A Ukrainian serviceman controls the Vampire drone during a training flight in the Kharkiv region.Marko Djurica/Reuters
Eliot Pence is the founder of Tofino Capital and the former head of international growth for Anduril Industries.
Canada’s Department of Munitions and Supply was established during the Second World War to secure a reliable domestic source of ammunition and other critical defence supplies, ensuring the country could support both Allied forces and its own military needs.
In the 1970s, the department’s successor, the Munitions Supply Program (MSP), sustained continuous domestic production capacity through long-term contracts with private industry, stabilizing employment and supply chain resilience while maintaining military readiness.
Over the decades, the program expanded to cover a broad range of munitions, from small arms ammunition to artillery shells, and became a key component of Canada’s defence industrial base, supporting both peacetime operations and contingency mobilizations.
But now, the way we fight wars has changed. And Canada has no equivalent program for the modern equivalent of ammo: cheap, armed drones.
Their power was evident on Sunday, when a cheaply made Ukrainian fleet destroyed or damaged nearly a third of Moscow’s strategic bombers. Ukrainian President Volodymyr Zelensky called the operation one for the “history books.”
Ukrainian secret services were able to attack strategic bomber aircraft at Russian air bases on Sunday by hiding explosive-laden drones inside the roofs of wooden sheds, according to a Ukrainian security official.
Reuters
In Ukraine, first-person view (FPV) drones have shifted from novelty to necessity, shaping tactics, logistics and even battlefield outcomes in real time. Reports indicate that the country is producing approximately 100,000 drones monthly, with ambitions to scale up to 4.5 million annually this year.
Notably, domestically produced drones accounted for more than 96 per cent of all unmanned aerial vehicles (UAV) used by Ukrainian forces in 2024. Drones now account for as much as 80 per cent of battlefield casualties in the war with Russia – a staggering figure that underscores their role as the new artillery of modern conflict.
Other countries have taken note, and begun to treat drones like they treat munitions. With more than one million registered drones, China has established a formidable drone industry. Its selective restrictions on drone component exports have impacted Ukraine’s drone production capabilities, while continuing to supply Russia.
Turkey and India treat drones as national enterprises. Baykar Technologies, Turkey’s leading drone manufacturer, claims to command 65 per cent of the global armed drone market, with its flagship Bayraktar TB2 and Akinci drones exported to more than 30 countries, including fellow NATO members such as Poland and Romania. India, fresh off a brief but alarmingly volatile clash with Pakistan, plans to triple its UAV expenditure to US$500-million.
The U.S. has taken important first steps, initiating the Replicator program, which aims to rapidly develop and deploy thousands of low-cost, expendable drones to maintain technological superiority. This initiative underscores the strategic importance of drone capabilities in modern defence planning.
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The Defence Innovation Unit and the Marine Corps certified the first National Defence Authorization Act-compliant FPV drone on the Department of Defence’s approved drone list in less than a year – a testament to how government and industry can move quickly when aligned.
Scale is the next challenge. Drones – especially inexpensive ones – shouldn’t be treated like traditional aircraft. They’re closer to bullets than bombers: cheap, fast, disposable and essential for modern operations.
Canada’s defence procurement model is poorly suited to this new reality. We buy exquisite systems on decades-long timelines. But to meet the moment, we need to treat inexpensive drones like munitions: funded as recurring expenditures, stocked like ammo and procured with flexibility.
This is where Canada’s MSP offers a model. Under the program, the Department of National Defence ensures domestic production capacity for key munitions through long-term contracts and industry partnerships. This approach guarantees both readiness and sovereignty.
An MSP for drones would fund Canadian manufacturers to produce inexpensive drones at scale, on a recurring basis; establish testing, compliance and training pathways for rapid deployment; and build domestic supply chains to avoid the bottlenecks that have hampered artillery production.
The opportunity is here. The technology exists. Canada’s tech ecosystem – startups, researchers and defence primes – can deliver if the government provides clear demand and stable funding.
Canada once led the world in radar, communications and aerospace. Let’s not miss the opportunity to lead in the drone era.