Growing reliance on contractors a boon for CAE

Canadian Armed Forces facing staffing shortage

- CHRISTOPHER REYNOLDS

CAE chief executive Marc Parent, left, says a growing reliance on private contractors by Canada's military under Prime Minister Justin Trudeau bodes well for the flight simulator maker and for global security.

CAE Inc. chief executive Marc Parent says a growing reliance on private contractors by Western armed forces — including Canada’s — bodes well for his company and global security, even as questions linger around spending and accountability.

Escalating strife and international conflict have sparked a military build-up that means governments contending with personnel shortfalls depend increasingly on private sector firms for everything from catering and construction to hired guns, Parent said.

“Nobody’s happy about the rise of geopolitical tensions around the world. But what is happening for sure is that defence budgets are on the rise,” he said.

“Militaries literally don’t have enough uniformed personnel to be able to conduct their operations themselves … In Canada, they’re turning to private industry to be able to do more and more contracted services in support of the military.”