As Canada prepares for a significant expansion of defence spending, Southeast Alberta is uniquely positioned to become one of the country's most attractive destinations for defence innovation, testing, manufacturing, research, and investment.

A new report from the Canadian Chamber of Commerce's Business Data Lab, Deepening Our Defence: Canada’s Ambitious Task to Expand the Defence Industrial Base, highlights Canada's growing need to strengthen domestic defence capacity, supply chains, infrastructure, and industrial capabilities. For Southeast Alberta, the findings reinforce something local business leaders have recognized for years: our region already possesses many of the assets needed to support Canada's next generation of defence and security priorities.

The question is no longer whether there is opportunity. The question is whether we are ready to seize it.

Defence Spending is Economic Development

When most people hear the word "defence," they think of soldiers, military equipment, and national security. Today's defence economy is far broader. Modern defence investment drives growth in:

• Manufacturing
• Aerospace
• Drones and autonomous systems
• Artificial intelligence
• Cybersecurity
• Construction
• Engineering
• Transportation and logistics
• Telecommunications
• Clean technology
• Research and development

Many of the companies benefiting from future defence investments may never manufacture a military product. Instead, they will provide the infrastructure, technology, services, testing environments, and supply chain solutions needed to support a modern defence ecosystem.

For regions that can position themselves strategically, defence investment has become a powerful economic development opportunity.

Why Southeast Alberta Stands Out

Few regions in Canada can offer the combination of assets already found in Southeast Alberta. The region is home to:

• CFB Suffield, Canada's largest military training area
• Defence Research and Development Canada (DRDC) Suffield
• British Army Training Unit Suffield (BATUS)
• The Foremost UAS Test Range
• Beyond Visual Line of Sight drone testing capabilities
• Significant airspace and open testing environments
• Available industrial land
• Competitive operating costs
• Strong transportation connections
• A growing aerospace and autonomous systems cluster

Together, these assets create a rare environment where defence research, testing, innovation, training, and commercialization can occur within a single region. For investors seeking locations that can support emerging defence technologies, few places in Canada can match Southeast Alberta's combination of space, infrastructure, expertise, and accessibility.

A Natural Home for Defence Innovation

Canada's future defence needs are increasingly focused on technologies that are already emerging across the Prairies. These include:

• Uncrewed aerial systems (UAS)
• Autonomous vehicles
• Artificial intelligence
• Remote sensing
• Environmental monitoring
• Advanced communications
• Robotics
• Data analytics
• Secure supply chain technologies

Many of these technologies have both civilian and defence applications. An agricultural drone company today could become part of tomorrow's defence supply chain. A software company designing predictive analytics may find opportunities serving public safety, emergency management, border security, or military applications. A manufacturer supporting energy or agricultural sectors may already possess the capabilities needed to enter defence markets. This convergence of industries creates opportunities for small and medium-sized businesses that may not currently view themselves as part of the defence sector.

Why Investors Should Pay Attention

As global security priorities shift, countries are increasingly making strategic investments closer to home. This trend is expected to generate demand for:

• New production facilities
• Testing environments
• Research partnerships
• Defence-adjacent technology companies
• Manufacturing capacity
• Skilled workforce development
• Infrastructure expansion

Southeast Alberta offers investors several competitive advantages:

• Space to Grow: Unlike major urban centres where industrial land is increasingly constrained, Southeast Alberta offers room for expansion and new development opportunities.
• Lower Operating Costs: Companies can access competitive land, facilities, and operating expenses while maintaining access to national and international markets.
• Strategic Defence Assets: Few regions possess direct proximity to military, research, and testing assets on the scale available through CFB Suffield and DRDC Suffield.
• Innovation Potential: Emerging technologies can move more rapidly from concept to testing and commercialization when researchers, industry, and end-users are located within the same ecosystem.

Opportunities for Local Businesses

Not every opportunity will involve large defence contractors. In fact, many opportunities will be found within existing local companies. Businesses should begin asking:

• Could our products or services support defence supply chains?
• Are there procurement opportunities we should explore?
• Could we partner with larger defence firms?
• Do our technologies have both civilian and defence applications?
• Are there certifications or security clearances we should pursue?
• Could we participate in research, testing, demonstration, or pilot projects?

The businesses that begin exploring these questions today will be better positioned as future opportunities emerge.

Building a Defence Innovation Ecosystem

The greatest long-term opportunity may be the development of a regional defence innovation ecosystem. Successful defence clusters are built around collaboration. Industry, government, researchers, investors, post-secondary institutions, entrepreneurs, and economic development organizations work together to create environments where ideas can move from concept to commercialization. Southeast Alberta already possesses many of the foundational assets needed to build such an ecosystem.

The next step is ensuring those assets are coordinated, promoted, and connected to national investment and procurement opportunities.

Why This Matters to Canada's Future

Canada's defence investments are about more than strengthening national security. They are also about strengthening domestic resilience, innovation, supply chains, and economic competitiveness. Communities that can support those objectives will help shape where future investment flows.

Southeast Alberta is well positioned to be one of those communities. With world-class testing environments, established military and research assets, aerospace and autonomous systems expertise, available land, and a growing culture of innovation, the region offers something increasingly valuable: the ability to develop, test, build, and scale the technologies that will define the future.

The Bottom Line

For decades, Southeast Alberta has quietly developed assets that are now becoming strategically important on a national scale. As Canada deepens its defence capabilities and seeks to strengthen domestic industrial capacity, our region has an opportunity to become more than a participant in the conversation.

We can become a destination. For investors, innovators, manufacturers, and entrepreneurs looking to be part of Canada's next wave of defence-related growth, Southeast Alberta may not simply be a good option. It may be one of the best opportunities in the country.

Resources and Further Insights:

The Southeast Alberta Chamber of Commerce is a member of the Canadian Chamber of Commerce Defence and Security Committee and will continue to provide updates on any advocacy and opportunities. 

Community Futures Entre-Corp is hosting a Defence Forum on October 29 | Register to attend

Medicine Hat Economic Development has identified Aerospace and Defence as a strategic sector for our region and developed a sector profile along with a State of the Industry Report.

The Centre for Innovation (C4i) at Medicine Hat College has brought together leaders and stakeholders from across defence, innovation, industry, academia, and procurement to help shape the future of defence innovation and collaboration in Southeastern Alberta.

For businesses: 

1. Attend events and stay informed through the Chamber Subscriptions and the APEX Regional Innovation Network
2. Review the Government of Canada Defence Investment Plan
3. Register for procurement platforms and browse tender opportunities
4. Find out about funding opportunities
5. Explore security clearance requirements