Buy Canadian Reaches Its Peak

Canadian Procurement Pulse: March 31-April 6, 2025

Author

Joe Noss
07 Apr

The "Buy Canadian" movement has hit peak maple syrup levels nationwide. Calgary's showing us how to do it right with clear scoring advantages, while Saskatchewan's busy debating whether to set their U.S. contracts on fire. Sadly, Saskatoon hockey fans are the real victims of the trade war, losing out on their new state of the art arena. We're all for waving the flag, but maybe don't tear up perfectly good contracts just to prove how Canadian you are? Here's your essential briefing:

Western Procurement Shifts

What's Happening: Calgary isn't just talking about local preference—they're putting serious teeth into it. The city increased Social Procurement Questionnaire weighting to 10% for large goods contracts, directly favouring small/medium Canadian businesses. For smaller purchases, they've gone even further by mandating three quotes from local vendors before even considering non-local options.

What It Means For You:

  • Structural advantage for Alberta-based firms in municipal contracts—95% of Calgary's contract value already goes to Canadian suppliers (70% within Alberta)

  • Prepare for potential price increases on specialized goods previously sourced from U.S. suppliers

  • This approach mirrors federal "Buy Canadian" strategies but adds enforceable scoring metrics that directly impact bid evaluations

Between Us: This is one of the first clear implementations of what it really means to focus on Canadian businesses, especially small ones. Calgary has been a leader in procurement practices, and we'll likely see this scoring model adopted by other municipalities nationwide. That said, it's important to note this only applies to large goods contracts—a Canadian construction company can still source materials from the U.S. The policy is a step forward, but it isn't changing everything. At least it's clear and implementable.

What's Happening: Not every province is falling in line with the anti-American procurement trend. Saskatchewan is defending its annual $2M contract with Texas-based RA Outdoors LTD for park reservations and hunting/fishing licenses (in place since 2012). The NDP opposition is demanding cancellation, with MLA Erika Ritchie claiming "Saskatchewan companies could provide this service," while the SaskParty government cites potential penalties and lack of viable local alternatives.

What It Means For You:

  • Tests provincial adherence to federal "Buy Canadian" directives amid trade tensions

  • May trigger widespread reevaluation of long-term contracts with U.S. entities

  • Creates openings for Canadian software companies to develop competing offerings

Our Take: This is a perfect example of the over-politicization of contracts. There are certain services that Canadian suppliers simply don't have the capability to deliver today, and there are long-term contracts you can't just tear up because of a trade war. Yes, theoretically you could, but it's fundamentally bad policy and bad business. We wouldn't want others to do that to Canadian companies. If a contract has years left on it, the penalties for termination could be substantial.

This sets a dangerous precedent—imagine governments tearing up valid contracts based on shifting political winds or international tensions. While we're firmly pro-Canadian procurement for new contracts, existing agreements deserve respect. The NDP's position here seems more about politics than practicality.

Major Projects Facing Tariff Paralysis

What's Happening: Major projects are starting to freeze amid tariff uncertainty. Saskatoon just paused approval of a crucial operating agreement with U.S.-based Oak View Group (OVG) for its planned $1B arena. City officials cite concerns over potential tariff-driven cost escalations and federal funding delays expected after the upcoming election.

What It Means For You:

  • Reflects growing caution in public-private partnerships with U.S. firms

  • Could stall urban renewal projects nationwide amid trade volatility

  • May create opportunities for Canadian partners to step in where U.S. firms now face obstacles

Between Us: The biggest losers in this trade war might just be Saskatoon hockey fans. While the arena delay is understandable given tariff uncertainties, it highlights how these trade tensions impact real communities beyond just business contracts.

Grassroots "Buy Canadian" Campaigns

What's Happening: Mid-sized cities are joining the economic nationalism wave. Brantford launched the cutest comprehensive "Buy Canadian, Shop Local" initiative with procurement policy reviews and a dedicated resources portal to help businesses navigate the new tariff landscape.

What It Means For You:

  • Strengthens regional supply chains but may limit competitive pricing

  • Sets precedent for other mid-sized cities to formalize economic nationalism

  • Creates opportunities for local businesses to capture municipal contracts

Our Take: Brantford's procurement push is possibly the most heartwarming front of the trade war right now. It reflects how communities across Canada are finding ways to support each other locally. While these grassroots initiatives might seem small compared to federal policy, they represent the kind of economic solidarity that could ultimately strengthen Canadian business ecosystems. In the long run, this shift toward local procurement could create a more resilient national economy.

Your Procurement Action Plan

Audit Contract Termination Risk: Review all long-term contracts for termination clauses and identify domestic alternatives for U.S.-sourced components or services. The Saskatchewan case shows how politically charged these agreements have become.

Build Tariff Contingency Budgets: Develop specific budget lines for tariff-related cost overruns in public projects, with transparent documentation of potential impacts. This proactive approach will impress procurement officers.

Document Your Canadian Content: Clearly articulate your Canadian credentials across multiple dimensions—ownership, employment, supply chain, and manufacturing location—to position advantageously in municipal scoring systems like Calgary's.

Prepare for Post-Election Reset: Major projects like Saskatoon's arena suggest widespread caution until federal strategies stabilize after the upcoming election. Use this time to strengthen your proposal positioning.

Balance Patriotism with Practicality: While "Buy Canadian" is the political flavour of the moment, successful contractors will differentiate between new opportunities (where Canadian content is king) and existing contracts (where stability and performance still matter).

The Bottom Line

Municipalities have emerged as the new battleground in Canadian procurement nationalism, with dramatically different approaches to balancing political pressures against operational realities.

While we're firmly in the "rah-rah Canada" camp when it comes to new procurement opportunities, there's a clear distinction between shifting future contracts toward Canadian suppliers and abruptly terminating existing agreements. 

The winners in this environment will be contractors who can document their Canadian credentials, identify essential service exceptions, and develop contingency plans for the inevitable complications of economic nationalism.

Publicus helps government contractors find, qualify, and win more contracts with less effort. Our AI-powered platform monitors every opportunity across all government levels, so you never miss a relevant RFP again.