A shift in NATO strategic thinking and a growing reliance on conventional deterrence has given rise to the need for planned industrial support to sustain Canadian military operations. As a result, a review of the Canadian defence industrial base was conducted. This report includes a Canadian defence industrial capability profile, production base analyses and defence commodity planning. It also includes a discussion of the international and national environment in which defence preparedness is carried out.

The defence industry in Canada is facing serious challenges. Declining defence expenditures, protectionism in Canada's principal markets, political resistance, and escalating costs of weapons technology all threaten it. The Canadian Defence Industry in the New Global Environment is a thorough examination and assessment of the problems and prospects of the industry given the recent dramatic changes that have transformed the international security environment.