OTTAWA — In mid-May, roughly 10,000 Canadian Armed Forces members stationed in the National Capital Region received an internal directive ordering them to hand back essential field equipment to address what the Defence Department described as “critical equipment shortages.”
The email, sent on May 13 on behalf of Colonel J.R. Toope, commander of Canadian Forces Support Group (Ottawa-Gatineau), targeted non-deployable personnel — those not assigned to units ready for immediate operations. It instructed them to return new-model CTS rucksacks, patrol packs with four utility pouches, tactical vests with additional pouches, and fragmentation vests used to carry armour plates. Collections took place mainly between May 19 and 21 at the Carling Campus clothing depot in Ottawa’s west end.
Department of National Defence spokesperson Andrée-Anne Poulin confirmed the move was necessary because of “challenges with stock levels” of those items in certain sizes, caused by “higher consumption.” The returned gear is being redistributed to deployable units, training programs and new recruits. DND described the recall as a routine inventory adjustment, noting that several new procurements are already underway to replenish supplies.
A Familiar Shortage — With New Timing
This is not the first time such a recall has occurred. A nearly identical directive went out in 2018 under the previous government, also citing shortages of rucksacks and related personal kit. But the 2026 episode has drawn fresh scrutiny because of its timing.
Just days after the email was sent — and while troops were physically returning their gear — Defence Minister David McGuinty delivered the keynote address at the inaugural CIBC Defence and Resiliency Summit in Toronto on May 20.
Speaking to more than 1,000 bankers, investors and defence-industry leaders at CIBC Square, McGuinty made a direct appeal for private capital. He told the audience that the government’s new Defence Industrial Strategy envisions more than $500 billion in combined public and private investment by 2035. Government funding alone, he said, “will not be enough.”
“That’s where you come in,” McGuinty stated, according to accounts from the event. He urged financial institutions to back Canadian defence companies ready to scale production, describing the moment as a “once-in-a-generation opportunity” for security, resilience, prosperity and sovereignty.
Record Defence Spending, Persistent Readiness Gaps
The government has repeatedly highlighted a major increase in military spending. In March 2026, Canada reached NATO’s 2-per-cent-of-GDP target — approximately $63 billion for the 2025-26 fiscal year — five years ahead of the previous timeline. Additional multi-year commitments and a longer-term push toward a 5-per-cent target have been framed as the highest level of relative defence investment since the Cold War.
Yet the kit recall highlights a persistent gap between announced spending and on-the-ground readiness. DND attributes the shortages to increased demand from recruitment drives, expanded training and Canada’s NATO commitments in Latvia. Military analysts and parliamentary reports have long pointed to deeper structural problems: decades of under-investment left thin stockpiles, while procurement processes remain slow, bureaucratic and prone to delays.
A KPMG Canada study released on May 22 — two days after the CIBC summit — found that 63 percent of defence and infrastructure executives identified “complex procurement and funding processes” as the biggest barrier to major projects. Talent shortages and limited access to capital for smaller firms were also cited as obstacles.
Christian Leuprecht, a defence expert at the Royal Military College and Queen’s University, has described the situation as a fundamental mismatch: the force is expanding rapidly, but supply chains and procurement have not kept pace.
Private Capital as the Missing Piece?
The government’s Defence Industrial Strategy promotes a “Build-Partner-Buy” model that prioritizes domestic production, job creation and exports. By courting private investors, Ottawa hopes to accelerate manufacturing of everything from personal kits to major platforms such as fighters, ships and Arctic infrastructure.
McGuinty’s appearance at the banking summit was part of that push. CIBC executives echoed the call, highlighting opportunities in dual-use infrastructure, cybersecurity and advanced manufacturing.
The juxtaposition, however, has raised questions about the rearming narrative. Billions have been pledged, and NATO targets have been met on paper, yet basic infantry equipment is still being recalled from headquarters staff. Critics, including some veterans and opposition voices, point to the optics: troops surrendering rucksacks while the minister asks bankers for fresh billions.
DND maintains the recall is a temporary measure that does not affect operational readiness. Deployable units continue to receive priority, and new orders are in the pipeline. Whether those orders arrive quickly enough to prevent future shortages will depend on the execution of the industrial strategy.
For now, the May 2026 gear recall serves as a concrete illustration of the challenge facing Canada’s military. As private capital is increasingly asked to shoulder part of the burden, the test will be whether the rearming effort delivers faster results on the ground — or remains largely an ambitious vision pitched to boardrooms.