Defense Industry
When Wilfrid Laurier said "The 20th Century belongs to Canada" there was still hope. Now, as the 20th century is over, this prediction fell short. But there was a time where Canada's future in the military and in aviation was going to be bright. Canada would become a leader in those fields and would be, as many say, would be richer now. But Canada failed and most will point to one man, the 13th Prime Minister, The Right Honourable John George Diefenbaker. Why? Because he canceled a revolutionary program in aviation. He Cancelled the AVRO Arrow.
The composition of the Canadian defense industry is mainly companies that serve market niches and have other commercial interests outside defense. The industry and its companies have developed in this manner due to trade agreements with the United States, such as the Defense Development Sharing Agreement (DDSA) and the Defense Production Sharing Agreement (DPSA). Because of this growth style and the relatively small domestic defense market, much of the defense R&D funding has pushed along other commercial technological development. With restraints on defense spending growing, concerns of a chain reaction that may impede growth in related sectors continue to develop. One possible bright spot, however, is the creation of the new Technology Partnerships Canada fund.
Canada's defense sector consists largely of electronics companies and aerospace firms that produce sub-systems or sub-assemblies for inclusion in final products. They cover areas of the industry such as: communications and radar equipment; navigation systems; sensors; computer systems and software; anti-aircraft defense systems; major sub-assemblies (wings, fuselage components, flight controls, landing gear); and, other special purpose electronic components. Some sectors, such as ammunition and light armored vehicles, have a large percentage of goods produced by sole-source contract holders or by companies that possess a large share of the market.
Foreign interest in the Canadian defense market was evident in two fashions: suppliers and ownership. Foreign sources account for approximately 60 percent of the supply, with the United States representing the vast majority. Parent companies of firms operating in the Canadian defense industry are primarily Canadian or U.S.-owned. Nonetheless, companies of third countries operate in Canada as well. The major international competitors in this market include divisions of General Motors, Boeing, Pratt and Whitney Canada Inc., Bell Helicopter Textron, Rolls-Royce Canada Limited and McDonnell Douglas Canada Limited. The largest domestic suppliers of defense equipment include CAE Electronics Limited, Canadian Marconi Company, Computing Devices Company, Spar Aerospace Limited and Bombardier Inc.-Canadair Limited (including De Havilland).
