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New group aims to help domestic SMEs make some noise in Canada’s defence industry

February 24, 2026

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A group of Canadian defence technology companies has banded together to give rising industry rock stars a stronger voice in issues such as procurement reform and industrial policy. The Alliance of Canadian Defence Companies (ACDC) officially launched on Tuesday morning. The new group bills itself as “an industry-led trade association” that will lobby government on its members’ behalf and “foster deeper co-ordination across the defence supply chain” as Canada looks to beef up its domestic defence capabilities. “Canada has exceptional defence builders, but they have not always had a unified mechanism to co-ordinate and advocate collectively,” co-chairs Eliot Pence, founder and CEO of Ottawa-based Dominion Dynamics, and Paul Ziade, co-founder and CEO of Calgary’s North Vector Dynamics, said in a release. “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.” The organization’s roughly two dozen founding members consist mostly of small and medium-sized builders and suppliers of defence technology. They include a number of eastern Ontario-based organizations, such as Dominion Dynamics, Ottawa-based defence VC fund One9 and Arnprior’s Convergence Design Services. ACDC’s launch comes amid a surge in federal defence spending aimed at boosting the country’s domestic defence industry and making it less dependent on the United States. The federal Liberals recently unveiled their new Defence Industrial Strategy, a $6-billion program designed to shore up Canada’s defence industry by identifying areas where homegrown firms can provide innovative solutions to the Canadian Armed Forces. As military spending ramps up, the cities of Ottawa and Gatineau have launched a campaign to turn the region into a national defence innovation hub, with the goal of generating billions of dollars in economic activity. ACDC says it will help members capitalize on the defence spending renaissance by providing “direct advocacy on defence policy and industrial priorities, co-ordinated representation on procurement reform, and opportunities to build coalitions to bid on and deliver complex defence programs.” The organization also says it plans to host events where members can exchange ideas and meet with government officials to discuss issues such as procurement and defence policy.