Zeal Motor: Taking off in the defence sector
The founders of Zeal Motor originally developed their Fat Truck all-terrain vehicles to meet the needs of mining and power transmission companies. When the Department of National Defence also took an interest, they stepped up their efforts to become a partner of choice.
Maxim O’Shaughnessy likes to describe Zeal Motor as “a young company with a lot of experience.”
A big part of it is the experience that its three co-founders and owners have combined over decades. All three got their start in the industrial vehicle sector, adapting vehicles for use in challenging environments.
Today, they are all involved in the operations of the young company founded in Bromont, Quebec, in 2018. “That’s why we’re able to move quickly,” says Maxim O’Shaughnessy, Zeal Motor President.
The company’s Fat Truck vehicles, with their oversized wheels, can navigate rugged, snowy and swampy terrain. After making inroads in mining and energy, the vehicle has gone on to conquer the communications, security and search-and-rescue markets.
And since the beginning of the decade, the company has also been working to establish itself in the defence sector, which now represents a growing share of its business.
This is the time. Our government is calling on industry to mobilize. We need to be bold and genuinely get on board with this initiative, with the right risk-management plan.
Maxim O’Shaughnessy
Co-Owner and President, Zeal Motor
Tested by the Canadian Armed Forces
Zeal Motor’s journey with the Canadian Armed Forces began in 2021, through a call for proposals from Innovative Solutions Canada, a program designed to facilitate the development, testing and validation of prototypes developed by small businesses.
“When we read the call for proposals and the requirements, it was a shock because it was exactly the challenge our civilian and industrial customers had been describing to us. That gave us an opportunity to develop our platforms and evolve,” explains David Lord, Zeal Motor’s Director of Defence Programs.
Once selected, the company spent time with the Canadian Armed Forces to understand their needs down to the smallest detail—including, for example, the length of the hook-and-loop fastener needed to secure syringes in the ambulance module attached to the all-terrain vehicle. Over several months in 2023, two vehicles were tested and evaluated in the Arctic.
While the experience proved successful, it also gave the Zeal Motor team a few sleepless nights because the call for proposals did not include the provision of replacement parts or servicing.
“These vehicles were shipped to the Canadian Far North, thousands of kilometres from any other form of life, without a single spare part,” recalls Maxim O’Shaughnessy. “They came back in working order without any major breakdowns, but it cost us a few hours of sleep!”
Don’t ask yourself how to sell your existing product to the government. Instead, understand the capabilities it needs and how you can meet those needs.
David Lord
Director of Defence Programs, Zeal Motor
Two parallel approaches to breaking into the market
The Arctic challenge led to a number of contracts with the Canadian Armed Forces and the U.S. Air Force. Discussions are also underway with other North Atlantic Treaty Organization (NATO) countries.
In 2026, to support its growth in the defence sector, Zeal Motor expanded its plant in Cowansville, about 20 kilometres from Bromont. With support from BDC, among others, the company now has 40,000 square feet (3,700 m2) of space, three assembly lines and a dedicated area for innovation projects, giving it a total production capacity of about 500 vehicles a year.
But Zeal Motor’s defence activities go beyond manufacturing and selling its own vehicles.
As early as 2020, the young company caught the attention of Rheinmetall, a German security and defence conglomerate. Zeal Motor designed and developed vehicle platforms integrating the German company’s autonomous technologies.
The collaboration resulted in three autonomous vehicle models sold worldwide by Rheinmetall. Zeal Motor continues to respond to calls for proposals with its own vehicles.
“These are parallel experiences that have allowed us to develop our knowledge and understanding of defence needs, speak with users and engage with the entire supply chain,” says the entrepreneur. “We’ve truly become part of the defence sector.”
From start-up to prime defence contractor
Despite its small size and recent entry into the market, Zeal Motor has taken the necessary steps to serve as a prime contractor in Canadian defence contracts, or to support a NATO partner that has been awarded a Canadian contract.
“We started with four employees and worked with the Canadian and Quebec manufacturing network to quickly build an ecosystem with expertise and know-how in parts manufacturing, programming, hydraulics and mechanics,” explains Maxim O’Shaughnessy.
Today, the defence market represents 20% of its business. The executive estimates that this share could rise to 50% over the next few years before declining once NATO governments’ acquisition cycle peaks. That’s why the production line needs to be flexible enough to switch between military and civilian contracts.
Three challenges to overcome when breaking into the defence sector
Maxim O’Shaughnessy and David Lord identify three challenges for SMEs wondering how they can take advantage of Canada’s new Defence Industrial Strategy:
Manage cash flow risks
Defence involves many uncertainties, particularly when it comes to contract-award timelines. Visibility is much lower than in the civilian sector, and companies need to be prepared to deliver even when a contract has not yet been signed, which can create cash flow challenges. It is essential to ensure that your financial partners understand the specific characteristics of the sector.
“When you borrow money, it’s better to have terms that allow you to make payments later, once you receive payment yourself, or to have more flexibility in your repayment schedule,” recommends Maxim O’Shaughnessy. “Financial partners need to share the risk with companies.”
Understand the government’s needs
David Lord recommends starting with the operational challenge that the Department of National Defence is trying to solve.
“Don’t ask yourself how to sell your existing product to the government. Instead, understand the capabilities it needs and how you can meet those needs.”
Obtain the required certifications
Even if you comply with high industry standards, defence customers operate within a strict regulatory framework and require specific certifications, including those related to supply chain traceability and cybersecurity.
If this seems too intimidating, working with a prime contractor can help you break into the sector and develop solutions jointly, while reducing the requirements placed on your company, notes David Lord.
An investment worth making
For Maxim O’Shaughnessy, all these efforts are well worth it. He encourages Canadian SMEs to take on the financial and operational challenge of participating in the defence sector.
“This is the time. Our government is calling on industry to mobilize. We need to be bold and genuinely get on board with this initiative, with the right risk-management plan.”
Next step
Find out how BDC can help you expand into the defence sector: BDC Defence Platform.