with a bird’s eye view of national developments. Western Canada, which hosts a broad range of geographic training advantages, basing facilities and private sector supply capabilities has been an increasing focus. “A significant portion of Canadian defence spending is aerospace related. Local players are bound to benefit from positive momentum.”
Mueller, who grew up in British Columbia, says that the Carney Administration’s recent announcements surrounding defence spending will facilitate new approaches to issues ranging from procurement modernization to ‘Made-in-Canada’ incentives. Mueller cites KF Aerospace, which forms part of the SkyAlyne teaming that was awarded the Future Aircrew Training (FAcT) contract last year, as a potential beneficiary of increased federal defence spending.
The FAcT contract represented a major win for Tracy Medve, KF Aerospace’s President and CEO, who earlier this year was inducted into Canada’s Aviation Hall of Fame (CAHF) in Calgary, AB. This is due in large part for her support of women in leadership roles within the Aerospace industry, but also for her key role in growing KF Aerospace into Canada’s largest MRO and landing the FAcT contract which is valued at $11.2 billion. The FAcT Program – which is now underway – will see KF Aerospace and CAE lead SkyAlyne in delivering aircrew training and in-service support for the RCAF at three Western operating locations for the next 25+ years.
The appointment of Stephen Fuhr – an ex-fighter pilot and member of Parliament for Kelowna in the House of Commons – as Secretary of State (Defence Procurement) provides the region with an important voice. Fuhr is familiar with the capabilities of western defence companies such as KF Aerospace, and will no doubt have a broader view of the potential contributions BC and Western-based industry partners can make in the wider Canadian defence ecosystem.
Worth noting: During CANSEC, Tracy Medve helped LGen Kenny, Commander of the RCAF, unveil the liveries and designations for the fleets of aircraft that will be serving with the RCAF as part of the FAcT program. The names and liveries for the new FAcT fleets pay tribute to the 101-year history of the RCAF, while reflecting a forward-looking vision for Canada’s modern Air Force.
CASCADE AEROSPACE
Western Canadian defence professionals have heard promises of increased defence spending before. However, experience suggests that firing up procurement initiatives is not easy. One way to quickly increase spending is to upgrade existing equipment says Stu McIntosh, Executive Vice President & Chief Operating Officer at Cascade Aerospace. That includes the C-130 transport aircraft which Cascade Aerospace maintains at its facilities in Abbotsford, BC.
“Transport aircraft we maintain under contract with Lockheed Martin (Hercules C-130Js) are due for upgrade work,” says McIntosh. “Those new items and a broader contract extension proposal until 2034 are headed for the Treasury Board this Fall. Approving these would provide an excellent signal of the government’s intention to meet its spending commitments.”
Cascade’s western Canadian presence includes 550 employees based at the company’s facility which is located next to the Abbotsford International Airport. Many of these employees maintain Canada’s 12 legacy C-130H Hercules transport aircraft. These highly skilled professionals showcase the region’s capacity to take on additional future work.
Cascade’s export-related mandates for clients such as the United States Air Force have been particularly promising as the contracts – which are funneled through Canadian Commercial Corporation – are exempt from tariffs. “We do everything,” says MacIntosh. “That includes maintenance, repair, overhaul, engineering and supply chain management.” Cascade Aerospace also continues to service markets in Thailand, Taiwan and the Philippines.
MacIntosh is also seeing positive developments on the labor shortage issue which has been plaguing Canada’s aerospace industry. Nine students are currently getting hands on experience in skilled trades at its parent company’s “IMP Academy” which is now up and running on both coasts. The IMP Academy is an institution offering tuition-free programs to train individuals for careers in the aerospace industry, specifically as aircraft maintenance technicians
PM Carney’s ability to shift from tough election rhetoric – which centered on attacking the Trump Administration – to the realities of actual governance will be key to implementing his commitment to rebuilding Canada’s defence readiness. A key point to watch will be how the Liberals finesse their promise to review Canada’s purchase of Lockheed Martin F-35 fighter jets, a program which many Canadian suppliers have invested considerable resources to support.
These include Magellan Aerospace, which has been producing parts for the F-35’s horizontal tails at its Winnipeg facility. But Scott McCrady, the unit’s director of business development isn’t waiting around. Magellan continues to work on a $15.8 million program to design, build, launch, and operate dual use Redwing microsatellites, a next generation of “space domain awareness technology” which are designed to monitor items in space such as adversary deployments.
“The Canadian Armed Forces are going through a significant and far-reaching retooling influenced in part by developments internationally, in the US, and amidst Canada’s other Five Eyes (intelligence alliance) partners,” says McCrady. “Space, where we have numerous competitive advantages, presents a major future opportunity.”
Magellan Aerospace also does considerable work on civilian aerospace components and produces flares for the Canadian government (which are used for night-time search and rescue operations) at its 835,000 square foot Winnipeg facility, which houses 700 highly skilled workers. These assets can be repurposed to take on additional defence mandates as required. “A majority of people have no idea that there are LEO satellites in orbit that were completely designed and built in Winnipeg,” says McCrady.
StandardAero, which generated almost 20% of its $5.2 billion in sales during 2024 from defence related work is another company with a major presence in western Canada that stands to benefit should the Carney Administration accelerate defence spending.
Andrew Park, a General Manager at StandardAero Langley, points to capabilities at its Richmond, British Columbia facility. These include the provision of MRO engine support to the Royal Canadian Air Force’s fleet of CH-149 Cormorants, and related CT7-8A7 powerplants that equip the CH-148 Cyclones. “We take pride in this 25-year relationship,” says Park. “Our team always goes over and above, to ensure that fleets we support are always kept flying.”
StandardAero’s extensive partnerships with major OEMs position the company as a key player in future military engine MRO services. “It will be a few years before we see real movement in many hardware procurement programs,” says Park. “However, we are well-positioned to support the future fighters and new rotorcraft.”
The Royal Canadian Air Force’s CH-146 Griffons represent another opportunity. “The fleet is undergoing a mid-life upgrade,” he notes. “But it’s only a matter of time until the helicopters are replaced – under the next Tactical Aviation Capability Set (nTACS) project.”
Standard Aero is monitoring Canada’s intention to source a new helicopter to support the deployment of the RCAF’s future F-35 Lightening II fleet in the Arctic. Concerns have been raised regarding the F-35s single-engine, as it might be a drawback for operations in Canada’s far north, where harsh weather conditions and vast, remote terrain heighten the risks associated with engine failure. “There is a strong argument for following the Royal Canadian Mounted Police (RCMP) which chose the Black Hawk platform,” says Park. “Though it remains to be seen which path Canada takes.”
The Trump Administration’s belligerent trade rhetoric has caused considerable dismay among many Canadian businesses. But not at Calian Advanced Technologies, which has three manufacturing facilities in Saskatchewan. These include a locale that supplies ground-based space solutions and vetronics (vehicle-electronics) products for armored vehicles. A composites facility supports land, marine, air and space applications; and an agricultural technology facility produces secure fuel and monitoring solutions.
“We are well positioned,” says Russ Beaudin, the company’s Vice President of Defence. “Our composites team produces military and space solutions from carbon fiber, kevlar, and fiberglass for a range of applications. These deliver superior performance compared to conventional steel and aluminum which are subject to tariffs.”
Beaudin cites Canada’s continental defence modernization projects as particularly promising. These include a satellite ground station in Canada’ North, Arctic Over-the-Horizon Radar, and command and control solutions for aero/space applications. “We have over four decades of experience delivering ground stations for satellite applications on every continent including Antarctica, says Beaudin. “Our recent acquisition of AMS – a medical and paramedical services provider in Canada’s North also positions us well for future work.”
Canadian government commitments related to new armoured vehicles, and ground-based air defence, self-propelled artillery, rocket artillery projects, also align well with Calian’s capabilities. “We are ideally positioned,” says Beaudin. “We have the capacity to deliver on all these programs. Government officials have said they want to buy from Canadian suppliers to reduce cross-border dependence. It’s time for them to step up.”
Western Canadian defence reports inevitably address naval infrastructures surrounding British Columbia’s Port of Vancouver through which a quorum of the country’s Pacific trade passes. Jim Girard’s perch as president of OSI Maritime Systems, which supplies integrated bridge navigation technology to the Royal Canadian Navy’s newbuild ships, provides him excellent insight into related ecosystems in the region where most of the company’s 380 employees are based.
“The National Shipbuilding Strategy has been a huge success for many western Canadian suppliers,” says Girard. “We continued to progress last year after doubling sales in 2023. We significantly expanded our office and manufacturing base and are increasingly developing international opportunities.”
Late last year OSI Maritime announced a partnership with EDGE Group to explore the feasibility of founding a United Arab Emirates facility that would design, build, and deliver scalable integrated bridge systems (IBS) for local naval defence and civil customers. “There is increased spending in all major markets,” says Girard. “Many countries are not sure they will have the backing of the superpowers. We also recently opened a German office in Kiel close to Poland, Denmark and Sweden. Everybody I encountered in Europe was talking about growing their defence footprint.”
Girard, who also held the title of OSI Maritime’s Chief Operating Officer is getting a lot of the credit for that success. In late April the company announced that he would be promoted to the role of Chief Executive Officer. Part of Girard’s focus in the new role will be on multi-million dollar capital investments to ensure that OSI Maritime Systems’ 75,000 square foot facility can better accommodate upcoming work on Canada’s River-Class Destroyers and possible future submarines.
Chris Pogue, who bills Thales Canada as “the leading in-service support provider to the country’s non-combatant fleet” sees huge opportunities stemming from recent shifts. These include fulfilling the increasingly important multi-billion AJISS contract to maintain Canada’s Arctic Offshore Patrol Ships and Joint Support Ships, which are crucial for building the Royal Canadian Navy’s presence on both coasts. “The public is getting more involved in defence issues,” says Pogue, who is Thales Canada’s CEO. “Recent developments have made the idea of sovereignty clearer in Canadians’ minds than ever before.”
Pogue is one of Canada’s most seasoned defence executives. A large part of his success stems from his ability to nurture top talent. Thales Canada’s roster includes Ian Krepps, Vice President of Business Development, who emphasises the need for a continuous improvement approach in all aspects of the business including AJISS and the recently inked Minor Warships and Auxiliary Vessels (MWAV) contract.
“We are migrating from transactional rules-based mandates to relational approaches in which both parties commit to win-win collaboration,” say Krepps. “That means constantly working with new suppliers, tools and business processes within our partner network.” The Thales team’s aim is to drive efficiency, productivity and to maximize ship use. “Operational availability-centered contracts that provide clients optionality are the wave of the future,” says Pogue. “Because only clients really know which ships they will need and when.”
Seaspan Shipyards, which is charged with building non-combat vessels within Canada’s National Shipbuilding Strategy, launched two ships last year and started construction on another while simultaneously conducting repair and modernization work on the Royal Canadian Navy’s current frigate and submarine fleets. Key to those efforts says Leo Martin, the company’s Senior Vice President – Programs & Supply Chain, was the launch of the HMCS Protecteur, the longest naval vessel built in Canada to-date. Once sea trials are complete the new Joint Support Ship will enable other Royal Canadian Navy ships to deploy on extended missions without having to rely on allies to refuel.
Construction of the Canadian Coast Guard’s new heavy Polar Icebreaker, the only Polar Class 2 vessel to be built in Canada in over 60 years, which began in April, will be particularly important in asserting Canadian sovereignty in the Arctic which some countries like China do not recognize.
“We saw during the global pandemic that having a domestic, resilient supply chain is critical, particularly as it relates to defence construction and procurement,” says Martin. “We are well-placed to ensure that the Canadian Coast Guard will be able to have the ships it needs to bolster Canada’s security in the Far North.”
Seaspan’s Victoria Shipyards also plays a key role in keeping the Navy’s current fleet of aging submarines and frigates afloat. The company recently completed its second Docking Work Period for the HMCS Calgary related to the maintenance and modernization of Canada’s West Coast-based Halifax-class frigates.
Submarines are an excellent tool to protect Western Canadian ports, including facilities at Prince Rupert, whose importance could grow exponentially during the coming decades if Canada decides to build the pipeline infrastructure needed to facilitate the export of tens of billions of dollars’ worth of Alberta oil and propane. Hence the importance of Babcock Canada, which continues to lead the delivery of in-service support for Canada’s four Victoria Class submarines through the Victoria In-Service Support Contract (VISSC).
A recent focus has been on completing an extended docking work period on the HMCS Victoria. “We have achieved a number of milestones,” says Tony March, Babcock Canada’s Chief Executive Officer. “These include completion of over 800 hull and system surveys, removal of the diesel generators – a first-in-class evolution – and commencement of major structural repairs.” Babcock’s importance could grow during the coming years as Ottawa considers the acquisition of new submarines through the Canadian Patrol Submarine Project (CPSP).
However, Babcock’s capabilities extend far beyond that. The company recently reached initial operational capability on the company’s10-year contract to support Ascent Helicopters in their delivery of Leonardo AW169 rotary-wing air ambulance services to British Columbia Emergency Health Services through Ascent’s operating base in Parksville. Babcock also pitched in during the Manitoba wildfire season by delivering aerial wildfire suppression services to the provincial government.
Ray Castelli, CEO of Weatherhaven, which markets portable infrastructure such as shelters used in military operations, field hospitals, and disaster relief says that fast changing developments in the defence sector and broader society have made flexibility more important than ever. “The nature of warfare is changing,” says Castelli. “Large bases are a thing of the past. If you can’t run your mission quickly you are a dead duck once the drones spot you.”
Castelli cites increasing interest in Weatherhaven’s upgraded Tactical Redeployable Expanding Container Capability (TRECC) as one example. The company has sold 200 in Canada and 3,000 overseas of this command post capability which can be rolled out of an aircraft and be deployed in three minutes, lead a mission, be disassembled and leave the area in 30 minutes. That success is slated to increase. Weatherhaven recently signed a Cooperative Research and Development Agreement (CRADA) to further refine the solution for the US army.
Weatherhaven itself, which has its head office, and finance, billing and research and development teams in British Columbia, tangibly demonstrates its flexibility to customers and supply chain partners through its operations outside the province. These include a Brockville facility which provides operational support for its HQSS and other product line offerings. Castelli himself is based in Washington where he has landed several contacts. “The US market is bigger than the next 10 markets combined,” says the veteran executive. “You have to be where the action is.”
During the coming years Castelli plans to continue to build on Weatherhaven’s export successes in Eastern Europe, Romania, Moldova and Poland, where Canadian solutions have found applications, and to foster research into Arctic mobility and shelter technology to support Canada’s growing efforts in the North.
TIME IS OF THE ESSENCE
Mueller for his part has been helping to prepare for the 2025 edition of the Aerospace Defence and Security Exhibition (ADSE) which will be held again this year in conjunction with the Abbotsford Air Show in Abbotsford British Columbia. Tentative speakers include Arianne Reza, a deputy minister in charge of procurement at Public Services and Procurement Canada and Wendy Hadwin, assistant deputy minister, at the Department of National Defence who is rumored to be leading refinement of a defence industrial strategy.
“Timings are key,” says the seasoned aerospace executive. “There are whispers of negotiations regarding significant defence commitments that are expected to be announced at upcoming G7 and NATO meetings. This will provide us all with a good idea where we are going.”
The Aerospace Defence and Security Exhibition (ADSE) will take place on August 7th and 8th, 2025 in Abbotsford British Columbia.
Peter Diekmeyer is CDR’s Quebec Bureau Chief
