No longer taboo, Canada's defence industry steps into Europe's spotlight
Fearing trade friction with U.S., Ottawa makes unprecedented arms push into Europe
The future of warfare is on sale in Poland this week, wrapped in a bright red Canadian maple leaf.
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future → step → leaf
For the first time, Canada is the "lead nation" at a major European defence trade fair, known as MSPO, in Kielce, Poland.
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Canada → know → Kielce
It's bringing together more than 230 companies and associations at the exhibition’s Canada Pavillion.
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It → bring → Pavillion
The nation’s oversized presence is framed by red and white banners bearing the Government of Canada logo and punctuated by the occasional sound of military bagpipers for added ambience.
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presence → frame → ambience
Europe is rearming, mobilizing up to 800 billion euros ($1.3 trillion Cdn) for defence over the next three years.
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Europe → rearm → years
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One of the pillars of that initiative is known as SAFE, or Security Action for Europe.
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One → prepare → Europe
Canada is the only non-European nation invited to participate, allowing it to bid on European defence contracts as it pledges ongoing support for Ukraine’s defence industrial base.
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it → invite → base
Charles Barlow, the CEO of Ottawa-based Robotics Centre, says he has been staggered by the change in Canada’s positioning and its sudden eagerness to embrace industries that were shunned only a couple of years ago.
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that → base → years
[Federal] trade commissioners wouldn’t help," said Barlow during an interview at his booth at the trade fair.
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Barlow → help → fair
But a trade war with the United States and Canada's push to diversify its key industries away from its largest trading partner has dramatically altered the landscape.
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war → diversify → landscape
"It's a very big breakthrough as we extend our reach into Europe," said Defence Minister David McGuinty, who was in Kielce on Tuesday to officially kick off the event
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who → extend → Tuesday
"We are diversifying, we are taking our next steps, we are open to serious negotiation with the United States, but right now this is about our communities, it's about our workers and it's about giving rise to an expanded and greater energy when it comes to our defence sector," he said.
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he → diversify → sector
Several Canadian exhibitors told CBC News they would not have been able to make the trip to Poland without financial help provided by the Carney government.
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they → tell → government
Now that the taboo on financing, marketing and publicly advocating for defence tech has faded away, the industry is trying to quickly pivot to take advantage.
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industry → advocate → advantage
Barlow’s company, which makes small drones and quad copters, has literally taken off in the last year, thanks in part to new deals with European customers.
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which → make → customers
It's about to move from its current headquarters near Lansdowne Park in Ottawa to a new 32,000-square-foot facility in Kanata.
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It → move → Kanata
Today, we're 56," he said.
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he → say → ?
One reason for the success of his quadcopters is the innovative use of unconventional materials initially demanded by Canada’s Department of Defence that is now attracting interest elsewhere.
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that → demand → interest
"We've actually manufactured [the drone body] out of plywood.
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We → manufacture → plywood
It flies just as well as the carbon-fibre version, which surprised all of us," Barlow said.
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Barlow → fly → us
Other components — such as a camera, guidance system and the payload — are easily snapped onto the lightweight frame.
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components → snap → frame
Government figures suggest Canada’s defence industry contributes $10 billion to the country’s economy and supports more than 81,000 jobs.
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industry → suggest → jobs
The government’s new Defence Industrial Strategy aims to create more than 125,000 new jobs over the next decade.
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Strategy → aim → decade
Red and white banners and maple leaves may help with branding, but cracking the European market is fraught with significant challenges.
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cracking → help → challenges
"It's a hard market," said Christyn Cianfarani, CEO of the Canadian Defence and Security Industries Association (CADSI).
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Cianfarani → say → Association
It's very hard for a small business to sell directly to a very large government.
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business → sell → government
She says government help is often essential.
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help → say → ?
For example, if Canada buys something from a European nation and a Canadian company gets involved in the deal, it thereby becomes part of European supply chains.
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it → buy → chains
"Canada recently announced it is going to make a purchase of submarines and the Germans have committed to pulling Canadian firms, Canadian companies, into their supply chains — that's a great way to do it," Cianfarani said.
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Cianfarani → announce → it
But Cianfarani says the gravitational pull of the United States — far and away the world’s largest defence spender — remains strong.
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pull → say → States
"Pivoting from the United States, where it's over 50 per cent of our market share, is not an easy pivot for Canadian business.
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it → pivot → business
The U.S. is close, it's in the same time zone and our relationship under NORAD has given us privileges.
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relationship → give → privileges
"
David Lord of Zeal Motor, based in Bromont, Que., is among those in Poland trying to navigate that huge leap this week.
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Lord → base → leap
His company makes enormous all-terrain vehicles, known as Fat Trucks.
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company → make → Trucks
With giant buoyant rubber wheels and a flexible chassis, these trucks are highly equipped for Arctic conditions and conducting search and rescue operations in challenging terrain.
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trucks → equip → terrain
Lord says he’s had buyers in Canada, the United States and Great Britain, but the company now has its sights set on Europe, which is proving to be as hard a slog as some of the terrain the Fat Trucks move through.
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Trucks → say → terrain
One of the biggest challenges, he says, is simply showing the vehicle to would-be buyers.
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he → say → buyers
"If you're selling software [to Europe], it's easy.
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it → sell → Europe
But here, you've got to carry a piece of equipment that's 21,000 pounds across [the ocean].
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that → get → ocean
"
"There's nothing like experiencing driving it and conquering terrain, and that's where we're trying to go right now," said Lord.
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Lord → be → terrain
…and 10 more, not listed.
