{"id":18319,"date":"2018-08-06T15:00:56","date_gmt":"2018-08-06T15:00:56","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2018\/08\/06\/efforts-underway-to-resuscitate-weapons-supply-chain\/"},"modified":"2026-08-07T21:43:10","modified_gmt":"2026-08-07T21:43:10","slug":"efforts-underway-to-resuscitate-weapons-supply-chain","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/smr\/space-missile-defense\/2018\/08\/06\/efforts-underway-to-resuscitate-weapons-supply-chain\/","title":{"rendered":"Efforts underway to resuscitate weapons supply chain"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 Defense companies are taking matters into their own hands \u2014 in partnership with the Pentagon \u2014 to <a href=\"https:\/\/www.defensenews.com\/industry\/2018\/07\/20\/business-org-hails-trump-arms-export-plan\/\" target=_blank>recover a withering supply chain<\/a> for the munitions market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Released in the spring of this year, the annual industrial capabilities report, put out by the Pentagon\u2019s Office of Manufacturing and Industrial Base Policy, concluded that the industrial base of the munitions sector is particularly strained \u2014 something the report blamed on the start-and-stop nature of related procurement over the last 20 years, as well as the lack of new designs being internally developed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For their part, primes are investing their own dollars to meet demand, particularly as the Pentagon plans to invest more than $20 billion in munitions in its next budget.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe went through a period over the last decade, where U.S. production requirements of munitions were at a fairly low rate compared to historical,\u201d said Frank St. John, executive vice president of Lockheed Martin\u2019s Missiles and Fire Control business. \u201cOur response was to work hard to bring international partners into the programs and fill that with foreign military sales requirements. What we\u2019ve seen over the last 18-25 months is a recognition by the department that they need to rebuild the stock on munitions. We\u2019ve seen a steady increase across the board in every one of our programs \u2014 rate increases from 20 percent to 80 percent.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But as primes expand factory capacity to achieve increased rates, suppliers are often limited in their ability to scale. That leaves Lockheed and Raytheon, the companies that together account for about 97 percent of the Defense Department\u2019s munitions and missile procurement funding, to identify critical areas that might have a single source and make investments to develop alternatives, avoiding any single points of failure.<\/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\/global\/europe\/2018\/07\/26\/thanks-to-inflation-airbus-takes-major-financial-hit-again-on-largest-military-program\/\" 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=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Airbus.jpg.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\">Thanks to inflation, Airbus takes major financial hit, again, on largest military program<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The structure of the contract with a group of European allies places heavy burden on the company.<\/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\">The Department of Defense is baking funds for such investments into the procurements, and structuring more munitions buys as multiyear contracts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re looking at a couple in some of our largest missile programs,\u201d said Taylor W. Lawrence, president of Raytheon\u2019s Missile Systems business. \u201cThat gives us the ability to predict the future. That also allows us to flow stability down into the supply base and makes it healthier over time. The most disruptive thing to us in industry [is] uncertainty, and variability in quantities they\u2019re buying. The more we can predict, the better the health of the supply base will be.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But even if a pool of first-tier suppliers can be stood up by joint efforts of primes and the Pentagon, dwindling materials used in the systems pose a more daunting challenge. As one example noted in the report, the department is facing rising costs for ammonium perchlorate, used in almost all DoD missile programs, because the sole is only operating at 10-15 percent of capacity due to limited demand. Similarly, there is no domestic supplier for Dechlorane Plus 25, a component in the insulation of weapons; the sole source is Occidental Chemical in Belgium.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Mackenzie Eaglen, a defense expert with the American Enterprise Institute, said in a May interview with Defense News that policymakers will likely want to start considering special protections and\/or subsidies when needed. That said, \u201cI\u2019m not sure the bell can be un-rung in the case of Chinese suppliers,\u201d she added.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In coordination with the DoD, primes are more often buying additional stock of the at-risk components to buy time to work alternative solutions, St. John said. They also identify alternative suppliers when they can, domestically or in an ally nation where a steady source of supply is fair to assume.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also, to reinvigorate the supply of raw materials, efforts are underway to develop and qualify brand-new plotters domestically.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cSo far, we\u2019ve been able to address the needs,\u201d St. John said. \u201cBut it is different than it was years ago, when DoD and military applications were on the leading edge. Now we\u2019re buying along with the Apples and Samsungs of the world. We\u2019re not driving the market the way we used to \u2014 as opposed to being the big dog.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><i>Aaron Mehta contributed to this report.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Primes are investing their own dollars to meet demand, particularly as the Pentagon plans to invest more than $20 billion in munitions in its next budget.<\/p>\n","protected":false},"author":7,"featured_media":12789,"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":129,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[160,29,162,12,36,19,99,129,30],"tags":[],"coauthors":[2572],"class_list":["post-18319","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-digital-show-dailies","category-digital-show-daily","category-industry","category-newsletters","category-pentagon","category-smd","category-space-missile-defense","category-smr"],"acf":{"subheadline":"","legacy_arc_id":"E7X3EQCMTBH3NLFEQG2EAZPUNI","arc_canonical_url":"\/smr\/space-missile-defense\/2018\/07\/27\/efforts-underway-to-resuscitate-weapons-supply-chain\/","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>Efforts underway to resuscitate weapons supply chain - Defense News<\/title>\n<meta name=\"description\" content=\"Primes are investing their own dollars to meet demand, particularly as the Pentagon plans to invest more than $20 billion in munitions in its next budget.\" \/>\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=\"Efforts underway to resuscitate weapons supply chain\" \/>\n<meta property=\"og:description\" content=\"Primes are investing their own dollars to meet demand, particularly as the Pentagon plans to invest more than $20 billion in munitions in its next budget.\" \/>\n<meta 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