Canada continues to punch above its weight in defence innovation. One of the clearest examples is Paradigm Shift Technologies, a Toronto-based company whose Enhanced Physical Vapor Deposition (EPVD®️) coating is reshaping how militaries think about gun barrel durability, safety, and sustainability.

We had the pleasure of sitting down with Eugene Yumshtyk, COO of Paradigm Shift (and a close friend of the agency), to talk through the company’s long journey, global partnerships, and lessons for defence innovators everywhere.

1. Long Road to Commercialization

Paradigm Shift was founded back in 1995, yet it took over two decades of R&D and persistence before EPVD®️ gained major traction (for example, a DND Canada trial on the Phalanx gun system in 2017). As COO during this scale-up journey, what does it take to sustain and grow a defense-tech company over such a long cycle, and how did you keep the team funded, motivated, and technically on track through that “valley of death” period before landing critical military contracts?

Eugene: Sustaining a defense-tech company through a decades-long cycle requires more than just R&D and engineering—it demands focus, belief, and perseverance. Our founder, Dr. Gennady Yumshtyk, never wavered in his conviction that a better, cleaner coating process was possible. My job as COO was to translate that belief into strategic milestones, team momentum, and sustainable results.

During the “valley of death” period, we kept morale high by focusing on technical wins and not on mistakes. Customer validations—like the DND Canada field test on the M242, or the US Air Force test on the GAU12—helped build internal confidence and external credibility. We kept the company lean, reinvested the majority of revenues from adjacent tech, and leveraged personal networks to bring in strategic support, not just capital.

2. From Demo to Deployment

Your EPVD®️ coating technology has proven itself a breakthrough – it’s been field-tested and validated by the U.S. Navy, U.S. Air Force, and even the Canadian Army in live-fire trials. However, going from successful demos to actual procurement contracts can be a slow, uphill battle in the defense world. What have been the biggest challenges in converting those early validations into wide-scale adoption, and how have you navigated the notoriously long sales cycles and risk aversion of military procurement to get EPVD®️ from testing grounds into active service?

Eugene: Validation doesn’t equal procurement—especially in defense. Even after successful field tests where our product demonstrated 32X improvement against the baseline, the hardest part was converting interest into contracts. The procurement process is slow by design—risk-averse and complex, the end-users were very conservative, and sometimes just lazy. The OEMs wanted to stick to the chrome-plating status quo because it’s what they have been doing for the past 100 years.

We positioned EPVD®️ not just as an innovation, but as a solution to a persistently growing problem—namely, the environmental and logistical crisis around chrome plating. We nurtured relationships, built coalitions with OEMs, and kept refining our tech with every test. Ultimately, persistence and the ability to speak both “engineering” and “government” were key.

3. Challenging the Status Quo

The defense industry was stuck on chrome-plating barrels for a century, despite its drawbacks – partly because, as some cynics note, “broken barrels mean more business” for incumbent suppliers. Dr. Gennady Yumshtyk (your father and Paradigm Shift’s CEO) has attributed the slow embrace of alternatives like EPVD®️ to simple inertia in the industry. Did you encounter resistance or skepticism from entrenched contractors or military stakeholders when pitching a radical new solution? How did you overcome the “why change now?” mindset and persuade decision-makers to take a chance on a paradigm-shifting technology?

Eugene: Yes, we faced skepticism—and many times outright resistance bordering on complete inhalation. Chrome plating was familiar, entrenched, and very profitable for legacy suppliers. There was a perception that “longer-lasting barrels” weren’t in everyone’s commercial interest.

But EPVD®️ wasn’t just a greener alternative—it increased barrel lifespan, improved accuracy, and eliminated environmental liability. The data spoke for itself. We learned that to overcome inertia, you don’t just pitch performance—you align your value with their mission. For militaries, that means resilience, safety, sustainability, and operational readiness.

4. Building Global Partnerships

Paradigm Shift managed to punch above its weight globally by teaming with major defense players – for example, Italy’s Leonardo and Germany’s Rheinmetall each contracted to trial EPVD®️ in their weapon systems. What strategies did you use to build credibility with such large international primes, and did being a Canadian company present any unique advantages or challenges in forging those partnerships? In hindsight, what would you advise other defense startups looking to partner with foreign militaries or big contractors?

Eugene: We built credibility through performance. EPVD®️ didn’t just work on paper or in the lab—it performed in live-fire exercises. That got the attention of the Primes. Being Canadian helped in some ways—Canada is seen as neutral and innovative—but it also meant we had to work harder to prove our seriousness to the US customers, who have been operating under the auspices of “if it’s not made here, it doesn’t work” for the past 50 years.

Our approach was always to deliver more than we promised. We gave OEMs real results, not just ideas. We showed the Government end-users that it was not necessary to spend billions on funding their research laboratories to have tangible results. For startups looking to go global: get your tech tested by someone who cares and wants real change. A successful pilot is worth more than a thousand meetings.

5. Navigating Canada’s Defense Ecosystem

How would you assess Canada’s current defense innovation ecosystem from a founder’s perspective? Paradigm Shift did secure some support at home (e.g. a Canadian Army/DRDC trial of EPVD®️), but it often seems Canadian startups have to prove themselves abroad before winning traction domestically. What was your experience with Canadian procurement and innovation programs as you grew the company, and what changes or improvements would you like to see in how Canada fosters, funds, and procures homegrown defense technologies for both local use and export?

Eugene: Canada has world-class innovation talent, but has struggled with adoption. In our case, we secured some support through the “build in Canada” commercialization program, yet we had to win abroad before we got recognition at home. The procurement system is improving, but it still favors incumbents and carries risk-averse timelines.

I’d like to see more agile funding models and incentives for militaries to implement Canadian SME solutions. Innovation without procurement leads to brain drain. We need to close the loop.

6. Riding Regulatory and Geopolitical Waves

In the past couple of years, external forces have started pushing militaries toward new solutions. The EU’s chemicals agency officially recognized EPVD®️ as a safer alternative to hexavalent chromium plating in late 2023, and on the geopolitical side, the war in Ukraine has highlighted the urgency for longer-lasting barrels (some artillery pieces needed 10–15 new barrels in just two years of fighting). Have these kinds of developments – regulatory pressure and real-world crisis proving the need – been game-changers for Paradigm Shift in terms of customer urgency or government support? How do you capitalize on moments when the status quo is no longer acceptable, and what advice do you have for other founders about being ready to seize (or even catalyze) such paradigm-shift moments in their industries?

Eugene: The EU’s 2023 recognition of EPVD®️ as a safe alternative to hexavalent chrome in gun barrels was a significant accomplishment—no other company in the world has received such validation. Suddenly, the regulatory tailwinds were behind us. The war in Ukraine was another inflection point—when you’re replacing 10–15 barrels per gun in two years, the need for durability is no longer theoretical.

These external forces created urgency. The lesson? You need to be ready when the moment arrives. Our team had already invested years into validation, so when the tide turned, we were the only viable solution on the market.

7. Dual-Use Strategy and Focus

Paradigm Shift isn’t just about military tech – you’ve also taken your coating innovations into the energy sector, for instance using a variant of EPVD®️(CoatAlloy™) to protect gas pipelines from corrosion. How has pursuing these dual-use applications influenced your company’s trajectory? Did diversifying into a civilian sector like energy provide a helpful revenue stream or proof-point while defense customers were still coming on board? In hindsight, what can other defense-tech entrepreneurs learn about balancing dual-use opportunities versus maintaining focus on core defense markets?

Eugene: Expanding into oil and gas with our CoatAlloy™ technology was pivotal. Not only did it diversify revenue, but it validated our coating science beyond defense. Dual-use doesn’t dilute your mission—it strengthens it.

Energy infrastructure faces similar challenges: internal corrosion, performance under pressure, and environmental compliance. We used that parallel to open new doors. For other founders: dual-use isn’t a distraction if it aligns with your core competency. It can be your proof of relevance.

8. Lessons for Defense Innovators

Paradigm Shift’s story is often cited as proof that with enough determination, even a small company can change outdated industry practices. Looking back, what key lessons or insights would you share with fellow founders building in the defense or dual-use space? Whether it’s about dealing with bureaucracy, securing funding for deep tech, leveraging pilot projects, or simply staying resilient through a years-long development cycle, what do you wish you had known earlier, and what mindsets or strategies were most critical in ultimately breaking through in the defense sector?

Eugene: The biggest lesson? Persistence and belief in your mission are key. The defense space is slow and very political. But if you have something truly transformational, stay the course, ignore “the noise.”

Build relationships early. Get pilot data. Understand both the science and the system. And never lose sight of why you started. For us, it was about leaving chrome plating—and its toxic legacy—behind. That mission kept us moving, even when the road was uncertain.

Fello's Thoughts

This interview with Eugene Yumshtyk, COO of Paradigm Shift Technologies, explores the company’s decades-long journey to bring its breakthrough Enhanced Physical Vapor Deposition (EPVD®️) barrel coating technology to global defence markets. Eugene shares how the company survived the “valley of death” of deep tech commercialization, overcame industry inertia against changing from chrome plating, and built credibility with major primes like Leonardo and Rheinmetall. He also discusses navigating Canada’s risk-averse procurement system, leveraging regulatory and geopolitical shifts (such as EU approval and the Ukraine war), and applying their technology to dual-use sectors like energy.