Government-led push sparks investor interest in naval defence, infrastructure in Canada

Canada now spends about 1.4 per cent of GDP on defence. It will boost pay for service members and buy new submarines, aircraft, ships, armoured vehicles and artillery, as well as new radar, drones and sensors, Carney has said. It will also introduce a new policy to ensure the federal government buys from Canadian suppliers.

"In light of this elbows-up stance that our country and many others seem to be taking these days, to the extent possible we'll be trying to keep some of those dollars at home," said Brian Madden​​​​, chief investment officer at First Avenue Investment Counsel, referring to a hockey term for self-protection.

First Avenue owns shares in Bombardier. Kraken Robotics, which produces subsea sensors, batteries and robotic systems, is another company that could benefit from stepped-up defence spending, Madden said.