{"id":34699,"date":"2018-05-22T15:50:40","date_gmt":"2018-05-22T15:50:40","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2018\/05\/22\/americas-industrial-base-is-at-risk-and-the-military-may-feel-the-consequences\/"},"modified":"2026-08-07T23:50:11","modified_gmt":"2026-08-07T23:50:11","slug":"americas-industrial-base-is-at-risk-and-the-military-may-feel-the-consequences","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/home\/2018\/05\/22\/americas-industrial-base-is-at-risk-and-the-military-may-feel-the-consequences\/","title":{"rendered":"America\u2019s industrial base is at risk, and the military may feel the consequences"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2015 Underneath the rosy picture of a strong U.S. defense industry lies a demographic challenge for the workforce and contraction issues, a new government study has concluded.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The annual Industrial Capabilities report, quietly released May 17 by the Pentagon\u2019s Office of Manufacturing and Industrial Base Policy, found that America\u2019s defense industry continued to outperform other industrial sectors in fiscal 2017.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, long-term trends \u201ccontinue to threaten the health of the industrial base, limit innovation, and reduce U.S. competitiveness in the global markets,\u201d the report states.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The greatest challenge that could harm domestic defense capabilities is the <a href=\"https:\/\/www.defensenews.com\/training-sim\/2017\/11\/09\/lord-looks-to-foster-high-potential-talent-with-workforce-development-plan\/\" title=\"\" class=\"\" target=\"_blank\">demographics of the workforce<\/a>. Only 39 percent of the current workforce is under the age of 45. And while jobs in the aerospace and defense sectors are seen positively by the majority of young professionals, only 1.5 percent of 25- to 34-year-olds in the U.S. have a science degree.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/breaking-news\/2017\/12\/14\/american-exodus-17000-us-defense-suppliers-may-have-left-the-defense-sector\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"166\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/635779162083515022-ap-242258128965jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">American exodus? 17,000 US defense suppliers may have left the defense sector<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">A large number of American companies that supply the U.S. military may have left the defense market, a report says, raising alarm over the health and future of the defense industrial base.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Taken together, the challenge is obvious to the authors of the report: Aerospace and defense companies are \u201cfaced with a shortage of qualified workers to meet current demands as well as needing to integrate a younger workforce with the \u2018right skills, aptitude, experience, and interest to step into the jobs vacated by senior-level engineers and skilled technicians\u2019 as they exit the workforce.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The report notes that the Department of Defense had a trio of meetings with the <a href=\"https:\/\/www.defensenews.com\/newsletters\/tv-next-episode\/2018\/04\/30\/the-impact-of-new-arms-export-rules\/\" title=\"\" class=\"\" target=\"_blank\">Aerospace Industries Association<\/a> in FY17 to address workforce issues, with promises for those dialogues to continue in the future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Service breakdown<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The report also describes what it sees as the biggest threats to the industrial base for different domains of warfare. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the Pentagon, the biggest risk for the aerospace sector is its ability to \u201csustain the design and manufacturing skills and capabilities needed for future aircraft design and manufacture.\u201d Specifically, the authors of the report are concerned that \u201cforeign dependency, single or sole sources, and financial viability continue presenting a risk for the aircraft\u201d puts <a href=\"https:\/\/partner-mco-archive.s3.amazonaws.com\/client_files\/1527002508.pdf\" title=\"\" class=\"\" target=\"_blank\">lower-tier suppliers<\/a> at risk in the defense and aerospace sector.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b><a href=\"https:\/\/www.c4isrnet.com\/electronic-warfare\/2018\/05\/22\/the-risks-facing-the-pentagons-high-end-electronics-and-radars\/\" title=\"\" class=\"\" target=\"_blank\" style=\"\">RELATED: The risks facing the Pentagon\u2019s high-end electronics and radars<\/a><\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b><a href=\"https:\/\/www.defensenews.com\/pentagon\/2018\/05\/22\/the-us-is-running-out-of-bombs-and-it-may-soon-struggle-to-make-more\/\" title=\"\" class=\"\" target=\"_blank\">RELATED: The US is running out of bombs \u2014 and it may soon struggle to make more<\/a><\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For the ground vehicle sector, the Pentagon is concerned that a lack of innovation over the last decade has <a href=\"https:\/\/www.defensenews.com\/land\/2018\/02\/15\/next-gen-combat-vehicle-prototyping-to-be-accelerated\/\" title=\"\" class=\"\" target=\"_blank\">led to stagnation<\/a>, and hence \u201cany new combat vehicle design will face cost, schedule, and performance challenges.\u201d And notably, the authors warn that around the world, combat vehicles are slowly approaching parity with the U.S. at a time that \u201cthe lack of new development programs for tracked systems is challenging the U.S. ability to innovate in this subsector.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"580\" height=\"407\" src=\"\/wp-content\/uploads\/2026\/08\/industry.JPG.jpg\" alt=\"\" class=\"wp-image-113935\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/industry.JPG.jpg 580w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/industry.JPG.jpg?resize=300,211 300w\" sizes=\"auto, (max-width: 580px) 100vw, 580px\" \/><figcaption class=\"wp-element-caption\">The defense industrial base continues to outpace other sectors, but there are worrisome trends in the future, a new report has found. (Pentagon report)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The shipbuilding sector remained stable for FY17, but continues to face potential consequences if something were to happen to the small, <a href=\"https:\/\/www.defensenews.com\/naval\/2018\/05\/16\/at-bath-a-destroyers-keel-is-laid-more-than-a-year-behind-schedule\/\" title=\"\" class=\"\" target=\"_blank\">highly concentrated industrial base<\/a>. The DoD should continue to closely monitor shipbuilder workload to ensure enough production exists to keep the industrial base alive, the report says.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The space sector is \u201cincreasingly dependent\u201d on <a href=\"https:\/\/www.defensenews.com\/c2-comms\/satellites\/2018\/02\/07\/heres-what-the-spacex-falcon-heavy-launch-means-for-the-satellite-industry\/\" title=\"\" class=\"\" target=\"_blank\">the commercial market<\/a>, which evermore so is focused on nonmilitary launches. While that has provided technological developments in the last decade, it also means certain parts and qualifications used for national security space missions are in short supply. \u201cUnless a timely investment to establish a domestic capability is made, the United States will be at high risk of putting multiple [national security] programs in jeopardy,\u201d the report found.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are also major concerns about the \u201corganic industrial base\u201d \u2015 those <a href=\"https:\/\/www.defensenews.com\/special-reports\/tactical-networks\/2017\/10\/02\/special-report-inside-cecom\/\" title=\"\" class=\"\" target=\"_blank\">internal suppliers<\/a> who handle acquisition, sustainment and maintenance issues. But the infrastructure that makes up the organic industrial base is struggling mightily, which is impacting the ability to do work in a timely fashion. For example, each year, a \u201csignificant number of work stoppages are attributable to the age and condition\u201d of the naval shipyard infrastructure, which is on average seven years older than industry standard.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Merger and acquisitions activity remained steady from the previous fiscal year, with 13 potential mergers reviewed by the DoD. But the total value of transactions increased from previous levels, thanks in part to three major mergers and acquisitions \u2015 United Technologies\u2019 <a href=\"https:\/\/www.defensenews.com\/industry\/2017\/09\/05\/united-technologies-cements-30b-deal-to-buy-rockwell-collins\/\" title=\"\" class=\"\" target=\"_blank\">acquisition of Rockwell Collins<\/a>, Northrop Grumman\u2019s <a href=\"https:\/\/www.defensenews.com\/industry\/2017\/09\/18\/northrop-grumman-approaching-deal-for-75b-purchase-of-orbital-atk\/\" title=\"\" class=\"\" target=\"_blank\">acquisition of Orbital ATK<\/a> and Ultra Electronics\u2019 planned acquisition of Sparton Corporation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b><a href=\"https:\/\/partner-mco-archive.s3.amazonaws.com\/client_files\/1527002508.pdf\" title=\"\" class=\"\" target=\"_blank\">Click here to read the full report<\/a><\/b>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>America&#8217;s aging workforce could limit the Pentagon&#8217;s ability to keep up with other nations, a new government report warns.<\/p>\n","protected":false},"author":7,"featured_media":29160,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":29,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[106,29,32],"tags":[],"coauthors":[3222],"class_list":["post-34699","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-brief","category-home","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"M3SCOBSSHJCETBKJ7CNDGUC57U","arc_canonical_url":"\/pentagon\/2018\/05\/22\/americas-industrial-base-is-at-risk-and-the-military-may-feel-the-consequences\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>America\u2019s industrial base is at risk, and the military may feel the consequences - C4ISRNet<\/title>\n<meta name=\"description\" content=\"America&#039;s aging workforce could limit the Pentagon&#039;s ability to keep up with other nations, a new government report warns.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"America\u2019s industrial base is at risk, and the military may feel the consequences\" \/>\n<meta property=\"og:description\" content=\"America&#039;s aging workforce could limit the Pentagon&#039;s ability to keep up with other nations, a new government report warns.\" 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