a_majoor said:
Frankly, the main reason Canada does not have companies that design and build major military equipment like entire AFV's, aircraft etc. is it isn't worth their time and effort. Canadian procurement is so small and erratic (20 years or more between buys) that any company would be bankrupt without massive government subsidies. Even getting a licence to build equipment in Canada isn't much of a sure thing, a factory was opened in Kingston to build the HLVW (10 ton truck) and closed almost immediately after the run was complete. Compare the price of a recumbent bicycle (hand built in small quantities) to a Norico or CCM bicycle you can get at Canadian Tire or Wal Mart to see what I'm getting at.
Sweden had a fairly complete arms industry, but their government was willing to purchase items in large quantities and make regular upgrades and new purchases. Even with these advantages, they now import or build tanks under licence (the Striv 122 is a Leopard 2A6 with modifications) and can produce aircraft under partnership agreements (the Gripen is a joint production of SAAB and BaE) since it is too expensive to carry on alone.
Sweden has always adhered to a policy of more or less absolute neutrality, which at one time meant it needed to support an indigenous defence industry. For a small country like Sweden, it
was very capable but quite expensive, probably partly accounting for the high taxation rates, cradle-to-grave welfare state aside. It produced the very successful Strv 103 medium
tank and the Ikv 91 tank destroyer.
However, even these could not be afforded in sufficient numbers to replace the British-built Centurions which were the backbone of Sweden's armoured corps. An attempt was made to produce one more main battle tank, and this effort (the Strv 2000 project) was ultimately deep-sixed when budget cuts and the dictates of world financial markets forced the Swedes to make major cuts to virtually every government programme, defence included.
The Strv 2000 sported a 140mm main gun and a coaxial 40mm autocannon and would have outdone the Leopard 2 in every respect. Like the Avro Arrow and the Bobcat APC, it was intrinsically a great idea which ultimately collapsed under its own weight.
Unlike Sweden, Canada has the luxury of being able to tap into the US defence production sector to meet its needs. That, and limited production runs dictated by a small military are the chief reasons why Canada doesn't produce much of its own military hardware, much less design it. Even though Canada is wealthy enough that it could afford to do otherwise, given adequate domestic and foreign markets.
My thinking is that Canada could probably afford to design and develop equipment types which don't require large R & D budgets or large capital plant and tooling-up expenses. Things like light armoured vehicles and turret systems, trucks, small arms and small crew-served weapons. I base this argument on the country's recent experience building LAV's and C7 rifles, and the fact that small(er) countries design and build similar articles on fairly small budgets. The Norwegian-designed TUA (Tow-Under-Armour) turret is a classic example of (relatively) inexpensive hardware that is well within Canada's reach.
I recently came across some info (possibly outdated with the recent change in government) indicating that Diemaco is designing (with assistance of its US parent, Colt Arms) a rifle which will be offered as a candidate in the new SARP (Small Arms Replacement Program) which is intended to replace the C7 family of rifles in the next few years or so. If my info is correct and current, Diemaco's venture marks the first time a largely indigenous small arms design has been attempted in Canada. I'm not counting the vaunted Ross rifle as an indigenous design, since it uses what is essentially a slightly modified Mannlicher action and stock. Someone correct me here if I'm wrong. If I'm right, I'll be looking forward to seeing what this indigenous design will look like. With any luck it won't look like the uber-futuristic XM8 the US Army has been evaluating.
