In this new world, defence strategy is now economic strategy

Harry Culham is the president and chief executive officer of Canadian Imperial Bank of Commerce.

Next week, as global investors gather in Toronto for the inaugural Canada Investment Summit, there will be no shortage of topics for discussion, from natural resources to artificial intelligence and technology.

One message will ring louder than any other: Defence is no longer a secondary consideration to investment decisions. It is economic strategy, industrial policy and resilience rolled into one.

The old habit was to treat security and prosperity as separate conversations. That is no longer tenable. Recent geopolitical events have shown that the world is becoming more complex and less predictable. Supply chains are strategic terrain. Data is a contested space. Energy, infrastructure and critical minerals are now instruments of national power.

NATO allies have committed to invest 5 per cent of GDP annually by 2035 to strengthen our collective security. For Canada, the scale of the opportunity for our economy is potentially transformative. The federal Defence Industrial Strategy offers more than $500-billion in cumulative investment by 2035, from building roads in the Arctic to investing in robotics and satellite technologies. Properly directed, it is a once-in-a-generation opportunity to build enduring productive defence capacity in Canada.

It would be a mistake to see this as a narrow military agenda. The real opportunity lies in dual-use investment: infrastructure that serves both civilian and security needs, and industrial projects that deepen domestic capability while integrating allied supply chains.

Canadian Army reorganizes to better prepare for possibility of major conflicts

Consider the Arctic: Investments there are often framed as remote or regional. They are neither. Arctic capability is sovereignty, logistics and deterrence. It also includes roads, ports, energy grids and connectivity that can unlock growth for communities long underserved by capital.

Another example is critical minerals: Canada produces 10 of NATO’s 12 defence-critical raw materials. That is a strategic advantage we cannot squander.

And then there is technology – the next generation of defence capability will be shaped as much by source code as by steel. Cybersecurity and digital infrastructure are now central to national security. Countries that lead in these fields will not just defend themselves more effectively; they will attract talent, generate intellectual property and build world-class companies.

Across the defence ecosystem, we often hear that while many small- and medium-sized firms have the technical expertise and the strategic relevance to succeed, they do not always have the access to growth financing needed to scale. That gap matters. If capital is slow or hesitant, promising companies either stall, or migrate to jurisdictions that move faster. And when talent follows capital, countries lose more than businesses. They lose capability.

These companies need partners that recognize the strategic importance of their work and the commercial opportunity it represents.

Finance has a serious role to play in enabling their long-term success. Banks and investors should be asking harder questions than just whether a project clears a conventional threshold of return. They should also ask what kind of industrial base their capital is helping to build, and whether it strengthens resilience in the sectors that matter most.

We hear the call to action from government, as well as from small and medium enterprises, that greater access to capital is needed. We are answering that call with pace. That is why CIBC is making a strong commitment to the defence industry ecosystem.

CIBC commits $2-billion to help finance defence-related companies

We are announcing a new defence and resiliency target: a $2-billion commitment in capital to support small and medium defence-related enterprises. This is just the start of our financial commitment. It is a serious plan grounded in long-term thinking and confidence in Canadian business.

For companies that are meeting the moment, we are making it clear that we are standing right next to them. For our NATO allies, we are signalling our steadfast commitment to the security of our alliance.

This is an extension of our founding purpose: A bank of commerce should help foster commerce where and when it matters most. In 1867, that meant financing railroads and nation-building infrastructure that helped connect a new Confederation. In 2026, it means financing the capabilities that will allow Canada and its allies to remain secure and productive in a more fragmented geopolitical environment.

We know that nation-building in our time will not look like the nation-building of the past. While focus is oriented toward physical infrastructure, it is also increasingly moving toward strategic capacity in technology, energy, critical minerals and defence. Our investment shows we are ready to back Canadian promise with Canadian conviction.

Our ambition for Canada is straightforward – that we become a more dependable, innovative and resilient country. It’s our goal that we become a country that invites global partnerships and is confident in shaping its own future in an uncertain world.