Prime Minister Carney Launches Defence Investment Agency to Overhaul Military Procurement

New agency aims to accelerate procurement, strengthen defence supply chains, and create high-paying Canadian jobs.

Ottawa — Prime Minister Mark Carney has announced the creation of the Defence Investment Agency, a new federal body designed to streamline Canada’s military procurement system and strengthen the country’s defence industrial base.

The agency will centralize procurement processes, reduce red tape, and prioritize domestic manufacturing, ensuring the Canadian Armed Forces (CAF) receive equipment faster while creating new opportunities for Canadian workers and industries.

Why the Agency Was Created

Canada’s defence procurement has long been criticized as fragmented and slow, with the CAF waiting years — sometimes decades — for critical equipment. The new agency will consolidate approvals, involve industry earlier in planning, and better align military acquisitions with Canada’s economic and industrial goals.

Prime Minister Carney said the reform is essential to Canada’s sovereignty and global role:

“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. 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.”

Key Priorities of the Defence Investment Agency

• Faster Procurement: Centralized approvals and specialized staff will speed up timelines and reduce duplication.

• Industrial Benefits: Defence spending will be tied directly to domestic jobs and innovation in aerospace, shipbuilding, and advanced manufacturing.

• Stronger Partnerships: The agency will improve engagement between the CAF and Canadian industry while aligning procurement with allies like the UK, France, and Australia.

• Global Security Role: Canada will reinforce its leadership in NATO and contribute to the EU’s Readiness 2030 plan, which strengthens allied defence supply chains.

Canada’s new government is rebuilding, rearming, and reinvesting in our Canadian Armed Forces.

The new Defence Investment Agency will transform the way we buy equipment, build domestic supply chains and manufacturing, and help create thousands of high-paying careers. pic.twitter.com/3gDgYcTvEw

— Mark Carney (@MarkJCarney) October 2, 2025

Leadership Appointment

Carney also announced that Doug Guzman, former Deputy Chair of the Royal Bank of Canada, will serve as the agency’s Chief Executive Officer. Guzman’s three decades of experience in finance and project execution are expected to be critical in building the agency’s capacity.

Other senior leaders underscored the urgency of the initiative:

• Joël Lightbound, Minister of Government Transformation, Public Works and Procurement, called it “a bold step forward” to modernize procurement.

• Stephen Fuhr, Secretary of State for Defence Procurement, emphasized that the agency will “unlock opportunities for Canadian industry and workers.”

• David J. McGuinty, Minister of National Defence, said the initiative ensures the CAF has “secure, assured, and timely access to the capabilities they need.”

Defence Spending Targets

The Defence Investment Agency will help Canada meet its defence spending goals:

• 2% of GDP by 2025-26 (approximately $63 billion)

• 5% of GDP by 2035 under NATO’s Defence Investment Pledge

Canada’s defence industry currently contributes nearly $10 billion to GDP and supports more than 81,000 jobs. Officials expect the new agency to boost both figures significantly.

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