Southeast Alberta chamber sees defence spending boom as opportunity for region

The Southeast Alberta Chamber of Commerce is urging local businesses to position themselves for a wave of federal defence investment, pointing to assets such as CFB Suffield and the Foremost UAS Test Range as advantages that few other Canadian regions can match, according to a newsletter the chamber published on Oct. 6.

The chamber's push follows a report released Sept. 29 by the Canadian Chamber of Commerce's Business Data Lab, which projects core defence spending will grow from roughly $64 billion in 2025 to $160 billion by 2035, with cumulative spending potentially topping $1 trillion over the decade if Canada meets NATO's full target of five per cent of GDP.

"Canada is about to put more than $1 trillion on the table. An investment of that size should leave us with stronger Canadian businesses, a deeper pool of skilled workers, more secure supply chains and technologies we can own and export," Matthew Holmes, executive vice-president of international and chief of public policy at the Canadian Chamber of Commerce, said in the Sept. 29 release. "But if this takes the form of a series of government purchases instead of a long-term effort to build capacity, much of the true opportunity for the country will be lost."

The Business Data Lab report identifies maintenance, repair and overhaul; construction, engineering and Arctic infrastructure; software, AI and autonomous systems; and specialized components and supply chains as the four areas where Canadian businesses are best positioned to compete.

IMF modelling cited in the report suggests every additional $10 billion in defence spending could produce roughly $7 billion to $10 billion in economic activity over three years, with the return depending heavily on how much spending stays in Canada. Canada's 538 core defence firms currently import 47 per cent of their purchases, and small and medium-sized enterprises make up 92 per cent of defence firms but generate only about 30 per cent of industry revenue.

The Southeast Alberta chamber says the region already holds several of those competitive assets in one place: CFB Suffield, Canada's largest military training area; Defence Research and Development Canada Suffield; the British Army Training Unit Suffield; and the Foremost UAS Test Range, which offers beyond visual line of sight drone testing capabilities alongside open airspace and available industrial land.

The chamber said in its newsletter that not every defence opportunity will involve large contractors, and encouraged local businesses to consider whether their products or services could support defence supply chains, whether procurement or partnership opportunities exist, and whether relevant certifications or security clearances should be pursued.

The chamber is a member of the Canadian Chamber of Commerce's Defence and Security Committee, according to the newsletter.

Community Futures Entre-Corp is hosting a Defence Growth Forum on Oct. 29 in Medicine Hat, featuring sessions on CFB Suffield's future, federal procurement opportunities, drone and defence innovation, and workforce readiness. The Bow Island Commentator reported the forum runs from 7:30 a.m. to 5 p.m. at the Medicine Hat Lodge, citing its own reporting published Thursday. A tradeshow is scheduled for the day before, on Oct. 28.

Speakers listed on the Entre-Corp page include Mike Onieu, CFB Suffield Futures Project Officer; Susan Rowsell, chief scientist at the Suffield Research Centre; and representatives from BDC, PrairiesCan and the National Research Council Canada.