Meagan Kay-Fowlow swings open a steel door to a vast paved lot, her face lighting up with enthusiasm. She surveys the area—once a lumberyard for a closed hardware store—and shares her ambitious plans: a secure fence here, a private entrance there. While others might see an empty parking area, Kay-Fowlow envisions the expanding defence industry in Newfoundland and Labrador.
“It looks like a basic parking lot, but as a facility, this space is truly exciting,” she says.
Kay-Fowlow leads the Co. Innovation Centre in St. John’s, a 54,000-square-foot hub where businesses across industries collaborate to innovate and grow. The centre now invests heavily in national defence, creating a secure rear area for sensitive projects.
Federal Strategy Signals Major Shift
The local defence sector stands ready following the federal government’s new “build at home” strategy. Ottawa targets 70 per cent of defence contracts for Canadian firms over the next decade, projecting 125,000 new jobs.
Prime Minister Mark Carney describes this as a bold but essential change during the announcement. Canada must develop its own capabilities rather than depending on proximity to the United States.
Newfoundland and Labrador companies already operate in these fields, Kay-Fowlow notes. “We’ve built the capabilities and infrastructure to respond directly to this plan,” she states.
The province has long outperformed expectations, with firms like Kraken Robotics, Genoa Design, Bluedrop, and PAL Aerospace securing investments and contracts domestically and internationally.
Atlantic Canada’s Growing Role
Victoria Belbin, CEO of the Atlantic Canada Aerospace and Defence Association (ACADA), attended the strategy unveiling in Luxembourg amid NATO meetings. She promoted public-private partnerships from Atlantic firms, including those in Newfoundland and Labrador.
“The tone is optimistic, signaling government commitment to domestic industry growth,” Belbin says.
The defence and aerospace sector employs around 10,000 people in Atlantic Canada—20 per cent of the national total. Belbin expects this to rise with increased federal funding. “Opportunities abound for Atlantic Canada, especially Newfoundland and Labrador,” she adds, highlighting that 40 of ACADA’s 200 members are provincial-based. Each Atlantic province brings unique strengths, she says, paving the way for broader regional gains.
Why Newfoundland and Labrador Leads
The province’s strengths are clear, Kay-Fowlow explains. Its resource-driven economy features a robust marine sector adept at harsh, remote operations—ideal for Arctic defence tech tested locally for global use.
Two NATO DIANA (Defence Innovator Accelerator for the North Atlantic) sites in Holyrood and St. John’s bolster sovereign capabilities outlined in the strategy.
While the exact investment share remains unclear, Kay-Fowlow sees transformative potential amid economic challenges. “I’m very hopeful—this drives jobs, resilience, and growth for our people and province,” she concludes.
