Project Aerospace & Defense

Aerospace & Defense: A Strategic Pillar of the Arizona–Canada Partnership 

Arizona remains a critical component of the global aerospace and defense (A&D) ecosystem and continues to serve as a hub for leading defense contractors, advanced manufacturing, and major U.S. military installations. The Canada Arizona Business Council (CABC) recognizes that Arizona and Canada together possess a unique and still underleveraged opportunity to expand collaboration in this sector. With complementary industrial capabilities, shared continental security priorities, and deeply integrated supply chains, this partnership is well positioned to serve as a model for North American aerospace and defense cooperation. The CABC remains supportive of all activity that strengthens connectivity between Arizona and Canada in this space and views A&D as one of the most important areas for sustained bilateral growth.

Arizona’s aerospace and defense foundation continues to be anchored by key military installations, including Davis-Monthan Air Force Base, Fort Huachuca, Luke Air Force Base, and Marine Corps Air Station Yuma. These assets—combined with more than 300 days of sunshine annually and highly favorable flight conditions—position Arizona as one of North America’s premier environments for pilot training, advanced flight testing, and next-generation systems development, including unmanned and autonomous platforms. This infrastructure complements Canada’s defense and aerospace capabilities, enabling a highly interoperable and efficient cross-border ecosystem.

Major aerospace and defense companies continue to operate seamlessly across both Arizona and Canada, including Bombardier, StandardAero, CAE Inc., Boeing, Raytheon Missiles & Defense, Honeywell, Lockheed Martin, and Northrop Grumman. Their presence reflects a highly integrated industrial base spanning research and development, advanced manufacturing, military training, maintenance, repair and overhaul (MRO), unmanned aerial systems, space and satellite technologies, and missile defense. Collaboration continues to expand into priority 2026 domains such as artificial intelligence, cybersecurity, quantum technologies, advanced optics, hypersonics, and autonomous systems—areas where both Arizona and Canada are making strategic investments.

Arizona continues to rank among the top U.S. states in aerospace and defense manufacturing, innovation, and testing, supported by a competitive cost structure, modern infrastructure, and a highly skilled workforce pipeline. Advantages such as lower operating costs, energy reliability, expanding semiconductor and microelectronics capacity, multimodal logistics access, and proximity to major defense primes continue to attract Canadian and binational investment. When combined with Canada’s industrial depth, engineering expertise, and strong innovation ecosystem, these factors create a resilient, secure, and scalable cross-border supply chain—an area of increasing importance amid global supply chain realignment and friend-shoring strategies. The CABC actively supports initiatives that enhance this integration and facilitate new bilateral investment.

A cornerstone of this relationship remains the North American Aerospace Defense Command, the longstanding joint U.S.-Canada defense partnership responsible for aerospace warning, aerospace control, and maritime warning across North America. As NORAD modernization accelerates—particularly in areas such as next-generation radar systems, space-based surveillance, and integrated command and control—Arizona’s military infrastructure, testing ranges, and training environments continue to play a supporting role in broader continental defense readiness. Joint exercises between U.S. and Canadian forces further reinforce interoperability, readiness, and strategic coordination.

As aerospace and defense technologies continue to evolve—particularly in space commercialization, autonomous systems, advanced propulsion, and AI-enabled defense platforms—the sector is becoming more dynamic and globally competitive. In this environment, the Arizona–Canada partnership stands out for its strategic alignment, innovation capacity, and operational integration. Continued collaboration will ensure both regions remain influential leaders in the global A&D market while contributing to North American security and economic resilience.

The CABC continues to play a central role in fostering this relationship by serving as a platform for dialogue, investment facilitation, and partnership development. Through its network, convening power, and ongoing engagement with industry and government stakeholders, the Council supports all efforts that enhance connectivity and expand collaboration across the aerospace and defense sector. Arizona and Canada are well positioned to emerge as global leaders in this space, and the CABC remains committed to advancing and strengthening this critical bilateral partnership.