Canada Launches Defense Investment Agency to Modernize Procurement, Strengthen Sovereignty, and Support Jobs

Olga Nesterova
Oct 2
3 min read

As Canada’s new government rebuilds, rearms, and reinvests in the Canadian Armed Forces, Prime Minister Mark Carney today announced a bold restructuring of the country's defense procurement process. The launch of the Defense Investment Agency (DIA) marks a transformative step in equipping military personnel, boosting industrial innovation, and positioning Canada as a global security partner.

“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.”— Prime Minister Mark Carney

Why It Matters

Defense procurement in Canada has long been fragmented, slow, and burdened by bureaucracy, often leaving the Armed Forces waiting years—sometimes decades—for essential equipment. With global security challenges intensifying, Ottawa is moving swiftly to correct course.

The newly created Defense Investment Agency is intended to:

Streamline procurement across departments
Accelerate delivery of modern equipment
Create high-paying jobs in manufacturing and innovation
Strengthen Canada’s role in NATO and global defense partnerships

A Centralized, Modern Approach

At the heart of this reform is a commitment to clarity, speed, and strategic investment.

1. Faster, Smarter Procurement

The DIA will consolidate defense procurement processes, eliminate redundant approval layers, and house specialized acquisition teams with deep defense-sector expertise.

“We will bring speed and simplicity to the process of arming our military.”— Doug Guzman, Chief Executive Officer, Defense Investment Agency

2. Building Canada’s Defense Economy

Procurement will now be tied directly to industrial growth, leveraging aerospace, shipbuilding, and advanced manufacturing sectors to scale Canadian capabilities and unlock global export potential.

“This agency will drive results – accelerating timelines, strengthening partnerships, and delivering better outcomes for both our Armed Forces and our economy.”— Minister Joël Lightbound, Government Transformation

3. Early Industry Engagement

By fostering early collaboration between the Armed Forces and industry, the agency will ensure operational needs are met with realistic timelines, cost assessments, and technological innovation.

4. Enhanced Allied Cooperation

The agency will align Canada with partners like the UK, Australia, and France, who already operate central procurement bodies. It also advances Canada’s role in the EU’s Readiness 2030 plan and helps fulfill NATO commitments.

“This is a decisive step to equip our soldiers, sailors, and aviators with the tools they need, while investing in a strong defense industrial base.”— Secretary of State Stephen Fuhr, Defense Procurement

Leadership & Vision

To lead the agency, the Prime Minister appointed Doug Guzman, former Deputy Chair of RBC and veteran investment strategist. With over 30 years in capital markets and large-scale project execution, Guzman is tasked with delivering fast, accountable results.

“I am proud to serve Canada at this important time.”— Doug Guzman

The Path Forward

The DIA will be housed within Public Services and Procurement Canada, under the oversight of Secretary of State (Defense Procurement) Stephen Fuhr. The first phase will focus on:

Standing up the agency
Deploying integrated procurement teams
Advancing a wave of high-priority defense contracts

“Canada is meeting this moment with determination and resolve – modernizing our defense capabilities, strengthening our industrial base, and reaffirming our role as a reliable partner in global security.”

Quick Facts

The DIA supports Canada’s pledge to increase defense spending to 2% of GDP ($63B) by 2025–26 and 5% of GDP by 2035
The Canadian defense industry contributes $10B to GDP and supports 81,000+ jobs
The agency will prioritize dual-use infrastructure, benefiting both the military and Canadian communities

“These targeted investments will build a procurement system that meets the needs of today – and tomorrow.”— Minister David McGuinty, National Defense