LONGUEUIL, QC – At the Space Canada Horizons conference on May 20, 2026, a private sector panel emphasized the need for the Canadian government to transition from acting as a traditional client to operating as a strategic partner. The overarching message from industry leaders was clear: structural bottlenecks and a culture of risk aversion threaten to leave Canada behind in a rapidly expanding global market.
The “Private Sector in Canada” panel featured the following industry leaders:
- Moderator: Andi Sharma, Space Canada
- Ewan Reid, Mission Control
- Andrew Lockhart, Telesat
- David Musson, Lunar Medical
- Jason Trembley, Terrestar
- Kevin Whale, MDA Space
Competing on a “civilization scale”
The global space economy is moving quickly, driven by massive private capital and international initiatives like NASA’s Ignition program. Jason Trembley of Terrestar noted that Canadian companies are competing against “civilization scale” organizations, pointing out that SpaceX and Amazon’s combined market value of around $3 trillion exceeds Canada’s GDP of roughly $2.5 trillion.
(Editor’s Note: Trembley’s $3 trillion estimate is highly conservative. As of May 2026, the combined market capitalization of Amazon and the private valuation of SpaceX is estimated to be over $4.6 trillion, further underscoring his point regarding the sheer scale of global competition.)
To remain relevant, Canada must match the cadence of international missions like the Commercial Lunar Payload Services (CLPS). Ewan Reid of Mission Control stressed that the Canadian space ecosystem needs to move fast and view initial funding for programs like the Lunar Utility Vehicle (LUV) as “seed funding to create an industry”. A successful LUV program is not measured by having a rover on the Moon, but rather by creating an ecosystem of Canadian firms selling systems, subsystems, and components to a thriving lunar economy.
Procurement, iteration, and the “Best Buy paradox”
Bureaucratic bottlenecks remain a critical concern for scaling space capabilities. Kevin Whale of MDA Space used the analogy of the “Best Buy paradox” to describe the government’s traditional approach to procurement.
He explained, “It’s like walking into Best Buy and say, 10 years from now, I want to buy the best laptop possible. What’s your advice? Here’s an RFI. I’m looking for a laptop in 10 years”. Whale argued that this approach is a “colossal waste of time”. Instead, he advised, “The year prior go in and say, what’s gonna be the next best laptop coming on the market next year?”. Consequently, Whale recommended that the government “stop trying to select solutions early for strategic capabilities” and “start focusing on selecting partners early”.
While Whale praised recent collaborative models—such as the rapid four-month turnaround achieved by the Telesat, MDA, and Government of Canada partnership —he identified the Treasury Board as the procurement system’s bottleneck. He warned that the Board’s requirement for 300-page submissions to squeeze out project risk will be the “longest pole in the tent,” even if the rest of the system is empowered to move quickly.
These industry concerns reflect in part an ongoing conversation at the Canadian Space Agency (CSA). Earlier in the day, CSA President Lisa Campbell addressed the conference to outline a shift toward agile procurement. Acknowledging the need for speed, Campbell urged a move away from long-development, rigidly defined missions. Instead, she advocated for the sector to “strive for initial operating capability and then iterate it.” Noting that space procurements are uniquely exempt from standard trade agreements, Campbell emphasized that the CSA possesses “massive flexibility” to move quickly. “All the tools are already there,” she said, encouraging the bold use of existing mechanisms over waiting for legislative reform.
Sustaining SMEs through better coordination
For small and medium-sized enterprises (SMEs), survival relies on predictable funding cycles and better stakeholder alignment. David Musson of Lunar Medical stressed that the most immediate need for SMEs is the ability to rely on “consistent and longitudinal programmatic philosophies from the government”. He noted that a long-term project focus gives companies the “confidence to hire up engineers” and speak to potential investors, warning that “it’s the unpredictability of that that will defeat a lot of these things”.
Furthermore, Musson explained that his firm develops multi-use technologies, such as digital health integration and AI for austere environments, which have applications across the military, naval operations, Environment Canada research stations, and space. However, the burden of coordinating these cross-departmental relationships currently falls entirely on the companies themselves.
A shift in diplomatic support and culture
Despite these challenges, panelists noted positive developments in how the government advocates for domestic space firms abroad. Andrew Lockhart of Telesat highlighted that while the U.S. and France have historically excelled at having government representatives accompany their industries globally, Canada is now adopting this approach. Backed by the government’s recent Defence Industrial Strategy, Trade Commissioner Services, ambassadors, and defence attachés now have an active mandate to stand beside Canadian industry and push for opportunities internationally.
Ultimately, systemic reform requires a cultural change. Borrowing a phrase heard earlier at the conference, Reid noted that “culture eats strategy for breakfast”. He acknowledged that shifting the mindset of a massive bureaucracy is a “really hard change to effect” but stressed that it’s “gonna come from leadership”. He pointed out that government risk intolerance often stems from a fear of negative press, referencing the worry of ending up on the “Globe and Mail front page”. He urged stakeholders in both government and industry to accept some risk, acknowledging that they might break some things along the way and hopefully “not sue each other” in the process.
Summarizing the sector’s needs for the coming year, Trembley requested three guiding principles for government action: “Clarity, speed, and partnership”.