Canada's Defence Ambitions Stalled by Procurement Delays and Talent Shortages, KPMG Study Finds
Event summary
- 63% of Canadian business leaders cite complex procurement and funding processes as major delays for capital projects.
- Talent shortages and limited access to capital are hindering project delivery and innovation.
- KPMG's National Interest & Defence Study (NIDS) surveyed 70 leaders across defence, capital, and infrastructure sectors.
- Canada's Budget 2025 and Defence Industrial Strategy (DIS) aim to strengthen domestic industrial capacity.
- Indigenous partnership is highlighted as critical for project delivery and governance.
The big picture
Canada's defence ambitions are facing execution hurdles despite strong fiscal capacity and strategic priorities. The country's ability to deliver projects at scale will determine its long-term economic and strategic advantage, especially amid rising geopolitical instability and increasing defence spending by NATO allies. The Defence Industrial Strategy (DIS) and Budget 2025 signal a shift toward strengthening domestic industrial capacity, but success hinges on overcoming procurement delays, talent shortages, and funding gaps.
What we're watching
- Execution Risk
- Whether Canada can accelerate project delivery to meet defence ambitions amid procurement and funding challenges.
- Indigenous Partnerships
- The role of Indigenous groups in governance and financing for defence and infrastructure projects.
- Capital Access
- How initiatives like the NATO Defence, Security and Resilience Bank (DSRB) will attract private investment.
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