How ACDC Will Drive Defence Procurement Reform in Canada
The launch of the Alliance of Canadian Defence Companies (ACDC) signals a new era of industry-led advocacy aimed directly at procurement reform.
ACDC is a new trade association representing Canadian-owned and Canadian-controlled defence manufacturers, technology firms and suppliers. The Alliance promises to lower the barriers to entry for homegrown innovation, fostering a collaborative environment where classified briefings and capability summits replace fragmented bidding, ultimately leading to more integrated and 'export-ready' national capabilities.
A decisive shift toward domestic sovereignty
It comes after Canada’s Prime Minister, Mark Carney, announced a new Defence Industrial Strategy, which marks a decisive end to Canada’s reliance on international providers, shifting the procurement focus back to domestic soil.
As Canada reaches its 2% NATO spending commitment, the new framework establishes a 70% domestic acquisition threshold intended to skyrocket industry revenues by 240%. Beyond capital investment, the strategy mandates a long-term commitment to fleet health, setting ambitious 10-year serviceability goals ranging from 75% to 85% across maritime, land and air platforms.
The result is a projected 50% increase in defence exports and a stabilised workforce of 125,000 careers.
Speaking at its announcement, Prime Minister, Mark Carney said: “The work of defending Canada is the work of building Canada. Security and prosperity are mutually reinforcing foundations of the true North, strong and free.
"Our new Defence Industrial Strategy ensures Canada remains a sovereign nation, in charge of its own destiny. That’s Canada strong, and that’s what we are building together."
Unifying the Canadian industrial base
The strategy also marks an increased investment in procurement, industrial capacity and modernisation efforts, with the ACDC focused on strengthening coordination among Canadian defence firms and providing a unified Canadian industry voice on policy, procurement reform and industrial development.
Representing a critical mass of over 500 firms and 50,000 employees, ACDC has emerged as the unified voice for Canada’s domestic defence industrial base. Membership is high-bar, limited to Canadian-owned and controlled companies.
For procurement stakeholders, this makes ACDC the central hub for identifying partners committed to building sovereign, export-ready capabilities and navigating the new 'Canada-first' acquisition landscape.
“Canada has exceptional defence builders, but they have not always had a unified mechanism to coordinate and advocate collectively,” says co-Chairs Eliot Pence, founder and CEO of Dominion Dynamics, and Paul Ziade, Co-Founder and CEO of North Vector Dynamics, which together provided initial organisational support to establish the Alliance.
“ACDC exists to strengthen domestic capability, support export-ready platforms, and ensure Canadian-controlled companies can have their voices heard and are positioned to deliver as defence investment accelerates.”
Founding members include:
- Dominion Dynamics
- North Vector Dynamics
- ONE9
- Canadian Strategic Missions Corporation
- The Icebreaker
- Canada Rocket Company
- Lodge Systems
- Wuxly
- VizworX
- Nusakan
- aiRadar
- Tacteris
- Valcom
- Reaction Dynamics
- Remote Robotic
- NordSpace
- Convergence Design Services
- ARES®
- Greypoint Industries
- Hawthorn Insights
- Cybeats
- Inertia
- Bloomsco
Building a synchronised ecosystem
The Alliance serves as a comprehensive ecosystem, uniting everything from platform developers and system integrators to specialists in AI, autonomy and advanced energetics. By bridging the gap between dual-use technology leaders and traditional sustainment providers, ACDC fosters a more synchronised domestic supply chain.
This cross-spectrum coordination is designed to help Canadian firms move beyond solo bidding and toward delivering fully integrated national capabilities. For members, this means more than just a seat at the table; it provides a structured pipeline for coalition-building, enabling small-to-mid-sized firms to band together and compete for the most complex defence programmes.