As defence priorities evolve and automation reshapes manufacturing, Canada’s aerospace and defence map is shifting – and Waterloo is emerging as a next-generation strategic hub.
Our region has been building the foundations of a world-class aerospace and defence (A&D) ecosystem for decades. From deep manufacturing expertise and advanced robotics to world-class engineering talent and resilient supply chains, the capabilities are already here.
What’s changing now is the alignment of government policy, industry initiatives and a growing demand for dual-use technologies. This serves as a perfect moment for the Waterloo ecosystem – a community that thrives on innovation – to capture the moment and turn its long-standing strengths into a cohesive and robust A&D sector.
All signs point to Waterloo’s A&D ecosystem becoming a centre of excellence – and here’s why.
Key Takeaways
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The Waterloo region combines 150+ years of manufacturing excellence, Canada’s largest robotics and automation cluster and country’s largest university-run aviation program to create a powerful A&D ecosystem
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The region is poised for growth with rising defence spending and Canada’s new Defence Industrial Strategy
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Over 85 companies, from global leaders to innovative startups, operate across the full aerospace and defence value chain
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Initiatives like AeroWR the Aerospace Accelerator connect industry, academia and government to accelerate growth and innovation in the local ecosystem
A legacy of manufacturing and tech leadership
Waterloo’s aerospace and defence story didn’t begin recently – it’s been decades in the making.
We bring together over 150 years of manufacturing excellence, Canada’s largest robotics and automation cluster and a top-10 tech talent market in North America. Few Canadian hubs can claim this rare combination of capabilities under one roof.
This strong foundation has supported the growth of 85+ companies operating across the full aerospace value chain – from materials testing and development to software and sensor technology as well as component, drone and aircraft manufacturing. Many of these capabilities are inherently dual-use to support defence applications.
Layer in a full-service international airport with development-ready land and proximity to one of Canada’s largest aerospace clusters, and the operational case becomes increasingly compelling.
The policy shift towards stronger defence
Canada’s aerospace and defence landscape is undergoing a strategic reset. The federal government has committed to increase the defence spending to 5 percent of GDP by 2035 – roughly $150B annually. The government also released a new Defence Industrial Strategy, which aims to double the amount of military equipment sourced from domestic companies.
This shift matters to the Waterloo region because modern defence is no longer defined solely by aircraft platforms. It now encompasses autonomous systems, secure communications, AI-enabled sensing, advanced manufacturing and robotics – all areas where our ecosystem already leads. This expertise, along with strong collaborations between the industry, research institutes and the government enable companies to innovate across commercial and defence sectors.
This is the ideal time to accelerate and position our ecosystem at the forefront of Canada’s aerospace and defence industry.
Ecosystem snapshot
Our ecosystem is powered by companies operating at the intersection of aerospace, advanced manufacturing and automation and defence-related solutions. Some of the companies propelling our A&D hub forward are:
- NAVBLUE, an Airbus company, builds advanced software solutions for flight planning, navigation and performance analysis for the aviation industry
- Avidrone Aerospace manufactures unmanned automated aircraft systems for applications across commercial, defence and government sectors
- Teledyne FLIR specializes in thermal imaging and sensing systems used in aircrafts for surveillance as well as unmanned aerial vehicles for defence applications
- Heroux Devtek, a global company, provides landing gears and other manufacturing and design components to aerospace and defence companies
- Honeywell Aerospace Technologies specializes in providing products and services for cabin management, power and propulsion and more to aviation and defence companies
- Shimco specializes in high-precision shims and components needed for aircraft assembly across the globe
- SkyWatch uses satellite data and remote sensing to provide critical information to customers across various industries including aerospace and defence to solve business challenges
- Spire Global Canada uses satellite to offer data for services like aviation intelligence, weather and atmospheric intelligence and more to commercial clients and government. It’s also working on developing a dedicated satellite in Canada to offer wildlife detection
- Magellan Aerospace provides design, development and production of aircraft components and systems to aerospace, space and defence markets
In addition, startups and scaleups like AIM Robotics, LabForge Inc., Maerospace, Alchemy and OroraTech are just a few names that are inventing solutions that span both aerospace and defence.
Just as critical is our robotics and automation backbone. Global companies like Eclipse Automation, ATS Industrial Automation and Rockwell Automation provide advanced manufacturing expertise, robotics integration and automation solutions to enhance precision, reliability and production efficiency needed to accelerate innovation in highly complex A&D systems.
" When we put all the pieces together – 150+ years of manufacturing excellence, Canada’s tech leadership, leading post-secondary institutions and available land – it suddenly becomes clear to global companies that Waterloo is uniquely positioned for aerospace and defence. "
Jonathan Hendel
Senior Business Development Officer at Region of Waterloo
Research and partnerships in action
A network of regional initiatives and partnerships are fueling the next wave of innovation in the industry. At the institutional level, the Waterloo Institute for Sustainable Aeronautics (WISA) is accelerating next-generation aviation research through interdisciplinary inquiry and cross-industry partnerships to develop solutions and tools for sustainable aerospace and aviation while the University of Waterloo runs Canada’s largest university-run aviation program.
Similarly, Waterloo Wellington Flight Centre is one of Canada’s top flight schools training pilots and supporting the development of skilled talent to power our industry.
The momentum continues with regional initiatives designed to scale innovation across the ecosystem.
Let’s look at AeroWR, a new initiative by the Region of Waterloo, designed to unify our cross-sector strengths through partnerships to build a sustainable and collaborative A&D ecosystem for tomorrow. By bringing together industry, academia and government, AeroWR aims to create new opportunities of growth and to promote Waterloo region as a hub for aerospace, aviation and defence.
One example of this innovation in action is the Aerospace Accelerator Program, which is now running its second cohort. Run by the Accelerator Centre and supported by the Region of Waterloo and NAVBLUE, the program supports 10 founders from the A&D industry to offer mentorship, networking opportunities, workshops and access to modern digital tools to advance their innovation.
Together, these programs and initiatives highlight the pace and scale of innovation and growth across our ecosystem.
Waterloo’s moment is here
As aerospace and defence sectors converge, the Waterloo ecosystem is uniquely positioned to seize the opportunity.
For international A&D companies evaluating a Canadian base, Waterloo offers a rare combination: the innovation intensity of a leading tech hub, the infrastructure and industrial heritage of a successful manufacturing region and a collaborative ecosystem that moves with speed and urgency.