How does a regional machine shop or precision manufacturer transition from making commercial parts to building components for the global aerospace and defence supply chain? That was the central question driving the Pathways to Canada’s Defence Supply Chain Workshop, hosted on Wednesday, October 14, 2026, at the Four Points by Sheraton in Thorold. The event marked a significant step in the evolution of the Niagara defence industry, bringing together local businesses and global primes to demystify the procurement process.
The event, hosted by Niagara Region Economic Development in partnership with the Niagara Industrial Association, brought together local small and medium-sized enterprises (SMEs), industry representatives, and government partners to explore how Niagara companies can capture a share of Canada’s rapidly expanding defence sector.
Supported by the Ontario Ministry of Economic Development, Job Creation and Trade (MEDJCT) and the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), the morning session focused on helping manufacturers understand procurement opportunities, supply-chain requirements, and the specific steps needed to compete for defence-related business.
Among the confirmed presenters and industry representatives were Babcock International Group, Boeing Defence, Space & Security, General Dynamics Mission Systems–Canada, and RTX (representing Collins Aerospace, Pratt & Whitney, and Raytheon). Representatives from Public Services and Procurement Canada (PSPC) were also on hand to provide federal context. As noted by organizers, the defence-prime representatives joined virtually for a panel discussion and Q&A session.
For Niagara’s manufacturing community, access to these conversations could help local companies identify new customers, understand the requirements of major contractors, and explore opportunities beyond their traditional markets.
Connecting Niagara Manufacturers with Major Contractors
The workshop reflects a growing effort to position Niagara as a destination for advanced manufacturing, aerospace, defence-related production, and dual-use technologies.
The region already has an established industrial base, including companies involved in precision machining, metal fabrication, specialized materials, automation, and engineering services. Some of these capabilities may be relevant to defence supply chains, where major contractors rely on networks of qualified suppliers to produce components, equipment, and supporting technologies.
However, entering the defence market can involve requirements that differ significantly from those in conventional commercial manufacturing. Companies may need to demonstrate specific quality standards, production traceability, security compliance, and the ability to meet demanding technical specifications. Understanding how procurement works and establishing relationships with potential buyers are therefore important early steps.
The workshop provided an opportunity to explore those requirements directly with major industry players, covering practical topics such as navigating federal procurement through the CanadaBuys portal and preparing companies to work with defence primes.
Understanding Canada’s Industrial and Technological Benefits Policy
One of the key subjects discussed was Canada’s Industrial and Technological Benefits (ITB) Policy.
The policy generally requires companies awarded certain major defence and Canadian Coast Guard procurement contracts to undertake business activity in Canada equal to the value of the contract. This can create opportunities for Canadian companies to participate in the supply chains associated with major defence procurements.
For Niagara manufacturers, understanding the policy could help identify where local capabilities align with contractors’ Canadian industrial commitments. Workshop attendees gained insights directly from local SMEs already participating in ITB-related work to understand how these commitments function in practice.
The policy does not guarantee contracts for regional businesses. Companies must still meet relevant technical, commercial, and procurement requirements. Nevertheless, understanding how these commitments work can help manufacturers identify potential routes into the market.
Niagara’s Industrial Network Takes a More Active Role
The Niagara Industrial Association plays an important role in bringing manufacturers and related service providers together across the region. The membership-based organization advocates for local industry, promotes manufacturing, and supports business development through relationships with industry, government, and community partners.
Its collaboration with Niagara Region Economic Development on the defence workshop reflects an effort to connect the region’s existing industrial capabilities with emerging markets. Rather than assuming that local manufacturers already understand the defence sector, the initiative helps them explore what participation could involve and where further support may be available.
For smaller businesses, those connections can be particularly valuable. Establishing relationships with major contractors and understanding procurement requirements may help companies determine whether investing in new capabilities or certifications makes commercial sense.
Participants See Opportunities for Niagara
The workshop has also attracted positive feedback from people working in the region’s economic development community. Laura Illingworth of the Niagara Industrial Association reflected on the opportunity in a public LinkedIn post following the workshop.
“As Canada’s defence sector continues to grow, there are increasing opportunities for Niagara manufacturers and suppliers to participate in national and global supply chains,” Illingworth wrote.
She also highlighted the importance of understanding procurement, Industrial and Technological Benefits opportunities, and the requirements of major defence contractors. Her comments underscore the potential value of bringing local manufacturers into direct contact with the organizations and information needed to evaluate opportunities in the sector. The next step is translating that knowledge into commercial relationships, supplier qualifications, and new business.
Why Niagara Could Be Well Positioned
Niagara’s potential extends beyond manufacturing alone. Its location along the Canada–United States border, established transportation connections, and access to industrial infrastructure provide advantages for companies serving North American markets.
The region’s manufacturing capabilities could also complement opportunities in aerospace, marine industries, logistics, industrial automation, and technologies with both civilian and defence applications. Dual-use technologies are particularly relevant because they can serve commercial customers as well as defence or public-sector users. Examples may include robotics, autonomous systems, advanced sensors, industrial software, and specialized manufacturing technologies.
Niagara’s postsecondary institutions and applied research capabilities could also support workforce development and innovation as businesses explore these markets.
From Conversations to Contracts
The workshop comes as Canada seeks to strengthen domestic defence capabilities and improve the resilience of its industrial supply chains. The federal government’s Regional Defence Investment Initiative is one example of the support available to eligible businesses and regional organizations working to expand defence-related industrial capacity.
For Niagara companies, the challenge is determining which opportunities fit their capabilities and what investments may be needed to compete. That process could involve developing new products, upgrading production equipment, obtaining relevant certifications, hiring specialized workers, or establishing relationships with established defence suppliers.
The economic benefits will ultimately depend on whether businesses can convert these opportunities into contracts, expanded production, investment, and employment. For the region, the workshop represents a practical step towards connecting its manufacturing base with an industry that could provide additional markets for qualified local suppliers.
Niagara’s opportunity is not limited to building finished military equipment. It is also about ensuring that the region’s manufacturers, engineers, and technology businesses are ready to contribute to the broader supply chains that make Canada’s defence industry possible.
