Getting Creative in Strengthening our Defense Industrial Base

A recent opinion piece was published a few weeks ago on America’s need to modernize its approach to the production of munitions. Expertly authored by GEN Joseph Martin (USA, ret.) and LTG David Deptula (USA, ret.), the article hit on a number of highly important issues regarding America’s defense industrial base, the need for creative thinking in how we plan and procure the tools for the nation’s security, and some of the hurdles we need to get over in order to improve our position on a number of economic and governmental fronts. 

Government sets the requirements, and industry responds to address the stated need. But industry must receive the right signals from government in order to forecast, invest, hire up, tool up, and prepare to meet the government’s objectives.  Delays, false starts and constantly shifting requirements not only make things difficult, but outright discourage a lot of willing and eager providers from investing in the system. This is disappointing because it means lost opportunity for the private sector and missed innovation for the government. Additionally, the relationship between industry and government must be transparent and complimentary to avoid hiccups, maintain clear communications, and ensure that taxpayer dollars are being spent wisely. Moreover, in times of urgency or major national concern, the higher imperative demands that industry and government work together as partners to get the job done right.

There is another issue that needs to be continuously kept in mind and more forcefully addressed moving ahead – and that is the impact of increasingly uncertain economic conditions and instability that are driving prices sky-high and complicating efforts to deliver cost-effective solutions on time. In the case of companies that provide a highly specialized or unique item or technology for the government, these mercurial economic swings and complications can impact national security.

These last few years have been extremely volatile for businesses in America, for companies who support government and those who don’t.  Wincingly high inflation, supply chain strangulation and other uncertainties have left their mark, and we continue to deal with these fluctuating problems daily.

But the reality is, with enduringly high interest rates, growing workforce issues, lingering high costs and concerns about access to vital raw materials, these cross-mixing challenges aren’t probably going away anytime soon.  As such, industry – particularly small businesses who can’t access credit, or who really feel the trickle-down crunch from high prices and therefore demands on wage increases – are going to keep feeling the burn.  U.S. government agencies who depend on a wide defense and technological industrial base are probably going to have maintain flexibility in how they interact with contractors for several years, rather than just implementing temporary accommodations until the dust settles.  There may in fact need to be lasting regulatory changes or legislative solution to account for these realties.     

On a positive note, it is encouraging to see innovative contracting mechanisms and technology laboratories being more readily created and used by government – to get work on contract quickly, to cut the paperwork burden, and to get disruptive new gear into the hands of the operators who need it. This should start to become a norm rather than an exception. The private sector – particularly in the tech industry – generally moves faster than the government, and the more that our defense and national security agencies rely on these fast-moving applications and platforms to protect the nation, the more they will need to adopt a faster-turn acquisition attitude and approach in order to keep pace with our competitors who are moving just as quickly. 

Several critical issues are now beginning to twist together, with real impact on everything from policymaking, to legislative formulation, to industrial decision-making. This ranges from the ongoing Russian war on Ukraine and how the world intends to support the Ukrainians, to emerging concerns about the economy over the next year, to wider tensions in strategically vital parts of the world and how we expect to maintain peaceful and ready access to those regions.

All of these concerns are not theoretical…they are not the wonky predictions of think-tanks.  They are real and staring us in the face.  Policymakers and lawmakers in D.C. will need to get creative in order to strengthen and increase the robustness of our defense industrial base.

Grant Anderson, P.E. is the President & CEO of Paragon Space Development Corporation, a recognized leader in life support and thermal control in extreme environments. He holds a B.S. in Mechanical Engineering and an M.S. in Aeronautical & Astronautical Engineering from Stanford University.