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Photo by COLE BURSTON/AFP via Getty ImagesA group of 14 Canadian companies building drones and related technologies want the federal government to buy more from homegrown businesses that make and control their own hardware and software as the debate over how Ottawa’s Buy Canadian policy should be deployed continues.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe businesses announced the formation of the Canadian Alliance for National Uncrewed Capability (CANUC), an advocacy group asking the government to prioritize Canadian-controlled companies as it builds out the country’s drone industrial base, at a major defence trade fair in Poland on Tuesday. Those companies employ more than 400 people and have over $70 million in combined annual revenue.“(We) are ready to provide the Department of National Defence with truly made-in-Canada solutions, which means no licensing or reselling of foreign uncrewed technology,” said Josh Ogden, founder and chief executive of Fredericton-based Aerial Vehicle Safety Solutions Inc., which makes parts for drones such as cameras, flight and safety systems.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe members say they have developed their operations and supply chains in a way that will keep manufacturing, intellectual property and control of critical systems within the country, which is key to developing sovereign drone capabilities amid an ongoing trade dispute with the United States.Ottawa in August launched the Defence Drone Initiative to help the Canadian Armed Forces and Canadian Coast Guard quickly test and adopt uncrewed autonomous systems — including drones, counter-drone systems and ground and underwater vehicles — by establishing a list of pre-approved qualified suppliers. It has already started releasing names of approved companies that include Canadian, U.S. and European businesses.CANUC said Ottawa should buy from domestic sources where possible, rather than well-funded foreign companies that set up distribution arrangements and register Canadian subsidiaries.“Otherwise, we’re going to end up like the automotive industry, where we just assemble other people’s stuff,” Ogden said.CANUC said its members have devised strategies to quickly scale domestic production if and when they receive high-volume military contracts.For example, Aerial Vehicle Safety Solutions has been stockpiling certain items, such as 2.5 years’ worth of parachute fabric, that have longer lead manufacturing times. It has also ramped up production over the past 12 months to try to get ahead of tariffs and potential supply chain disruptions, Ogden said.“I want to know that at any point we can produce 10,000 units of our training drone system that we’re developing,” he said. “The less movement you have to do now, the better off you are. We made that bet last summer.”Matt McRoberts, co-founder and chief executive of Kitchener, Ont.-based Pegasus Aeronautics Corp., which builds complete drone systems and the “guts of a drone,” from motor and flight controllers to powertrains and airframes, said some of its tech is patent-protected.“If the Canadian Armed Forces needs to scale something from hundreds of units a month to tens of thousands, we have a network of Canadian manufacturers and internal manufacturing capability to start outputting a huge amount of product,” he said. “You need to be able to very rapidly prototype and validate a design before you get to that point, though, and that’s where a lot of companies fall short.”Having in-house manufacturing and owning IP also means the company can find workarounds for supply chain chokepoints or potential vulnerabilities, McRoberts said.For example, China controls the bulk of refined dysprosium, a rare earth element that allows magnets to operate at higher temperatures, and blocks foreign companies from buying the element without Chinese government approval.“But if you have the whole design and engineering stack, you can make a motor that is slightly heavier, but doesn’t operate at temperatures where you need those covered minerals,” he said. “You can design around these sorts of limitations if you have the capability.”Industry players say there are tradeoffs such as higher costs to building in Canada and that it is unfeasible for the country to try to build everything itself.Sean Greenwood, founder and president of Calgary-based Canadian UAVs Inc., which sells products and services to help the defence department fly in civilian airspace, said Canada won’t benefit by remaking every piece of the puzzle.“We need targeted investment in things that advance our capabilities, not a repeat of the full laundry list,” he said.For example, he said Canadian UAVs makes a drone radar called Sparrowhawk by applying its proprietary computer vision tech to an off-the-shelf Japanese-made marine radar, saving on development costs while keeping the IP and control at home.“With (drones), parts like the airframe are a commodity. You can 3D print those things,” he said. “What you really want is the ownership of the autopilot, the mission computer and the data analytics on board. Those are the crown jewels.” Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.