Defense technology is advancing at lightning speed—and manufacturing is at the center of it all. In this Supply Chain Byte, Lisa Anderson discusses how defense tech manufacturers are catching up to meet urgent national needs. Hear about the latest investments and initiatives, the importance of artificial intelligence and advanced technologies such as autonomous vehicles, and what innovative companies are doing to set the pace for the future of defense.

Defense tech requires an immediate focus on innovation and scale. For example, China built almost 1300 ships last year while the U.S. was in process of building three. Doubling or quadrupling output will not come close to sufficient. Instead, a step change in scale is required. Thus, the federal government allocated $150 billion in what has been referred to as the One Big Beautiful Bill (learn more about manufacturers benefits here). In addition, as part of the trade agreement with South Korea in response to the tariffs, they have committed to invest $150 billion into shipbuilding and started to roll it out with an investment into the Philly shipyards. 

There are exciting innovations in the works as well. DARPA (Defense Advanced Research Projects Agency) has made advancements. The U.S. Navy’s first fully autonomous ship was put into the water in Washington. It is called the USX1 Defiant and holds great promise. Private industry is investing as well. For example, Saronic, a company that provides naval and maritime forces with the most intelligent Autonomous Surface Vessels available has built the fastest ship built in the U.S. since World War II. It is a critical necessity to scale up rapidly. They expect to produce 50/year, a tremendous increase with just one company. 

Forward-thinking executives will focus on defense tech manufacturing and think at least three steps ahead. Utilize tools such as SIOP (Sales Inventory Operations Planning) to get ahead of your demand and proactively plan supply to ensure ramp up success, revenue growth and profitability. Sourcing end-to-end supply chains and focusing on training and developing manufacturing and technical talent will be of paramount importance. Focus on innovation and scaling up rapidly and success will follow.

If you are interested in reading more on this topic:
Advanced Technologies in Supply Chain