RCAF fighter procurement and ITB policy noted at regional forums

Canada’s planned purchase of 88 new fighter jets would be its largest aerospace buy in more than 30 years. It presents a once-in-a-generation opportunity to create jobs and generate benefits for Canadians.

Four CF-188 Hornets in flight
Canada is planning to acquire new fighter jets to replace its aging CF-188 Hornets (pictured here). An industrial and technical benefits policy would require the successful contractor to invest one dollar in the Canadian for every dollar it receives from the federal government. Mike Reyno Photo

The purchase of these jets is subject to the Industrial and Technological Benefits (ITB) Policy, which requires that for every dollar the government spends on major defence purchases, the winning contractor must put a dollar back into Canada’s economy.

Through this policy, the government’s purchasing power is being used to support innovation and create well-paying middle-class jobs.

This was the message delivered at a series of six regional forums held across the country by Innovation, Science and Economic Development Canada, in concert with National Defence, Public Services and Procurement Canada, and the regional development agencies.

Representatives from more than 250 companies and 50 universities and research institutions participated in a total of 750 meetings.

They were able to meet directly with fighter manufacturers and start building relationships and partnerships during these forums, positioning them to take advantage of the opportunities that will come from this large-scale procurement.

By working with Canada’s aerospace and defence industries, the government said it is making sure that Canadians get the most benefits possible from large defence purchases.

“The Industrial and Technological Benefits Policy means we can turn the most significant investment in the Royal Canadian Air Force in more than 30 years into middle-class jobs and economic benefits for Canadians,” said  Navdeep Bains, Minister of Innovation, Science and Economic Development.

“Our government has achieved yet another important milestone as we continue to make progress toward replacing Canada’s fighter fleet. This procurement will generate significant economic benefits for Canadians, and we committed to ensuring that our Canadian aerospace and defence sectors are well-positioned to participate in the renewal of Canada’s fighter fleet,” said
Carla Qualtrough, Minister of Public Services and Procurement.


“A modern fighter jet fleet is essential for defending Canadian sovereignty, enabling continental security, and contributing to international peace and security. I am pleased to hear about the productive conversations that have been taking place with Canadian industry members and partners these past few weeks. This competition presents a great opportunity for Canadian industry to be involved with the sustainment of the future fighter fleet,” said Harjit S. Sajjan, Minister of National Defence.

Quick facts

  • Canada’s aerospace and defence industries together contribute over 240,000 quality jobs;
  • The aerospace industry directly contributed $13 billion in gross domestic product and over 87,000 jobs to the Canadian economy in 2016;
  • The Canadian defence sector includes over 650 firms employing highly skilled workers in high-quality jobs. Since 1986, Canada’s ITB Policy and its predecessor, the Industrial and Regional Benefits Policy, have contributed almost $40 billion to Canada’s gross domestic product. Applying the policy generates around 40,000 jobs annually.



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