This article is based on an official press release from Lockheed Martin.

Lockheed Martin Defends F-35 Economic Impact Amidst Federal Review

On January 15, 2026, Lockheed Martin released a comprehensive feature article titled “Powering Canada’s Aerospace Future: The F-35 Industrial Impact.” The release comes at a pivotal moment for Canadian defense policy, arriving shortly after Prime Minister Mark Carney ordered a formal review of the nation’s F-35 procurement program.

According to the company’s statement, the F-35 program is positioned not merely as a defense acquisition but as a critical driver of the Canadian economy. Lockheed Martin argues that the program is deeply integrated into the national supply chain, citing nearly three decades of industrial partnership that began with Canada’s initial investment in the Joint Strike Fighter (JSF) program in 1997.

The release appears to serve as a direct industry counter-narrative to renewed competition from Swedish manufacturer Saab, which has recently pitched its Gripen E fighter as a “made-in-Canada” alternative with domestic manufacturing guarantees.

Projected Economic Value and Job Creation

In its report, Lockheed Martin outlines significant financial benefits tied to the continued procurement of the F-35 Lightning II. The company projects that the program will generate over $15.5 billion CAD in economic value for Canada, covering production and sustainment activities through the year 2058.

A central pillar of their argument is employment. The manufacturers states:

The program supports 150,000 jobs over the lifetime of the program.

Lockheed Martin, “Powering Canada’s Aerospace Future”

It is important to note that industry figures regarding long-term job creation often refer to cumulative person-years rather than simultaneous permanent positions. However, the scale of the claim highlights the manufacturer’s intent to showcase the F-35 as a major industrial engine.

Supply Chain Integration

Lockheed Martin emphasizes that Canadian industry is already executing high-value work for the global fleet, not just for the jets Canada intends to buy. According to the release, $3.3 billion USD in contracts have already been awarded to Canadian companies. Furthermore, the company notes that approximately $3.2 million CAD worth of Canadian-manufactured components are currently installed on every F-35 aircraft flying worldwide.

Key Canadian Industry Partners

The “Industrial Impact” report highlights the involvement of over 110 Canadian companies that have contributed to the supply-chain. These partnerships span across the country, involving complex manufacturing and high-tech avionics.

Key players identified in the supply chain include:

• Magellan Aerospace (Winnipeg, MB / Toronto, ON): Responsible for manufacturing horizontal tail assemblies and engine lift system parts.
• Héroux-Devtek (Montreal, QC / Kitchener, ON): Produces landing gear uplock assemblies.
• Avcorp Industries (Delta, BC): The sole-source supplier for the F-35C outboard wing assembly.
• CMC Electronics (Montreal, QC): Supplies advanced avionics, including optical transceivers.
• L3Harris MAS (Mirabel, QC): Selected as a strategic partner for air vehicle depot maintenance.

Lockheed Martin’s data suggests that disrupting the procurement could impact these existing contracts, as Canadian participation in the global supply chain is often contingent on partner status within the JSF program.

Strategic Context: The Carney Review

This industry push coincides with a shifting political landscape. Following his election in 2025, Prime Minister Mark Carney initiated a review of the F-35 deal, originally finalized in 2023 for 88 jets at a cost of $19 billion CAD. The review was prompted by changing trade dynamics with the United States and a desire to evaluate options that might offer stronger domestic industrial guarantees.

Concurrently, Saab has intensified its lobbying efforts, proposing a production hub in Canada for its Gripen E fighter. Saab claims their proposal would create 12,600 jobs linked to a specific purchase of 72 Gripens and 6 GlobalEye surveillance aircraft.

AirPro News Analysis

The Battle Between Sovereignty and Integration

The release of this report by Lockheed Martin underscores the fundamental tension in Canada’s defense procurement strategy: the choice between sovereign manufacturing and global integration.

Saab’s pitch relies on the concept of “sovereignty”, the ability to build and maintain aircraft entirely within Canadian borders, independent of foreign supply chains. In contrast, Lockheed Martin is leveraging the argument of “integration.” By highlighting that Canadian parts are on all 1,270+ F-35s delivered globally, they are arguing that Canada’s aerospace sector is better served by being a small but essential cog in a massive allied machine rather than the sole builder of a smaller fleet.

The risk for the Carney government lies in the “sunk cost” of industrial participation. If Canada were to withdraw from the F-35 program, the 110+ companies currently bidding on U.S. and global contracts could lose their eligibility, potentially endangering the high-tech manufacturing base that has developed over the last 30 years.

Frequently Asked Questions

When did Canada join the F-35 program?

Canada joined the Joint Strike Fighter (JSF) program as a partner in 1997, with an initial investment of $10 million USD.

How many jobs does Lockheed Martin claim the program supports?

Lockheed Martin claims the program supports 150,000 jobs over its lifetime (through 2058). This figure is generally understood in the industry to represent cumulative person-years.

What is the status of the F-35 procurement?

While an agreement to purchase 88 jets was finalized in 2023, the Carney government ordered a review of the program in late 2025/early 2026.

Sources

• Lockheed Martin