{"id":55974,"date":"2020-02-05T16:30:55","date_gmt":"2020-02-05T16:30:55","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2020\/02\/05\/does-the-defense-industrial-base-deserve-a-passing-grade\/"},"modified":"2026-08-08T00:06:11","modified_gmt":"2026-08-08T00:06:11","slug":"does-the-defense-industrial-base-deserve-a-passing-grade","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/industry\/2020\/02\/05\/does-the-defense-industrial-base-deserve-a-passing-grade\/","title":{"rendered":"Does the defense-industrial base deserve a passing grade?"},"content":{"rendered":"\n

WASHINGTON \u2014 America\u2019s defense-industrial base remains a global leader, but there are warning signs on the horizon, claims a new study from a leading industry association.<\/p>\n\n\n\n

The National Defense Industrial Association gives a \u201cmediocre \u2018C\u2019 grade\u201d for the health of America\u2019s defense industry, reflecting \u201ca stressed defense industrial base that is trending negative.\u201d The finding is part of a new \u201cVital Signs\u201d report, envisioned as the first in an annual series looking at the health of the defense-industrial base.<\/p>\n\n\n\n

The report, done in conjunction with government data firm Govini, serves as a follow-on to a White House-mandated report on the same topic, which was released in October 2018<\/a>.<\/p>\n\n\n\n

\u201cThe U.S. defense industrial base is better than the rest, but its health and readiness present several areas in need of improvement \u2014 even during a time of cyclical expansion,\u201d the report claims. \u201cFlattening budgets and growing international competition for defense-related sales will likely challenge that position going forward.\u201d<\/p>\n\n\n\n

In a statement, retired Air Force Gen. Hawk Carlisle<\/a>, president and CEO of NDIA, said: “The United States and China are locked in a war for industrial supremacy unlike any struggle in our history, which necessitated this report. China is closing the research and development gap the United States narrowly enjoys, so knowing the full measure of the defense industrial base to monitor and counter this rival is paramount for our nation\u2019s continued security.\u201d<\/p>\n\n\n\n

Of particular concern is industrial security, such as the protection of intellectual property and ensuring cybersecurity, which NDIA says is deteriorating year over year. Notably, the report comes just days after the U.S. Defense Department formally unveiled its new cybersecurity requirements<\/a> for defense contractors; however, those requirements will take years to implement.<\/p>\n\n\n\n

Another concern is the people who build defense systems, with NDIA putting the size of the defense-related workforce around 1.1 million, \u201csubstantially below its mid-1980s peak size of 3.2 million.\u201d A major issue that has been identified in industrial base reports from the Pentagon in recent years concerns the age of that workforce, but NDIA also notes the security clearance process may be turning individuals away from defense-related jobs.<\/p>\n\n\n\t