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From reliance to resilience: Minister Joly outlines Budget 2025 investments to Buy Canadian and build up Canada’s industrial strength

Innovation, Science and Economic Development Canada
Monday at 2:35pm AST · November 10, 2025 6 min read

HAMILTON, ON, Nov. 10, 2025 /CNW/ – The Government of Canada is building the strongest economy in the G7–an economy rooted in Canadian workers, Canadian materials and Canadian innovation. As global trade becomes more uncertain, we are choosing to build our strength at home.

Today, while touring KF Aerospace’s facility in Hamilton, Ontario, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, outlined nearly $186 million in new funding from Budget 2025 to fully implement the Buy Canadian Policy. The funding will ensure the policy delivers lasting results for Canadian businesses and workers–building capacity and increasing competition at home, streamlining processes, and better supporting small and medium-sized Canadian businesses to help them access opportunities more easily.

This past September, the Right Honourable Mark Carney, Prime Minister of Canada, announced a new Buy Canadian Policy, moving the federal government from “best efforts” to a clear obligation to buy Canadian. The policy will ensure that government procurement focuses on made-in-Canada products, strengthens domestic supply chains, supports local jobs and keeps public investment circulating in our economy.

The government is taking action to ensure federal spending supports Canadian jobs and industries such as aerospace. By prioritizing Canadian suppliers and products in federal spending, the government will reinforce Canada’s industrial strength, ensuring Canada’s economy continues to grow on a solid foundation. Requiring local content in federal procurements will benefit communities such as Hamilton, as having better access to these procurements will support Canadian workers and businesses across the country.

Through Budget 2025, the government proposes to do the following:

  • Provide $98.2 million over five years, starting in 2026–2027, and $9.8 million ongoing, to Public Services and Procurement Canada, as well as $7.7 million over three years to the Treasury Board Secretariat, to implement the Buy Canadian Policy across all federal departments, agencies and Crown corporations, such as VIA Rail and Alto, which is responsible for Canada’s new high-speed railway between Toronto and the City of Québec.
  • Provide $79.9 million over five years, starting in 2026–2027, to Innovation, Science and Economic Development Canada to support the previously announced Small and Medium Business Procurement Program. The implementation of the Buy Canadian Policy, coupled with this support, will spur domestic demand and create opportunities for economic growth in areas of strategic interest to the country. This will ensure that Canadian small and medium-sized enterprises (SMEs) can access federal contracts and compete on a level playing field.

The policy will enter into force this month and initially apply to defence, construction and other strategic procurements, with full implementation to come by spring 2026. It will extend to infrastructure spending and other federal funding streams, ensuring that as much as $70 billion in additional public investment supports Canadian-made products and services.

The government is on a mission to build Canada strong through major infrastructure projects, a modern defence industry and millions more homes. Through the new Buy Canadian Policy, we are making government a force for nation building–making Canada its our own best customer, protecting Canadian businesses and empowering our workers with high-paying careers that build prosperity at home.

Quotes

“We’re building the strongest economy in the G7 by investing in Canada. The Buy Canadian Policy is strengthening our economy by prioritizing Canadian-made steel, aluminum and softwood lumber–supporting Canadian jobs, protecting industries impacted by international tariffs and reinforcing homegrown supply chains. The federal government is leveraging every public dollar to secure Canada’s economy for the future.”

– The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

“The Buy Canadian Policy ensures that government investment improves opportunities for Canadian businesses and workers. It means more Canadian contracts awarded to Canadian suppliers, protecting our economy and creating more jobs right here in Hamilton–jobs that support Hamilton families and workers who are our industrial strength.”

– John-Paul Danko, Member of Parliament for Hamilton West–Ancaster–Dundas

“We are facing global challenges from a position of strength. Our Buy Canadian Policy is good for Hamilton and is key to building our homes, our infrastructure, our communities and our industries.”

– Lisa Hepfner, Member of Parliament for Hamilton Mountain

“The Government of Canada is moving forward with a new Buy Canadian Policy–a clear commitment to put Canadian workers, materials and innovation first. This is about ensuring that when the government invests in defence, infrastructure or construction, those dollars stay here, supporting communities like Hamilton.”

– Aslam Rana, Member of Parliament for Hamilton Centre

Quick facts

  • The Buy Canadian Policy was first announced on September 5, 2025, as part of a broader suite of strategic measures to support Canadian workers and businesses in sectors most impacted by U.S. tariffs and trade disruptions.
  • As part of that announcement, the government committed to setting up a Small and Medium Business Procurement Program to help Canadian SMEs access federal procurement opportunities.
  • The Buy Canadian Policy will initially focus on Canadian steel, wood products and aluminum as pillars of Canada’s industrial base, with flexibility to add other materials over time. Incentives for Canadian suppliers and Canadian content will also apply to strategic procurements to strengthen Canadian participation.
  • KF Aerospace, headquartered in Kelowna, British Columbia, is a Canadian-founded, Canadian-owned aviation company established in 1970 (originally as Kelowna Flightcraft). It is a maintenance, repair and overhaul (MRO) provider offering end-to-end aerospace solutions. On May 28, 2024, an $11.2 billion contract was awarded through Public Services and Procurement Canada to SkyAlyne Canada Limited Partnership, a joint venture consisting of CAE Inc. and KF Aerospace.

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