Seizing defence opportunities: How National Bank can help your business grow
Canada's defence and security sector is expanding rapidly, creating opportunities for manufacturers, technology firms, aerospace companies and other businesses that may not traditionally view themselves as part of the defence ecosystem. With that shift, a new landscape opens up that is full of new challenges, evolving policies, and greater pressure.
Canada is on a path to spend 3.5% of Gross Domestic Product (GDP) on core defence spending, and an additional 1.5% of GDP on defence and security-related investments by 2035. This long-term commitment brings a growing demand for domestic capabilities, expansion of the supply chain and ultimately, the need for more private sector participation in national defence.
While the opportunity is substantial, companies face barriers to accessing it. Success increasingly depends on more than financing alone. Companies need access to capital, expertise, and the right network of partners. That's where National Bank can help. Our approach is designed to help organizations navigate complexity, build connections, and position themselves for long-term success.
From opportunity to execution
Industry growth is changing the sector in several ways that businesses need to consider. Here are three key areas to monitor so you can adapt your strategies for sustained momentum in a complex, ever-changing environment.
Capital needs
The sector is moving from predictable procurement cycles into continuous, multi-phase investments. Defence companies have long needed quick access to capital, but now successful companies need higher volumes sustained over longer investment timelines, often years before they’ll even start receiving revenue.
Instead of looking at individual transactions when it comes to financing, think more strategically about what your company needs to build resilience, adapt to change and grow sustainably. How will you finance your working capital against delayed procurement timelines? What resources will you need for expansion or acquisition? Are there ways you can better manage your risk? Our experts know the unique financing challenges of the industry and support businesses with tailored solutions and advice.
Supply chain evolution
The federal government wants more defence capability to be developed, produced and sustained domestically. This emphasis on supply chain sovereignty requires the participation of dual-use firms, especially in areas like aerospace, digital systems, sensors, specialized manufacturing and autonomous systems. There are programs to support such companies, including a defence concierge service, as part of Canada’s Defence Industrial Strategy.
Dual-use companies have the opportunity to enter new supply chains if they can prove their readiness and demonstrate their relevance to the sector. Early conversations with financial partners can help identify gaps and build a stronger case with government buyers, primes and investors. At National Bank, we facilitate introductions to help organizations strengthen their position within the value chain and find emerging opportunities.
Strategic support
In an increasingly interconnected defence economy, banking is becoming less about funding individual transactions and more about enabling growth across the system.
At National Bank, we continue to adjust our approach in line with how the defence sector operates. Our framework is built on four pillars:
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Simplify: Make the defence environment easier to navigate
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Connect: Unlock access to the right ecosystem
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Support: Help companies overcome growth barriers
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Sustain: Support long-term growth and adaptation
The defence opportunity is real, accelerating and increasingly strategic for Canadian businesses. Companies that prepare early, have the right capital structure, build relationships and manage risk will be better positioned to compete as Canada’s defence economy expands. We are committed to strengthening industrial resilience and helping Canadian companies navigate emerging opportunities responsibly and effectively.
Wondering whether your business is positioned to benefit from emerging defence opportunities? Speak with a National Bank specialist to explore your growth strategy.