In the heart of OSI Maritime Systems’ Burnaby facility, engineers and technicians are immersed in enhancing navigation systems for naval vessels, a task that is set to escalate with Ottawa’s substantial investment in defense. According to Jim Girard, the company’s president, this marks the dawn of a new era for OSI, renowned for crafting cutting-edge ship bridges and navigation systems for the Royal Canadian Navy and numerous other naval forces globally.
Currently employing around 400 individuals, a significant surge from just 265 employees three years ago, Girard foresees a dramatic growth trend unfolding in Canada over the next decade. The surge in defense spending is welcomed by shipbuilding and naval-tech companies, who view the future optimistically as the federal government bolsters its financial commitment to meet NATO allies’ longstanding concerns about Canada’s military funding shortfall.
As per a NATO report, Canada was estimated to allocate approximately 1.37 percent of its GDP to defense in 2024. Ottawa’s recent budget disclosed a $6.6 billion allocation over five years towards its forthcoming defense industrial strategy, signaling a strategic shift towards reinforcing the nation’s defense capabilities.
British Columbia, seizing the opportunity to bolster its economy and foster high-paying job opportunities, introduced the Look West strategy, a ten-year plan aimed at expediting major projects, enhancing skills training, and fortifying key sectors like defense. The province aims to secure 35 percent of federal defense vessel contracts by 2035, with Seaspan shipyard serving as a pivotal partner in this strategic endeavor.
Former federal defense minister Harjit Sajjan has been engaged by B.C. to provide counsel on enhancing the province’s competitiveness in securing contracts. Sajjan emphasized the urgency for local companies to swiftly capitalize on emerging opportunities in alignment with the robust government support for growth.
The surge in federal investment comes at a time when B.C.’s shipbuilding capacity garners national attention. While B.C. Ferries recently awarded a contract to a Chinese shipyard, Seaspan opted out due to cost and timeline constraints, emphasizing the potential transformative impact of increased federal defense spending on B.C.’s industrial landscape.
Girard emphasizes the critical role of human capital in shaping B.C.’s future in defense shipbuilding, stressing the importance of investments in training and research and development. Notably, the province has pledged to double funding for trades training, a strategic move to equip B.C.-based companies with a skilled workforce poised to benefit from the influx of defense dollars.
