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 $17 billion to Canada’s GDP between 2013 and 2027.
The NSS is a program to modernize Canada’s fleet of combat and non-combat vessels. The combat vessels are being built at the Halifax Shipyard, which includes constructing six Arctic and Offshore Patrol vessels (AOPS) for the Royal Canadian Navy, two AOPS variants for the Canadian Coast Guard and 15 River-class destroyers for the Royal Canadian Navy.
This is 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 $15 billion in spending commitments going to nearly 700 Canadian organizations.
With Irving Shipbuilding’s supply chain stretching from coast-to-coast, the NSS is delivering almost $11.3 billion in labour income to Canadians, supporting an average of 10,600 full time jobs annually across Canada, with 4,500 of these jobs located in Nova Scotia.
In total, over $6.3 billion in taxes, fees, and charges are expected to be collected by all three levels of government between 2013 and 2027.
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, $222 million has been invested in skills training, leadership development, and safety awareness of its local workforce. In addition, 794 trades apprenticeships have been hired, with 504 of these graduating to become Red Seal-certified tradespeople.
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