The Conference Board of Canada has published an updated assessment of the current and future economic impacts of the National Shipbuilding Strategy (NSS), delivered through Irving Shipbuilding’s work at the Halifax Shipyard. According to the latest report, the NSS will contribute $14.2 billion to Canada’s GDP between 2013 and 2026.
The National Shipbuilding Strategy is a program to modernize Canada’s fleet of combat and non-combat vessels. The combat vessels are being built at the Halifax Shipyard, led by Irving Shipbuilding, which includes constructing six Arctic and Offshore Patrol Ship (AOPS) vessels for the Royal Canadian Navy, two AOPS variants for the Canadian Coast Guard and 15 River-class destroyers (RCD) for the Royal Canadian Navy.
It is effectively Canada’s largest shipbuilding project in history and will redefine the Canadian Navy’s combat capabilities.
The economic benefits of the NSS are impacting businesses and communities across the country, with an estimated $12 billion in spending commitments going to 678 Canadian organizations.
With Irving Shipbuilding’s supply chain stretching from coast-to-coast, the NSS is delivering $9.5 billion in labour income to Canadians, supporting an average of 9,400 full time jobs annually across Canada, with 4,300 of these jobs located in Nova Scotia.
In total, nearly $5.4 billion in taxes, fees, and charges are expected to be collected by all three levels of government between 2013 and 2026.
A critical component of the NSS is investing in the rebuild of a domestic shipbuilding workforce and marine industry. Bordered by three oceans, Canada’s history, heritage, and culture have been shaped by shipbuilding, and nowhere does this ring truer than in Nova Scotia. Since 2015, the Halifax Shipyard has invested $49 million in skills training, leadership development, and safety awareness of its local workforce. In addition, 688 trades apprenticeships have been hired, with 402 of these graduating to become Red Seal-certified tradespeople.
“The National Shipbuilding Strategy is a foundational industrial policy that is delivering value for money to Canadians and much needed capability to Canada’s Navy and Coast Guard,” says Dirk Lesko, President of Irving Shipbuilding. “We are incredibly proud of our more than 2,400 shipbuilders in Halifax who have risen to the challenge of maintaining the Halifax-class frigates, constructing Arctic and Offshore Patrol Ships, and who now ready to build the River-class destroyers.”
Canada’s Industrial and Technological Benefits (ITB) policy ensures that Canada’s defence and security spending generates economic benefits for the country. It also provides important investments in targeted areas, supporting local suppliers, who are often small businesses, and expanding their opportunities to export.
Read the full report: Value for Money: Economic Impact of the Halifax Shipyard Under the National Shipbuilding Strategy - The Conference Board of Canada