# Canada’s Drone Ambitions Put Domestic Manufacturers to the Test Ottawa seeks sovereign drone capabilities, challenging local firms to move beyond simple assembly. - **Source:** [BetaKit](https://betakit.com) - **Published:** 2026-11-05 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/6872e2fa-1a94-48ae-84f9-04d54cf475db ## Defining True Manufacturing AVSS CEO Josh Ogden argues that true manufacturing requires owning product design rather than just assembling foreign components. He compares mere assembly to building IKEA furniture, asserting that Canada must possess deep technical knowledge to maintain sovereign control over its defense technology, allowing for rapid modifications without relying on external partners. ## Federal Procurement Shift The Canadian government launched the Defence Drone Initiative Marketplace to bolster domestic supply chains. This digital platform facilitates procurement for the Canadian Armed Forces and Coast Guard. AVSS was among six companies awarded initial contracts worth up to $50 million, signaling a strategic move to prioritize local expertise in defense acquisitions. ## Pandemic-Driven Resilience Supply chain disruptions during COVID-19 forced AVSS to adopt modular design strategies to survive component shortages. By learning to swap parts and manage unpredictable costs, the company developed the resilience necessary for defense work. Ogden believes companies that navigated these challenges possess the operational toughness required for critical government contracts. ## IP Ownership Advantages Owning intellectual property allows firms to modify hardware quickly, as demonstrated by AVSS’s rapid redesign of an avalanche explosive release system. When a client requested a capacity increase from five to 50 pounds, the company successfully engineered a solution in months. Licensing foreign technology would have prevented such agile, custom-tailored engineering. ## Scaling Domestic Operations AVSS is significantly expanding its footprint to meet federal demand, with plans to deliver over 1,000 drones by 2027. The company is currently increasing its workforce from 55 to 70 employees by December. Furthermore, they are undergoing a massive facility expansion, with plans to increase their physical production space fivefold next year. ## Cultivating Local Engineering Talent To ensure long-term sustainability, AVSS implements a structured mentorship program for junior engineers. New staff spend two years working alongside senior experts, shielded from immediate commercial deadlines to focus on skill acquisition. This internal development strategy aims to build a deep pool of domestic talent capable of complex, sovereign hardware engineering. ## Commercial and Defense Synergy Beyond defense, AVSS maintains a robust commercial business, having sold over 2,500 units of parachute safety and avalanche technology this year. This dual-track approach provides financial stability while refining the hardware that the federal government requires. By balancing these sectors, the company maintains the agility to respond to diverse, high-stakes operational needs. ## Strategic Sovereignty Goals Canada’s push for domestic drone manufacturing aims to eliminate reliance on foreign entities for critical defense modifications. By fostering companies that own their designs and expertise, Ottawa seeks to ensure it can adapt technology instantly during crises. This shift represents a broader effort to secure national security through independent, high-tech industrial capability. ## Sources covering this story - https://betakit.com/canadas-drone-ambitions-put-domestic-manufacturers-to-the-test/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._