Mark Norman: An Opportunity for Growth: Defence Insider

This of course transpired before the inauguration of President Trump and his near continuous rants about tariffs, territorial annexations, and further increases in NATO defence spending targets. These recent developments reinforce the compelling need for us to get our act together. We are now, in essence, “at war” with our closest friend, neighbour, ally, and trading partner. We must however look well past the ongoing tactical “skirmishes” that dominate our attention – no matter how distracting they might be – as this is not the actual fight we are in.

I believe that this most recent attack is simply a ranging salvo in advance of a more comprehensive set of actions. I further contend that the intended US end-state is much more strategic than simple disruption of CAN-US trade; they aim to fundamentally reset the economic and geo-strategic realities that have shaped our collective behaviour for decades. We need not like or even agree with their arguments – or those who present them – but we must understand and respect their arguments nonetheless. Our reactions – in my opinion – do not reflect this deeper appreciation. We are fighting the wrong fight, and adding significant risk to an already dangerous situation as a result…but I digress.

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AN OPPORTUNITY –NOT A THREAT

We must nonetheless put our ongoing discussion of Canadian defence industry in this rapidly evolving context. I submit therefore that the current situation is actually an opportunity for Canadian defence industry and not a threat.

The primary focus at the moment, in the specific context of defence industry, appears to be how quickly we can meet – or not – the 2% spending target (especially given the likely increase to that requirement in the near future). A variety of potential tactics to solve this pressing problem in the short-term are being tossed around. However, what we don’t appear to be discussing is HOW to make our increased defence spending sustainable and value-added over the long-term, rather than it simply being yet another recurring (and burgeoning) “cost” to the taxpayer. Reaching the spending target itself is an understandable short-term distraction; optimizing the underlying value for Canada over the medium to long-term however, is the real opportunity space. For this to work we must abandon our obsession with US defence & security technology, immediately eliminate inefficient layers of bureaucracy such as the current ITB process and implement more integrated approaches (including sweeping tax reforms) to incentivize and bolster real opportunities for Canadian industry.

The history of Defence Industry in Canada is both interesting and alarming. For a variety of reasons, we have a tradition of impressive innovation; while sadly we also undermine our own potential. Beyond our unhelpful national penchant for modesty and self-criticism, we have systematically punished our own defence industry. Notwithstanding the damage done over time, there are impressive examples of Canadian innovation – and technical leadership – in the defence sector. Sadly, there could be so many more successes to celebrate if we only got out of own way.

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NATIONAL SUCCESSES

Although not necessarily based on empirical evidence, there are some advantageous themes from our national successes that I believe are worthy of note.

First, necessity is (in fact) the mother of invention (or more accurately, innovation). Often unique Canadian requirements, resource constraints, and a culture of problem-solving have forced us to be smarter than others in solving our own problems. Second, size matters, and although we often see the relatively smaller scale of our efforts as being a disadvantage, it does give us an inherent agility that others might lack. Third, the lack of systemic inertia or bias existent elsewhere tends to permit a more open mind to problem-solving.

Beyond innovation and technology, we also have a proud history of engineering and manufacturing that have provided Canada not only with good jobs and economic benefits, but more importantly with a degree of industrial resilience and independence. Extensive integration with US supply-chains, and excessive dependence on US ITAR and FMS-based solutions, are examples of the “double-edged sword” of our recent practices. We need to accept the new reality – the marriage is over – and set our own course…quickly!

Ultimately, our key advantage is that we are Canadian. This isn’t some misplaced sense of faux patriotism, but instead a genuine admiration for who we are and what we can potentially accomplish. Nobody should have a more vested interest in solving our defence and security challenges than us. Recent events have highlighted our glaring shortcomings in many important areas. We should instead embrace this as an unprecedented opportunity to not only address our shortcomings but also to build a vibrant, sustainable, and independent defence industry.

Perhaps now – in the face of these existential and openly anti-Canadian threats from south of the border – we might actually have the courage to do more than just boo our American counterparts at sporting events or cancel our Amazon Prime memberships. It’s time to become a serious country!

In the next column I intend to explore “Options for Canada”.

VAdm (Ret’d) Mark Norman is a former Commander of the RCN and Senior Defence Strategist with Samuel Associates. The views expressed here are his own and do not necessarily reflect a CDR editorial position.