Industry analysis

Industry analysis is the systematic examination of an industry: who participates in it, what capabilities they hold, what market conditions apply, which technologies matter and how the economics work. Governments use it to make better decisions about what to buy, how to buy it and how procurement supports industrial policy.

In Canada, industry analysis shows up mainly as an internal government activity and as part of market and industry engagement. It is most visible in defence procurement, where National Defence, Public Services and Procurement Canada (PSPC) and Innovation, Science and Economic Development Canada (ISED) draw on information about suppliers, capacity and benefits to shape procurement strategies.

How the Defence Procurement Strategy draws on industry information

The federal Defence Procurement Strategy is a government-wide initiative involving National Defence, the Canadian Coast Guard, PSPC and ISED. PSPC leads stakeholder and industry engagement before and during defence procurements, develops procurement strategies and leads solicitations. It also oversees technical-benefits and price evaluations. Details are on the PSPC Defence Procurement Strategy page.

The government describes its engagement as early and continuous. The purpose is to understand the solutions industry has available, exchange information between government and industry, and clarify the capabilities required and the benefits Canada wants from a purchase. This engagement is the practical channel through which industry knowledge reaches procurement planners.

ISED reporting on the Canadian defence industry

ISED publishes industry-sector intelligence on aerospace and defence, including a statistical overview of Canadian defence-industry activity in its State of Canada's Defence Industry reporting. This material gives a public picture of the industrial base and supports government assessment of industrial capacity and market conditions. Suppliers can read the same reporting to see how their sector is characterized.

Planning tools that rely on industry knowledge

Several Canadian instruments connect industry understanding to procurement decisions:

• Defence Capability Blueprint: it lists major capital equipment, information-technology, infrastructure and significant in-service-support projects, with funding ranges and timelines meant to help industry plan and compete. See the National Defence procurement disclosure.
• Industrial and Technological Benefits (ITB) Policy: for applicable defence and security procurements, it contractually requires awarded companies to undertake industrial activity in Canada equal to the value of the contracts won. See the ISED ITB annual report.
• Defence Industrial Strategy: it links defence procurement to strengthening the Canadian defence industrial base and uses a Build-Partner-Buy framework. That framework prioritizes domestic production where feasible and cooperation with trusted allies where necessary. See Security, Sovereignty, Prosperity.

What industry analysis means for a supplier bidding on Canadian public contracts

Industry analysis is generally something government does about suppliers, not a standard document suppliers submit. What a bidder must provide is set out in each solicitation and contract, so read those documents closely for any request for a market or sector assessment.

Suppliers can still act on the same information the government uses. Practical steps include:

• Take part in industry engagement sessions and requests for information, where capabilities and available solutions are discussed.
• Describe relevant capabilities clearly, since procurement teams are trying to understand what industry can deliver.
• Use the Defence Capability Blueprint to prepare for future solicitations.
• Plan for technical, price and industrial-benefit requirements, including ITB obligations on covered defence and security contracts.
• Review ISED sector reporting to see how your part of the industry is described.