{"id":66704,"date":"2024-01-11T15:40:55","date_gmt":"2024-01-11T15:40:55","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2024\/01\/11\/pentagons-first-industrial-strategy-calls-for-generational-change\/"},"modified":"2026-08-08T01:04:01","modified_gmt":"2026-08-08T01:04:01","slug":"pentagons-first-industrial-strategy-calls-for-generational-change","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/pentagon\/2024\/01\/11\/pentagons-first-industrial-strategy-calls-for-generational-change\/","title":{"rendered":"Pentagon\u2019s first industrial strategy calls for \u2018generational\u2019 change"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><i>Editor\u2019s note: This story has been updated to include information from Pentagon officials.<\/i><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 America\u2019s defense industry needs \u201cgenerational\u201d change to keep pace with competitors like Russia and China.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is the Pentagon\u2019s assessment in its first-ever National Defense Industrial Strategy, arriving at a moment of extreme demand. The U.S. is supporting partners threatened abroad \u2014 including Ukraine, Israel and Taiwan \u2014 forcing careful management of American aid and readiness.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis strategy is about balancing the tension points,\u201d said Halimah Najieb-Locke, the Pentagon\u2019s acting deputy for industrial base policy, in a briefing with reporters.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The document is a self-described \u201ccall to action,\u201d with almost 50 pages of recommendations to build a \u201cfully capable 21st century\u201d defense sector. It features the Pentagon\u2019s most up to date<b> <\/b>thinking on the health of its suppliers, stretched thin after Russia\u2019s invasion of Ukraine and the disruptive COVID-19 pandemic. America still builds the best weapons in the world, the strategy says, but that alone isn\u2019t enough in a more competitive world.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The U.S. \u201cmust have the capacity to produce those capabilities at speed and scale to maximize our advantage,\u201d it says.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That advantage may be narrowing in part because of America\u2019s main competitor. In the last 30 years, the document says, China \u201cbecame the global industrial powerhouse in many key areas \u2014 from shipbuilding to critical minerals to microelectronics.\u201d China\u2019s capacity, the document says, in some cases surpasses that of America and its allies in Asia and Europe.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Still, Cynthia Cook, a defense industry expert at the Center for Strategic and International Studies think tank, says China\u2019s advances are only part of what\u2019s motivating this work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI would not say that that\u2019s the entire purpose &#8230; behind the strategy,\u201d she said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead, Cook said, the document is meant to be the summit of more than six years of Pentagon work. Former President Donald Trump ordered the Defense Department to review its industrial base early in his term, <a href=\"https:\/\/dml.armywarcollege.edu\/wp-content\/uploads\/2023\/01\/DoD-Assessing-and-Strengthening-Manufacturing-and-DIB-2018.pdf\">leading to a report issued in 2018<\/a>. Since then, more reviews have followed, including <a href=\"https:\/\/media.defense.gov\/2022\/Feb\/15\/2002939087\/-1\/-1\/1\/STATE-OF-COMPETITION-WITHIN-THE-DEFENSE-INDUSTRIAL-BASE.PDF\">one on supplier competitiveness<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAll of these factors together make it fairly clear that it\u2019s time for a rethink of how the department manages industry,\u201d said Cook. \u201cWithout a strategy, it\u2019s going to be one-offs here and there.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The document is split into four sections, focusing on supply chains, workforce, Pentagon acquisition and the American economy overall. There are more than two dozen recommendations, which include diversifying the Defense Department\u2019s suppliers, training more workers for industry-related careers, increasing commercial acquisitions and sharing more technology with U.S. partners.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Neither the problems nor the remedies listed are new. They aren\u2019t meant to be, said Cook. The value of the strategy, she said, is its ability to coordinate industrial base work across the Pentagon, including in the services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cPart of this strategy is really marshaling a lot of what we\u2019ve already been doing within the department,\u201d said Assistant Secretary of Defense for Industrial Base Policy Laura D. Taylor-Kale, also speaking at the briefing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Specifically, she referenced a map of the supply chains for 110 different weapons systems the Pentagon has been developing since November. This map, added Najieb-Locke, will help find links further down the supply chain that are particularly brittle \u2014 whether due to approaching obsolescence or being a single point of failure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Speaking at the Reagan National Defense Forum in December, Undersecretary of Defense for Acquisition and Sustainment Bill LaPlante said the document is also meant to be a broader signal to industry.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Najieb-Locke elaborated on that point Thursday. On one end, the strategy is meant to signal longer-term commitment to its current suppliers by putting the department\u2019s goals in writing. On the other, it affirms that the Pentagon needs to work more with non-traditional companies, particularly those in the innovation space.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re answering the industry\u2019s call for consistent demand signal by organizing ourselves and targeting our efforts,\u201d she said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite that, some former defense officials and analysts who spoke with Defense News were skeptical of the strategy\u2019s value. Heidi Peters, a defense industry expert at the RAND Corporation think tank, questioned why there needed to be a new strategy when the Pentagon already publishes so much literature on industry.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">David Berteau, president of the Professional Services Council, which represents government contractors, said the strategy was a good \u201cfirst step,\u201d but he wants to see more attention paid to sustaining systems rather than just buying them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Even more, Berteau said he was focused on how the strategy would be implemented, something he said is \u201cmore important than the strategy itself.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While reshaping the defense industry may take a generation, the document said, it has shorter-term goals for the next three to five years. The Pentagon expects to publish an unclassified implementation plan in February \u2014 and a classified one later in March, said the officials briefing Thursday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The classified plan will focus on many of the existing authorities the Pentagon has, such as the Defense Production Act, which Taylor-Kale said are \u201cunderutilized.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The implementation plan will feature a list of priorities and metrics to gauge the strategy\u2019s success, said Najieb-Locke. One of those priorities in the next five years is to create a faster and more stable supply of \u201clong lead items,\u201d which slow production, she said. To do so, she added, the department will have to better track its lower-tier suppliers, who sometimes don\u2019t even know their work is supporting the Pentagon.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That need makes it more important for the Defense Department to continue speaking with partners across the government and in industry, Taylor-Kale said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re not going to come out of our our offices, so to speak, talk to people in and then go back in and shut the door,\u201d she said. \u201cWe\u2019re continuing the conversation.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The National Defense Industrial Strategy describes itself as a &#8220;call to action&#8221; to help America keep pace with competitors like China and Russia<\/p>\n","protected":false},"author":7,"featured_media":117556,"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":19,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":{"8":{"categories":["home","budget","management","regulations","acquisition","contracting","govcon"],"primary_category":"home"},"9":{"categories":["home"],"primary_category":"home"}}},"categories":[160,12,19],"tags":[],"coauthors":[3458],"class_list":["post-66704","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-industry","category-pentagon"],"acf":{"subheadline":"","legacy_arc_id":"GCDAXX4QFVCSFASJNJDHCXQME4","arc_canonical_url":"\/pentagon\/2024\/01\/11\/pentagons-first-industrial-strategy-calls-for-generational-change\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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