Membership in the Canadian Association of Defence and Security Industries (CADSI) has reached an unprecedented level, reflecting growing interest across diverse sectors in Canada's defence industry amid a significant increase in federal defence spending. As of late June, CADSI reported a record 1,788 members, an increase of roughly 750 from the previous year and nearly 1,400 more than its lowest point in 2021.

Founded in 1983 and based in Ottawa, CADSI traditionally represented primarily defence-focused companies, including both small and medium-sized enterprises and larger contractors such as Lockheed Martin Canada and General Dynamics Canada. However, recent growth in membership includes a wider range of stakeholders, such as banks and academic institutions, many of which had not previously engaged closely with the defence sector.

Among financial institutions, several of Canada's largest banks, including the Canadian Imperial Bank of Commerce, have joined CADSI in 2026. Deborah Rowe, CIBC’s senior director of public affairs, described the membership as part of the bank’s commitment to supporting the Canadian defence sector, a shift from prior years when such involvement was less common for financial actors. Public sector entities like the Business Development Bank of Canada have also joined, expanding alongside academic members such as Carleton University and Queen’s University.

While the surge in CADSI membership illustrates heightened interest in the defence ecosystem, analysts caution that it does not directly equate to a proportional expansion of Canada’s core defence industrial base. Government data from 2024 estimates approximately 540 companies constitute the traditional base, roughly a third of CADSI’s total membership. The increase is seen more as a sign of emerging technologies and new stakeholders seeking to engage with the sector amid Ottawa’s growing defence budget.

The association’s annual CANSEC conference, held in late May and attended by Prime Minister Mark Carney in 2026, also played a notable role in attracting new members. Access to this key industry event, along with networking opportunities involving senior government officials and bureaucrats, was cited by new members such as Hugh Kolias, CEO of Canada Rocket Company, as a decisive factor for joining.

Membership fees vary by company size, with smaller firms paying around $1,070 annually, and larger organizations, including those with 500 or more employees, paying upwards of $11,000. Some in the industry express concerns about CADSI’s membership costs and the presence of American subsidiaries, prompting alternative groups like the Alliance of Canadian Defence Companies to emerge, offering a more Canadian-focused option.

Another indicator of expanding activity is the spike in registrations under Ottawa’s Controlled Goods Program, which oversees the safeguarding of military and national security-related products and data. After a decline in applications earlier, submission volumes surged by approximately 78 percent year-over-year in February 2026. This rise coincides with increased government defence investments and reflects companies’ efforts to meet required security clearances.

Overall, the trends suggest growing engagement from a broader cross-section of Canadian businesses and institutions as they navigate changes in defence priorities and funding. While the size of Canada’s defence industrial base remains modest, the increasing number of stakeholders indicates a sector in transition, responding to heightened federal investment and opportunities.