Partnerships In Procurement: Understanding Indigenous Business Engagement in Canada’s Defence Industry

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Partnerships In Procurement: Understanding Indigenous Business Engagement in Canada’s Defence Industry

Published: November 4, 2025

Defence procurement has significant potential to support Indigenous businesses and economic development. In the fiscal year 2021–2022, the Government of Canada spent an estimated $22.2B on procurement contracts; however, Indigenous businesses remain underrepresented in the defence sector relative to their industry makeup and overall capabilities.

This research, in collaboration with Indigenous Services Canada, examines the barriers to entry and supports available to Indigenous entrepreneurs looking to engage as defence contractors. To fully realize this potential for Indigenous businesses, there is a need to increase their direct engagement with defence contracts and develop key industrial capabilities in areas such as emerging technologies (advanced materials, artificial intelligence, clean technology, cyber resilience, remotely-piloted systems and autonomous technologies, and space systems) and leading competencies/critical industrial services (aerospace systems and components, armour, defence systems integration, electro-optical/infrared systems, ground vehicle solutions, in-service support, marine ship-borne mission and platform systems, munitions, shipbuilding/ design/engineering services, sonar and acoustic systems, and training in simulation).

These opportunities could significantly benefit Indigenous entrepreneurs and provide alternative means of economic development for Indigenous communities in remote areas with limited access or interest in natural resources or tourism opportunities.