October 2, 2025 | Ottawa
Prime Minister Mark Carney today announced the creation of a new Defence Investment Agency—a central body tasked with overhauling Canada’s fragmented and slow-moving military procurement system. The agency will be responsible for ensuring the Canadian Armed Forces (CAF) receive critical equipment on time, while also bolstering domestic industry, creating jobs, and reinforcing Canada’s global defence partnerships.
The launch marks one of the most significant defence reforms in decades. For years, procurement has been spread across multiple departments, resulting in delays that left CAF personnel waiting years, sometimes decades, for urgently needed equipment. The new agency aims to change that.
“In a dangerous and divided world, Canada’s new government is ensuring the Canadian Armed Forces get the equipment they need, when they need it,” said Prime Minister Carney. “The new agency will bolster our defence industrial capacity, create new careers, and ensure that in this new era, Canada’s leadership is not defined by the strength of our values, but also by the value of our strength.”
The Defence Investment Agency will consolidate procurement processes, cutting down on duplicated approvals and bureaucracy. Specialized staff with expertise in defence acquisitions will guide procurement projects from start to finish, helping accelerate delivery timelines and giving industry more certainty.
The agency will also ensure procurement directly supports Canadian workers and businesses. By tying major defence projects to domestic manufacturing, innovation, and supply chain growth, the government aims to “supercharge” industries such as aerospace, shipbuilding, and advanced manufacturing.
“Canada is rebuilding, rearming, and reinvesting in our military,” said Joël Lightbound, Minister of Government Transformation, Public Works and Procurement. “The establishment of the Defence Investment Agency represents a bold step forward, ensuring that our procurement system keeps pace with today’s security challenges and aligns with the ambitions of our defence strategy. This agency will drive results – accelerating timelines, strengthening partnerships, and delivering better outcomes for both our Armed Forces and our economy.”
Another central pillar of the agency is earlier and closer collaboration between the CAF and the defence industry. Officials say this will allow the military to communicate its operational needs while industry can provide realistic cost, technology, and timeline assessments. The government believes this proactive model will help Canada anticipate future threats and build capacity ahead of time.
“Canada faces a new security reality that reinforces the need for the Canadian Armed Forces to be agile, well equipped, and future-ready,” said Stephen Fuhr, Secretary of State for Defence Procurement. “It is a privilege to lead the Defence Investment Agency, which will streamline procurements, unlock opportunities for Canadian industry and workers, and ensure our military is prepared to defend our sovereignty.”
The Defence Investment Agency will also align Canada with allies such as the United Kingdom, Australia, and France, which already operate dedicated procurement bodies. Officials say this will make joint defence purchases and multinational projects more efficient, while also positioning Canada to play a leading role in the European Union’s Readiness 2030 plan.
David J. McGuinty, Minister of National Defence, emphasized the importance of meeting Canada’s global commitments: “Canada is increasing and accelerating our defence investments, delivering on our international commitments. The creation of the Defence Investment Agency is an important step in ensuring the Canadian Armed Forces have secure, assured, and timely access to the capabilities they need to defend Canada and support our Allies and partners.”
To lead the new agency, Prime Minister Carney appointed Doug Guzman, former Deputy Chair of the Royal Bank of Canada. Guzman, who also held senior roles at Goldman Sachs, brings decades of experience in finance and large-scale project execution.
“This is a tremendous opportunity for partnership between government and businesses,” Guzman said. “All at once, we can drive investment, strengthen our national security, and meet our international commitments. We will bring speed and simplicity to the process of arming our military, while building Canada’s industrial capacity.”
The agency will begin operations this year with an initial focus on standing up integrated procurement teams and advancing a first wave of high-priority defence projects.
According to government figures, Canada’s defence industry currently contributes nearly $10 billion to GDP and supports more than 81,000 jobs. With the new Defence Investment Agency in place, Ottawa expects those numbers to grow significantly.
The government reaffirmed its commitment to increase defence spending to 2% of GDP (approximately $63 billion) by 2025–26, and to reach 5% of GDP by 2035 in line with NATO’s Defence Investment Pledge.
“The global landscape is rapidly changing, and Canada is meeting this moment with determination and resolve,” Prime Minister Carney said. “We are modernising our defence capabilities, strengthening our industrial base, and reaffirming our role as a reliable partner in global security.”
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