Prime Minister Carney Launches New Defence Investment Agency to Rebuild, Rearm, and Reinvest in the Canadian Armed Forces Faster
December 10, 2025
As Canada’s new government rebuilds, rearms, and reinvests in the Canadian Armed Forces, we are focused on providing the women and men in uniform with the equipment they need, when they need it. With the right tools in their arsenal, we will reinforce Canada’s sovereignty, create high-paying new careers for Canadian workers, and strengthen our defence partnerships with Allies.
Canada’s defence procurement is currently fragmented across several departments, slow to consult industry, and too complicated to respond to rapidly evolving military needs – leaving the Canadian Armed Forces waiting years, sometimes decades for critical equipment. To protect our sovereignty and bolster our industrial capacity, the Prime Minister, Mark Carney, today announced the creation of the new Defence Investment Agency, which will overhaul and streamline Canada’s defence procurement. This new agency will build domestic manufacturing and supply chains, and create new careers, so the Canadian Armed Forces have the world-class equipment they need.
First, the Defence Investment Agency will consolidate procurement processes – removing duplicative approvals and red tape, accelerating defence procurement, and providing industry with greater clarity and certainty. With a centralised process of review and approval, procurements will advance faster. Specialised staff at the agency will have expertise in defence acquisitions, ensuring focused planning and execution.
Second, the agency will tie procurement more strategically to domestic industrial benefits – creating new careers, growing our economy, and supercharging innovation in aerospace, shipbuilding, and advanced manufacturing. By leveraging defence procurement as investments in Canadian workers, companies, and technologies, the agency will help Canadian firms scale up, develop cutting-edge capabilities, and compete globally. In addition to this agency, the government will also continue to prioritise investments in dual purpose infrastructure that delivers immediate benefits for both our military and Canadians. In doing so, it will not only equip the Canadian Armed Forces with world-class tools, but also position Canada as a leader in industries critical to security and prosperity.
Third, the agency will ensure earlier engagement between the Canadian Armed Forces and Canada’s defence industry, so the military can underscore operational needs, and industry can provide realistic assessments of timelines, costs, and technological options. Early engagement will also enable Canada to better anticipate future needs and build industrial capacity ahead of time, at speed and scale.
Finally, the agency will align Canada more closely with partners such as the United Kingdom, Australia, and France, who already have dedicated procurement bodies, making joint defence purchases and partnerships easier and more efficient. The new agency also positions Canada as a leader in the European Union’s Readiness 2030 plan, a multilateral effort with our European allies to reinforce defence supply chains and industrial capacity among allied nations. The Defence Investment Agency will prioritise partnerships and investments to meet 2% of GDP on defence spending this year and meet NATO’s 5% Defence Investment Pledge by 2035.
To spearhead this mission, the Prime Minister announced the appointment of Doug Guzman as Chief Executive Officer of the Defence Investment Agency. Having most recently served as Deputy Chair of the Royal Bank of Canada (RBC), Mr. Guzman brings three decades of experience in investment and finance, including leadership roles at RBC and Goldman Sachs. His expertise in capital allocation, project execution, and large financial projects will be instrumental in accelerating procurement and growing our defence industrial base.
The global landscape is rapidly changing, and Canada is meeting this moment with determination and resolve – modernising our defence capabilities, strengthening our industrial base, and reaffirming our role as a reliable partner in global security.
Quotes
“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.”
The Rt. Hon. Mark Carney, Prime Minister of Canada
“This is a tremendous opportunity for partnership between government and businesses. 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. I am proud to have the opportunity to serve Canada at this important time.”
Doug Guzman, Chief Executive Officer, Defence Investment Agency
“Canada is rebuilding, rearming, and reinvesting in our military. 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.”
The Hon. Joël Lightbound, Minister of Government Transformation, Public Works and Procurement
“Canada faces a new security reality that reinforces the need for the Canadian Armed Forces to be agile, well equipped, and future-ready. 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. With this new agency, our government is taking a decisive step to equip our soldiers, sailors, and aviators with the tools they need, while investing in the growth of a strong defence industrial base.”
The Hon. Stephen Fuhr, Secretary of State (Defence Procurement)
“Canada is increasing and accelerating our defence investments, delivering on our international commitments. These targeted investments in the Canadian industry will build a procurement system that meets the needs of today. 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.”
The Hon. David J. McGuinty, Minister of National Defence
Quick facts
- Today’s announcement builds on the Government of Canada’s commitment to increase defence spending to 2% of GDP, or approximately $63 billion, in 2025-26, and to 5% of GDP by 2035.
- The Defence Investment Agency’s first phase of operations will focus on standing up the organisation, deploying integrated procurement teams, and advancing a first wave of high-priority defence procurements.
- Housed within Public Services and Procurement Canada, the special operating agency will be overseen by the Secretary of State (Defence Procurement), Stephen Fuhr.
- The Canadian defence industry contributes nearly $10 billion to GDP and supports over 81,000 jobs.
