Engineers and technicians are bustling among racks of cables and control panels at OSI Maritime Systems’ Burnaby plant, diligently working on advanced navigation systems for naval vessels. The company anticipates a significant surge in workload following Ottawa’s commitment to allocate billions of dollars towards defense expenditure.
Jim Girard, the company’s president, expressed, “We are currently at the forefront of a new era.” OSI specializes in constructing state-of-the-art ship bridges and navigation systems for the Royal Canadian Navy and 25 other global naval forces.
Girard noted a substantial increase in the company’s workforce, which now stands at approximately 400 employees, a significant rise from 265 just three years ago. “The growth expected from Canada alone over the next decade will be substantial,” he remarked.
Shipbuilding and naval technology firms are optimistic about the future as the Canadian government ramps up defense spending to meet NATO allies’ longstanding concerns about Canada’s military funding shortfall. Earlier this year, NATO leaders, including Canada, endorsed a plan to elevate defense spending across the alliance to five percent of GDP within the next decade.
According to a NATO report from the previous year, Canada’s defense expenditure was estimated at around 1.37 percent of its GDP in 2024. Ottawa’s recent federal budget revealed a commitment of $6.6 billion over five years for its forthcoming defense industrial strategy.
This increased investment presents an opportunity for British Columbia to invigorate its economy and foster high-paying job opportunities, Girard emphasized. The province has introduced a new 10-year plan, named the “Look West” strategy, aimed at expediting major projects, enhancing skills training, and fortifying key sectors such as defense.
Part of this strategy involves securing 35 percent of federal defense vessel contracts by 2035, with the shipyard Seaspan playing a pivotal role as a strategic partner. B.C. Jobs Minister Ravi Kahlon emphasized the province’s dedication to ensuring local workers and businesses benefit from Ottawa’s augmented expenditures.
To bolster its position, British Columbia has enlisted former federal defense minister Harjit Sajjan to provide guidance on how the province can compete for contracts, with Sajjan offering his expertise pro bono. Sajjan emphasized the urgency for B.C. companies to seize new opportunities swiftly.
The surge in federal investment coincides with a period when B.C.’s shipbuilding capacity is under the spotlight. B.C. Ferries recently awarded a contract to a Chinese state-owned shipyard for constructing four major vessels, triggering criticism from unions and marine industry groups advocating for local work retention.
Seaspan, a prominent Canadian shipyard, refrained from bidding on the B.C. Ferries contract, citing challenges in competing with Chinese labor costs and timelines while fulfilling obligations under the National Shipbuilding Strategy for navy and coast guard vessels.
Leo Martin, Seaspan’s senior vice president of programs, explained that increased federal defense spending could reshape B.C.’s industrial landscape by fostering skills training, infrastructure investment, and ecosystem development.
OSI Maritime’s Girard emphasized the pivotal role of human capital in shaping B.C.’s future in defense shipbuilding, stressing the importance of investing in training and research to prepare the workforce for upcoming opportunities. The province recently announced a twofold increase in funding for trades training to support its job strategy and ensure local companies are well-equipped to leverage defense-related investments.