The Canadian Defence and Security sector has witnessed a surge of activity over Q309, paving the way for an increasingly active final quarter and most certainly an eventful next fiscal year. While the budget for this sector continues to grow, there seems to have been a monumental shift with regards to monetary, defence as well as industrial focus.

The Canadian national defence landscape has been given an entirely new blueprint in the form of the recently implemented Canada First Defence Strategy (CFDS), which will effectively channel funding into key areas, to not only improve its military and defence capabilities, but also that of the industrial and economic sectors as a whole. From a Canadian security and defence personnel standpoint, the government has clearly felt the need to boost investment in order to reverse the negative growth trend witnessed over the past fiscal year.

With regards to military investment, 2009 has been a lively period with discussion focused on how best to improve procurement with regards to defence investment, as well as an attention shift towards increased funding focused towards local military contractor investment. It is hoped that these open negotiations will effectively pave the way for more finely tuned expenditure, especially in areas relating to the army and navy. Simple procurement in the manner of ‘repeat purchasing’ will find no room in this new structure, therefore enhancing both improved competition from contracts, as well as more finely tuned and appealing equipment and facilities – further aiding in drawing in new recruits.

The government has also made its intentions clear with regards to wanting to not only improve and boost all forms of infrastructure within the defence sphere, but also focus on contributing towards an economic stimulus package that will play an active role in domestic job creation.

Figures with regards to deployment of Canadian troops is largely in line with the numbers recorded over the past fiscal year, with the majority of Canadian troops abroad being stationed in Afghanistan. As of Q309, there are currently over 2,900 Canadian soldiers, navy and airforce personnel deployed on international and operational missions. However, on any given day there are close to 8,000 Canadian Defence Force members – which amount to one third of the Canadian Defence deployable force – training for, engaging in or returning from international deployment.

The past quarter has also seen a clear emphasis on the upgrade, and the purchase of, new and technologically advanced equipment and software, to aid the sector during this period of ‘recovery’. A significant deal was underlined with the announcement by the Canadian government detailing a contract signed with the Boeing Company for the purchase of 15 new Chinook helicopters for the national defence system. The contract valued at US$1.2bn comes at a pivotal time for the industry, and will certainly result in much needed relief for Q409. This on the back of a US$135mn investment into 4 Wing Cold Lake (Canada’s busiest fighter base) has publicly driven home the message that the Canadian defence sector will spend whatever is necessary to ensure not only a world class defence sector, but one that is equipped to ensure national safety from threats both domestically, as well as abroad.