Chamber eyes region’s potential for defence spending
Chamber eyes region’s potential for defence spending
Chamber eyes region’s potential for defence spending
By MEDICINE HAT NEWS on October 10, 2026.
The Southeast Chamber of Commerce believes southeast Alberta can become a hotspot for future defence spending, and is encouraging local businesses to begin to consider how they can get a piece of pie. According to a recent report published by the Canadian Chamber of Commerce, national defence spending could increase by more than $200 billion over the next nine years as Canada works toward its GDP defence spending goals required by NATO.--NEWS FILE PHOTOThe Southeast Alberta Chamber of Commerce says this corner of the province has potential to be one of the country’s most attractive destinations for defence innovation, testing, manufacturing and research.
According to a new report published by the Canadian Chamber of Commerce’s Business Data Lab, titled “Deepening Our Defence: Canada’s Ambitious Task to Expand the Defence Industrial Base,” southeast Alberta possesses many of the assets already needed to support the country’s next generation of defence and security priorities.
According to the report, core defence spending in Canada is projected to rise up to $228 billion in the next decade as Canada seeks to meet NATO’s full target spending of five per cent of annual gross domestic product.
The national chamber believes defence spending can grow domestic firms, create skilled jobs and strengthen the country’s supply chains, citing an International Monetary Fund model that suggests for each additional $10 billion in defence spending, approximately $7-$10 billion would be generated in related economic activity over the following three years.
The local chamber says Medicine Hat and surrounding communities could greatly benefit from defence spending because of several factors like location and abundance of resources.
The chamber says few regions can offer the combination of assets that are already found in southeast Alberta that include; CFB Suffield, Canada’s largest military training area, Defence Research and Development Canada Suffield, British Army Training Unit Suffield and the Foremost UAS Test Range.
Additionally, the region offers beyond visual line of sight drone testing capabilities, significant airspace and open testing environments, available industrial land, competitive operating costs, strong transportation connections and a growing aerospace and autonomous systems cluster.
This means the region is about to offer investors a space to grow with lower operating costs and direct access to military, research and testing assets.
Together the chamber say these assets create a “rare” environment where defence research, testing, innovation, training and commercialization can occur.
“For investors seeking locations that support emerging defence technologies, few places in Canada can match southeast Alberta’s combination of space, infrastructure, expertise and accessibility,” reads a press release.
The chamber says in the next decade not all opportunities will involve large defence contractors and is encouraging local businesses to consider exploring other opportunities, like procurement, partnership or technology applications, that could potentially support defence contractors or supply chains.
It is also encouraging local businesses to attend events and stay informed through the APEX Regional Innovation Network, review the federal government’s Defence Investment Plan, register for procurement platforms, browse tender opportunities and explore security clearance requirements.
Community Futures Entre-Corp is hosting an all-day Defence Growth Forum on Oct. 29 that will run from 7:30 a.m. to 5 p.m. at the Medicine Hat Lodge and will be focused on the future of the country’s defence sector.
Online link: https://medicinehatnews.com/news/local-news/2026/10/10/chamber-eyes-regions-potential-for-defence-spending/