{"id":31938,"date":"2026-07-13T15:43:22","date_gmt":"2026-07-13T15:43:22","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2026\/07\/13\/us-industrial-base-is-becoming-stronger-for-wartime-production-study-finds\/"},"modified":"2026-08-08T17:42:47","modified_gmt":"2026-08-08T17:42:47","slug":"us-industrial-base-is-becoming-stronger-for-wartime-production-study-finds","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/defense\/2026\/07\/13\/us-industrial-base-is-becoming-stronger-for-wartime-production-study-finds\/","title":{"rendered":"US industrial base is becoming stronger for wartime production, study finds"},"content":{"rendered":"\n

As recent conflicts consume weapons<\/a> at a ferocious rate, America\u2019s defense industrial base<\/a> is becoming more prepared to sustain a major war, according to a new report. <\/p>\n\n\n\n

\u201cThe trends are moving in the right direction,\u201d Jerry McGinn, who co-authored the study<\/u><\/a> for the Center for Strategic and International Analysis think tank, told Defense News. <\/p>\n\n\n\n

However, the study \u2014 described as a progress report on reforms to the defense manufacturing<\/a> and acquisition system \u2014 still found numerous problems with ramping up and sustaining wartime production<\/a>. <\/p>\n\n\n\n

For example, \u201caccording to several measures \u2014 manufacturing lead times, critical munitions and materials stockpiles, and supply chain<\/a> security \u2014 the U.S. industrial base has a long way to go to achieve resilience,\u201d warned the analysis by CSIS\u2019s Center for the Industrial Base. <\/p>\n\n\n\n

CSIS did find measurable improvements since November 2025, when Secretary of Defense Pete Hegseth vowed<\/u><\/a> to \u201ctransform the entire acquisition system to operate on a wartime footing.\u201d <\/p>\n\n\n\n

Hegseth also promised to \u201cinspire American industry to become a wartime industrial base that focuses on speed and volume.\u201d <\/p>\n\n\n\n

Most striking is the number of new companies in the defense field. <\/p>\n\n\n\n

\u201cRoughly 10,000 new firms have entered the market in the past two years and nontraditional companies received over $120 billion in contract obligations in FY 2025, adding competition and innovation to the sector,\u201d CSIS noted. \u201cMunitions contract obligations have risen 330 percent since FY 2010. Spurred by this increased demand and depleted inventories, the Pentagon is signing multiyear agreements with munitions producers and suppliers on a historic scale.\u201d <\/p>\n\n\n\n

The military is also responding to depleted stockpiles of expensive guided weapons that have been rapidly consumed by the Iran and Ukraine wars. <\/p>\n\n\n\n

The Pentagon\u2019s 2027 budget request for munitions allocated 49% to low-cost munitions \u2014 defined as costing less than $600,000 apiece \u2014 rising to 70% by 2031. <\/p>\n\n\n\n

The U.S. is also strengthening its defense supply chain, such as \u201cmultiyear procurement agreements, direct-to-supplier investments, and leaner acquisition pathways,\u201d as well as investing in defense companies such as L3Harris Missile Solutions, according to CSIS. <\/p>\n\n\n\n

However, while this signals government commitment to defense production, it \u201calso complicates competitive dynamics within the industry as new entrants and established suppliers alike seek to meet rapidly growing demand for munitions at scale.\u201d <\/p>\n\n\n\n

Also notable is federal investment in rare earths, which has seen production soar from 95 tons in 2022, to 8,900 tons in 2025. Nonetheless, \u201cthe erosion of domestic rare earth manufacturing capacity and the rise of Chinese control took decades to unfold, however, and it will take several years of enduring effort for the United States and its allies to build, scale, and sustain the production capacity of these key defense inputs.\u201d <\/p>\n\n\n\n

Exports of U.S. arms, or cooperative multinational projects such as the F-35 fighter, have also become a pillar of America\u2019s defense industry. Foreign Military Sales, or FMS, have more than tripled, from less than $20 billion in 2015 to more than $80 billion in 2025. <\/p>\n\n\n\n

The Trump administration wants to take this further with the \u201cAmerica First Arms Transfer Strategy,\u201d<\/u><\/a> launched in February 2026. <\/p>\n\n\n\n

\u201cThe United States will use foreign purchases and capital to support domestic reindustrialization, expand production capacity, and improve the resilience of the United States defense industrial base,\u201d the White House executive order declared. <\/p>\n\n\n\n

Ultimately, the federal government can control defense production through the products it demands, the prices it is willing to pay, and the incentives it offers. <\/p>\n\n\n\n

\u201cIt\u2019s a monopsony,\u201d McGinn said. \u201cGovernment sets the market. Government can regulate the market. So, if the government wants different outcomes, it changes how it buys.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"

As recent conflicts consume weapons at a ferocious rate, America\u2019s defense industrial base is becoming more prepared to sustain a major war.<\/p>\n","protected":false},"author":7,"featured_media":106356,"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":35,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[35,31],"tags":[],"coauthors":[3339],"class_list":["post-31938","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-defense","category-home"],"acf":{"subheadline":"","legacy_arc_id":"H6MO2VYKOZDBBA4IKOMCSFERG4","arc_canonical_url":"\/industry\/techwatch\/2026\/07\/13\/us-industrial-base-is-becoming-stronger-for-wartime-production-study-finds\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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