State of Canada's Defence Industry 2022

Ammunition and Other Munitions

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services, and disposal activities such as relating to:

• Conventional ammunition in small/medium/large calibers, artillery and mortar rounds, bombs, grenades, torpedoes, mines, other munitions and related precision manufacturing;
• Related propellants and explosives like explosive plastics, gels, liquids, and powders; and nuclear, biological and chemical warheads.

Excluded are sales of missiles, rockets and other related parts and components which should be reported under the category for, ‘Missiles and Rockets’.

Missiles and Rockets 

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services relating to military missiles and rockets, including advanced missiles used by anti-ballistic missile (ABM) systems.

Excluded here are sales relating to:

• Space launch vehicles;
• Munitions/sub-munitions and other types of warheads carried on, or delivered by missiles and rockets.

Those are to be reported under either the categories for ‘Ammunition and Other Munitions’ or for military space systems as appropriate.

Firearms and Other Weapons 

This category includes military sales related to production as well as research, development, design, engineering, testing and evaluation services relating to technologies aggressively used to gain or defend a tactical advantage over an adversary; to attack, defend and protect assets and personnel. This includes lethal and non-lethal kinetic and non-kinetic weapon systems like:

• Light/medium/heavy firearms;
• Vehicle-based or mobile weapons like tank guns, howitzers, mortars and missile launchers;
• Acoustic, laser, and other electromagnetic based weapon systems.

Military Systems Deployed in Space, Space Launch Vehicles, Land-based Systems for the Operation, Command and Control of Space Launch Vehicles or Systems Deployed in Space, and Related Components

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services:

• Relating to primarily military systems deployed in space (e.g., satellites, spacecraft, and space robotic systems) and their sub-systems and components; as well as space launch vehicles.
• Related design, engineering and production of earth-based systems used for the operation, Command & Control of military systems deployed in space and space launch vehicles (e.g., ground stations, satellite tracking systems, and launch facilities).

Primarily Airborne Electro-Optical, Radar, Sonar and Other Sensor / Information Collection Systems; Fire Control, Warning and Countermeasures Systems, and Related Components

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services relating to primarily airborne:

• Electro-optical systems (e.g., image intensification night-vision systems, thermal imaging systems, lasers), radars, dipping sonar, other sensors, and fire-control systems used to aid weapons in target acquisition, tracking and engagement;
• Warning systems (e.g., technologies that detect enemy radars, enemy laser targeting systems, and approaching threats such as missiles);
• Countermeasures (e.g., electronic jamming equipment, smoke screens, flares to counter heat-seeking missiles).
• Other related aircraft avionics systems.

Note: sales relating to similar systems, parts and components but which are integrated into naval vessels should be reported under the category for “Naval Ship-Borne Mission Systems and Components”.

Primarily Land-based Ground Vehicle Borne, Man-Portable or Non-Platform Specific Electro-Optical, Radar, Sonar and Other Sensor/Information Collection Systems; Fire Control, Warning and Countermeasures Systems, and Related Components

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services relating to primarily land-based, ground vehicle-borne, man-portable or non-platform specific:

• Electro-optical systems (e.g., image intensification night-vision systems, thermal imaging systems, lasers), radars, sonar, other sensors, and fire-control systems used to aid weapons in target acquisition, tracking and engagement;
• Warning systems (e.g., technologies that detect enemy radars, enemy laser targeting systems, and approaching threats such as missiles), and countermeasures (e.g., electronic jamming equipment, smoke screens, flares to counter heat-seeking missiles).

Note: sales relating to similar systems, parts and components but which are integrated into naval vessels should be reported under the category for: “Naval Ship-Borne Mission Systems and Components”.

Primarily Airborne Communications and Navigation Systems; and Other Information Systems (Including Processing and Dissemination), Software, Electronics and Components

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services relating to primarily airborne:

• Military communications systems, secure cyber/information systems, and other military Information Technologies (including software);
• Navigation and guidance systems (e.g., Global Positioning System [GPS] based systems, gyroscopes, accelerometers) and other geomatics related systems and services (e.g., geographic information system (GIS) products and services for military applications, remote sensing services for military applications);
• Other technologies for the receipt, exchange/disseminating, processing, synthesizing, analysis and integration of multiple types of data;
• Display technologies, digital control systems and other avionics; Other mission system avionics, computers and electronics;
• Other aircraft avionics for military aircraft not elsewhere specified.

Note: sales relating to similar systems but which are integrated into naval vessels should be reported under the category for: “Naval Ship-Borne Mission Systems and Components”.

Primarily Land-based, Ground Vehicle-Borne,  Man-Portable or Non-Platform Specific Communications and Navigation Systems; and Other Information Systems (Including Processing and Dissemination), Software, Electronics and Components

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services relating to land-based, ground vehicle-borne, man-portable or non-platform specific:

• Military communications systems, secure cyber/information systems and other military Information Technologies (including software);
• Navigation and guidance systems (e.g., Global Positioning System [GPS] based systems, gyroscopes, accelerometers) and other geomatics related systems and services (e.g., geographic information system (GIS) products and services for military applications, remote sensing services for military applications);
• Other technologies for the receipt, exchange/disseminating, processing, synthesizing, analysis and integration of multiple types of data;
• Display technologies and digital control systems;
• Other defence computer and electronics related products not elsewhere specified.

Note: sales relating to similar systems but which are integrated into naval vessels should be reported under the category for: “Naval Ship-Borne Mission Systems and Components”.

Naval Ship-Borne Mission Systems and Components

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services relating to such systems as:

Naval vessel mission/combat systems: command, control, and communications; radar, sonar, electro-optical and other sensors, navigation systems, displays, other Information Technologies (including Software) and electronics, countermeasures; guns, and missile or torpedo launchers.
Excluded from this category are sales related to the actual missiles, torpedoes and other munitions or projectiles launched or fired from/by naval vessels’ weapon systems; as well as associated warheads.
Such sales are to be reported under either the category for ‘Missiles and Rockets’ or the category for ‘Ammunition and Other Munitions’ as appropriate.

Naval Ship’s Structural Elements, Platform Systems, Parts & Components (Excluding Shipborne Naval Mission Systems)

This category includes sales for production as well as research, development, design, engineering, testing and evaluation services relating to:
Platform systems, subsystems, structural parts and components intended for either existing manned naval surface ships/submarines or for use during the building of new manned naval vessels (e.g., vessels that were specifically designed or modified for use by militaries in combat or the transportation of military goods and personnel).
For example, this would include sales of bulkheads, ship propulsion plant and electrical power systems, ship propellers and propeller shafts, steering mechanisms, machinery control systems, ballistic protection materials, fire extinguishing systems, climate control/ventilation and water treatment systems, plumbing, deck machinery, living spaces, and hull compartments and other hull sections, naval ships’ helicopter handling systems, etc.

Excluded from this category are sales related to shipborne naval mission systems/naval vessels’ combat systems like command, control, and communications systems; radars, sonar, electro-optical systems, naval countermeasures, navigation systems, displays and other sensors and electronics, naval guns and missile launchers. Those are to be reported under the category for:
Naval ship-borne mission systems and components.
Excluded from this category are sales related to maintenance, repair and overhaul services provided for manned naval surface ships/submarines. Those sales should instead be reported under the separate category for:
Naval ship maintenance, repair and overhaul.
Excluded from this category are sales by shipyards relating to their design or construction/assembly and delivery of newly built naval ships (including submarines); and/or naval conversions. These should instead be reported under the separate category for:
New naval vessels constructed by shipyards, and naval conversions

Naval Vessel Architecture, Engineering, Certification and Related Professional Services

This category includes sales under contracts specifically for naval architecture and engineering services relating to naval surface ships or naval submarines operated by navies (i.e., vessels specifically designed for/restricted to use by militaries in combat, their transportation of military goods and personnel, or to otherwise perform military/naval specific functions).

Relevant Services Include:

• Assessing design requirements and proposals, and determining basic vessel characteristics;
• Modeling related to hydrodynamics and to vessel signature management (e.g., radar cross section; thermal, acoustic and electromagnetic emissions, etc.);
• Overall ship hull and superstructure design, and determination of platform system requirements (e.g., requirements to be met by power and propulsion, steering, HVAC systems, etc.);
• Specifying the layout of vessels' interior space, and the physical layout of platform systems and other systems and machinery within vessels;
• Provision of associated drawings/schematics and job specifications;
• Inspections of machinery and equipment, hulls and superstructures, (including damage surveys);
• Developing and conducting testing and evaluation of machinery and equipment, and of platforms' operational performance;
• Ensuring compliance with marine vessel standards and regulations, and certification of systems and vessels;
• Deriving vessel construction cost estimates, and establishing contract specifications and vessel production schedules.

Exclude from this category:

• Sales under contracts specifically for the actual provision or integration of businesses' specific ship-borne mission systems, platform systems, and structural elements, as well as of simulation systems for naval vessels.  Such sales should instead be reported under other naval goods and services categories as most appropriate in accordance with their respective definitions.
• Sales under contracts specifically for the provision and/or management of maintenance, repair and overhaul services; or of the actual modernization or upgrade of naval vessels and their systems.

New Naval Vessels Constructed by Shipyards, and Naval Conversions

Only to be reported here are sales by shipyards in relation to their construction/assembly work (and/or related research, development, design and engineering work) conducted by their operations in Canada in relation to the:
Assembly of new manned naval surface ships or submarines at a business’ shipyards in Canada (i.e., vessels that were specifically designed for use by militaries in combat, the transportation of military goods and personnel, or to otherwise perform military/naval specific functions).

Conversion of existing vessels that were originally designed and built as commercial/civil vessels into naval vessels for future use by militaries in combat, the transportation of military goods and personnel, or to otherwise perform military/naval specific functions.

Excluded from this category are sales of goods and services related to shipborne naval mission systems such as naval radars, battle management command and control systems, mine detection and naval countermeasures, naval guns and missile launchers etc. Those are to be reported under a preceding category for:
Naval ship-borne mission systems and components.

Excluded from this category are sales related to maintenance, repair and overhaul services (MRO) for manned naval surface ships and submarines. Those sales should instead be reported under a separate category for:
Naval ship maintenance, repair and overhaul.

Excluded from this category are sales of goods and services relating to structural elements, other platform systems, subsystems, parts and components of naval vessels not elsewhere reported. Such sales should instead be reported under the separate preceding category for: Naval ships’ structural elements, platform systems, parts, & components (excludes shipborne naval mission systems)

Further exclusions or guidance:
if the business is not a shipyard in Canada but was nonetheless responsible for, (and paid by a government/military for progress on) the eventual delivery of naval vessels being assembled by a shipyard in Canada that is not its subsidiary, or otherwise owned by the business or by a common parent company—then, such a business should not report sales figures which include the amount of associated sales made by the shipyard(s).

For such businesses, they should only report any relevant sales relating to work done by their respective operations’ employees in Canada, which exclude the sales value of work the businesses contracted/subcontracted or passed through to shipyards in Canada.

This is necessary in order to prevent potential large scale double counting of the actual value of naval vessels being delivered by shipyards in Canada, and hence overestimation of the actual volume of associated industrial activity at shipyards in Canada

Naval Ship Maintenance, Repair and Overhaul

This category includes sales, carried out under contract, related to the provision of services for maintenance, repair, and overhaul of naval surface and subsurface marine vessels (e.g., submarines); as well as for related training activities.

Combat Vehicles and Components

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services relating to: Land-based vehicles designed for use in combat and to transport and protect soldiers, and the systems, sub-systems and components of such vehicles (e.g., vehicle structures, electrical systems, armour, engines, transmission systems, heating/cooling systems, engineering).
Excluded are sales relating to combat vehicle-based weapons systems such as guns and missiles launchers as such sales should be reported under the ‘Firearms and other weapons’ category.
Sales relating to associated projectiles like tank gun rounds or missiles should be reported separately under the ‘Ammunition and other munitions’ or ‘Missiles and rockets’ categories as appropriate.

Combat vehicle communication systems, electronics, sensors, fire-control and navigation systems sales should be reported under either the appropriate categories for:

• ‘[Primarily land-based or man-portable] electro-optical, radar, sonar and other sensor/information collection systems; fire control, warning and countermeasures systems; and related components’;
• ‘[Primarily land-based, man-portable or non-platform specific] communications and navigation systems; and other information systems (including processing and dissemination), software, electronics, and components’.

Similarly, sales relating to maintenance, Repair, overhaul (MRO) and/or training services relating to combat vehicles should also be reported separately in the category for:
‘Combat vehicles maintenance, repair and overhaul’.

Combat Vehicles Maintenance, Repair and Overhaul

This category includes sales, carried out under contract, related to the provision of services for maintenance, repair, and overhaul of land-based vehicles designed for use in combat and to transport and protect soldiers; as well as for related training activities.

Aircraft Fabrication, Structures and Components

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services relating to:
Military aircraft, and military aircraft structural elements, control surfaces, systems, sub-systems, parts and components of manned military aerial platforms, and complete manned military aerial platforms, intended for use in combat and military transport. This includes things like landing gear (e.g., wheels, shock absorbers and related parts for the retraction and extension of aircraft landing gear, helicopter pontoons); flight control actuators; and propulsion and power systems for military aircraft (e.g., aircraft gas turbine engines, compressors, fuel systems).

Excluded from this category are sales related to military aircraft maintenance, repair and overhaul (MRO) services; aircraft communication systems; navigation systems; avionics; air-borne sensors; missiles, rockets and projectiles made to be fired from aerial platforms; display units; and other electronics for manned military aerial platforms—these are to be reported under separate defence product and service categories as appropriate.

Military Aircraft Maintenance, Repair and Overhaul Services

This category includes sales relating to maintenance, repair and overhaul activities (carried out under contract) in relation to military aircraft, engines and accessories; as well as for related training activities.

Unmanned Aerial Systems and Vehicles and Components

This category includes sales related to production, research, development, design, engineering, testing and evaluation services relating to:
Military unmanned aerial vehicles/systems and drones, and related sub-systems, parts, components and accessories (including related ground control systems and launchers).

Excluded are sales relating to missiles; or to weapon systems (e.g., guns, missile launchers) and ammunition, munitions, and missiles carried on/delivered by unmanned aerial systems or vehicles.
Such sales should be reported under either the category for: ‘Firearms and other weapons’ or under the category for ‘Missiles & rockets’.

Simulation Systems for Aircraft

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services for the hardware and software technologies used by military and security forces to develop, experiment and test operational doctrines and to train personnel using situational scenarios (e.g., intelligent software, visual systems, network simulations, real-time simulators) as primarily related to aircraft and operations in the air-domain.

Simulation Systems for Naval Vessels

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services for the hardware and software technologies used by military and security forces to develop, experiment and test operational doctrines and to train personnel using situational scenarios (e.g., intelligent software, visual systems, network simulations, real-time simulators) as primarily related to naval vessels and operations in the maritime-domain.

Simulation Systems for Land Vehicles or Other Applications

This category includes sales related to production as well as research, development, design, engineering, testing and evaluation services for the hardware and software technologies used by military and security forces to develop, experiment and test operational doctrines and to train personnel using situational scenarios (e.g., intelligent software, visual systems, network simulations, real-time simulators) as primarily related to land vehicles/ground-based systems and operations; or for other applications not elsewhere specified.

Military Training Services

This category includes sales related to the provision and development (by operations in Canada) of:
Live military training services to military personnel such as in relation to combat training exercises, including military airborne training services and any similar land or maritime training services; military marksmen and sniper training, etc.

Relevant activities are those that occur in real/natural physical environments mirroring expected operational environments/ conditions to the extent possible, using actual platforms and/or other systems and equipment.
Training services involving individuals/trainees operating simulated platforms and/or other warfighting systems/equipment in simulated/synthetic environments mirroring expected operational environments/scenarios.
Such activities may relate to training of specific military personnel in isolation, or to training of multiple individuals. For example, multiple individuals simultaneously operating separate but networked military aircraft simulators.
Training and simulation based services involving simulated actors/ forces operating simulated systems/equipment in simulated/ synthetic environments and scenarios, based at least in part on inputs entered into simulations prior to the running of simulations (e.g., war-gaming models).
Excluded are sales of actual simulation system hardware and associated software—which should instead be reported under the three categories relating to ‘Simulation Systems’ as appropriate.
Excluded are sales for training services related to the maintenance, repair and overhaul (MRO) of military platforms and systems—as these should be reported under appropriate MRO categories under the survey.

Military Personal Protective Equipment, Load Carriage Systems and Operational Clothing

This category includes sales related to production, research, development, design, engineering, testing and evaluation services; as well as to the maintenance and repair of:
Soldiers’ personal protective equipment (PPE) including:

• Ballistic/blast protection and related military body armor, helmets, eyewear and related accessories; as well as soldier flame/thermal protection;
• Chemical, biological, radiological & nuclear (CBRN) military protective suits, as well as military respirators and associated
• Soldier load carriage systems (includes exoskeletons and other personal equipment designed specifically to help soldiers carry their respective fighting, battle and sustainment loads);
• Other personal military items designed for use by individual soldiers to aid in their concealment from enemy detection;
• Other operational military clothing and footwear.

Excluded from this category are sales relating to ceremonial uniforms, as well as commercial/civil market items purchased for soldiers. Nor are these to be reported as defence goods and services sales under any of the other defence sales categories.
Excluded from this category are sales relating to sensors/electronics designed for military use in the detection and identification of CBRN and explosives related threats.
Sales of goods and services relating to such sensors/electronics should instead be reported under the most appropriate category relating to:
“Electro-optical, radar, sonar and other sensor / information collection systems; fire control, warning and countermeasures systems, and related components”

All Other Defence (Specify)

This category includes sales that could not otherwise be captured under other specified defence goods and services categories, and which are earned from:
Designing, engineering, testing, evaluating, producing, providing, maintaining, upgrading, modernizing and/or performing research and development for:

• Systems and/or services specifically designed or adapted for (and generally restricted to) use by militaries to conduct military operations, and which perform military functions/missions; and related subsystems, components or parts limited in use/specific to such military systems or services and the performance of military specific functions.
  To be in-scope, businesses’ industrial activities must also involve actual production/provision of such goods and services by their employees located in Canada.

EXCLUDED are sales of:

• Goods and/or services that were produced/rendered/provided by facilities and employees located outside of Canada, and then just delivered/sold as is by a business located in Canada;
• Goods sold by wholesaler/distributor/retailer operations located in Canada which were not actually produced by those businesses in Canada, (but which were produced by other businesses located in Canada and/or abroad);
• Cleaning services provided to military facilities, construction and maintenance services for basic housing and infrastructure (e.g., roads, sewers, etc.) at military bases, human resources staffing services, basic commercial transportation services to military clients (e.g., commercial trucking firms transporting goods to a base), and raw materials (i.e., chemical feed-stocks, metals, etc.).