The Defense Industrial Base is Indispensable to U.S. Security and Prosperity

With Labor Day behind us, it is fitting to reflect on the contributions of all those who work to support our national defense as part of the U.S. Defense Industrial Base (DIB). The DIB is an indispensable pillar of our national security, and an engine for innovation, jobs, and economic growth.

Today, the defense industry employs 1.1 million U.S. workers across more than 59,500 companies. This vital network, known as the DIB, comprisespeople, organizations, facilities, and resources that equip our military with the advanced technologies and capabilities needed to defend the nation. The DIB is a significant economic driver, contributing hundreds of billions of dollars annually to the U.S. economy.

From manufacturing aircraft and combat vehicles to novel research, these hardworking Americans form the backbone of industries that equip our military and sustain our technological edge.

For instance, American workers are making a significant impact on military aviation innovation. Over 27 thousand American workers, employed by over 500 suppliers in Texas, Pennsylvania, and nearly every state across the country, are currently producing pioneering aircraft, including the world’s first operational military tiltrotor aircraft, the V-22 Osprey.

To build the first production military tiltrotor aircraft, government relied on the DIB and its defense, aviation, engineering, and manufacturing expertise to deliver game-changing technology to the battlefield.

In Arlington, Texas, a team of specialized engineers work at a 47,000-square-foot facility devoted to driving forward the Future Long-Range Assault Aircraft (FLRAA) at Bell’s new fifth-generation Weapons System Integration Lab (WSIL). This $70-billion project will support Bell’s digital engineering approach and open architecture, aimed at equipping U.S. armed forces with the next generation of vertical lift aircraft, offering longer ranges and faster speeds than existing models such as the Black Hawk or Chinook.

By investing in the DIB, we are not only advancing our own national security interests, but also improving the economic future of working families across the country.

Yet the DIB faces several systemic challenges that jeopardize American power, including diminished manufacturing capacity, workforce shortages, dependence on foreign sources for critical materials and technologies, and other supply chain vulnerabilities.

The Covid-19 pandemic exposed some of these fragilities in American supply chains, including our country’s reliance on foreign sources for vital inputs essential for national defense, such as microelectronics and rare earths—a risk we cannot afford.

A robust national industrial base capable of swift mobilization and replenishment is essential for deterring and, if needed, defeating strategic adversaries. That is partially why Congress has allocated up to $68 billion within the $113 billion Ukraine aid package for domestic spending to replenish depleted U.S. ammunition inventories.

Moreover, the DIB must be diverse, including small businesses and innovative startups. According to the Congressional Research Service, most defense contractors are in fact small businesses – nearly 70% of companies that do business with DoD are considered small business. These small business are critical to keeping the U.S. Military supplied with key components needed for weapons manufacturing, life cycle sustainment, and long term upgrades.

Unfortunately, the number of small businesses in the DIB has fallen by more than 40%.  Without action, the Department of Defense could lose an additional 15,000 small business partners over the next decade, creating national security and economic vulnerabilities.

In a geopolitical environment increasingly driven by great power competition, the ability to project power and maintain military superiority is crucial for protecting American interests, and those of our Allies.

The U.S. cannot lag as Russia and China modernize their own defense industrial bases. For example, China is the world’s largest shipbuilder and has a shipbuilding capacity that is roughly 230 times larger than the U.S. From 2015 to 2019, China’s quality-adjusted military patents grew annually by 16%, while the U.S. saw a 6% annual decline.

The Navy is short of 1,200 workers across its four public shipyards, and the submarine industrial base will need nearly 100,000 qualified workers over the next decade. The Pentagon must urgently invest in workforce attraction, training programs, and public-private partnerships to bridge this human capital gap.

The U.S. needs a strong DIB to deter China and other competitors. Our country needs to ensure it can produce advanced weapons, maintain technological superiority, and sustain supply-chain resilience, particularly during crises.  In addition, we should create partnerships and exchange technology when appropriate with key regional allies across the globe.

Recognizing these challenges, the Department of Defense has rightfully developed the National Defense Industrial Strategy to promote competition, diversify supply chains, and ensure a skilled workforce capable of meeting the demands of modern warfare. Its success hinges on the collaboration of the military, private sector, and academia.

Investing in the DIB is not just about national security; it is about investing in American workers, supporting small businesses, and fostering innovation. This is how we strengthen our military, improve training and readiness of the current force, and continue to promote U.S. economic prosperity.

The people of the U.S. DIB are ready to meet any challenge. Washington must ensure they have the tools for the job. Only with concerted attention and sound policies from Congress and the next Administration will the U.S. Defense Industrial Base be healthy enough to  foster the necessary innovation our national security demands.

Dr. Jo Ann Williams is CEO/Owner of Iron Mine Strategies, a training and education consulting firm. She advocates for and provides researched-based knowledge, critical thinking, and analysis for decision-makers. She is a former Instructional Systems Design Analyst.