DOD Releases First Defense Industrial Strategy

The Department of Defense (DOD) has unveiled its first National Defense Industrial Strategy, a comprehensive 59-page document outlining priorities aimed at fortifying the U.S. defense industrial base in the face of evolving national security challenges.

The strategy, released today, emphasizes the need for a modern and resilient defense industrial ecosystem to deter adversaries and address emerging threats.

Laura D. Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy, emphasized the urgency of strengthening the defense industrial base as global adversaries, particularly China, enhance their military capabilities to levels unseen since World War II. Taylor-Kale underscored the strategy's role in supporting allies such as Ukraine in countering Russian aggression and Israel in its conflict with Hamas.

The National Defense Industrial Strategy focuses on four critical areas over the next three to five years: resilient supply chains, workforce readiness, flexible acquisition, and economic deterrence. To achieve resilient supply chains, the strategy calls for public-private partnerships, risk-sharing mechanisms, and technology-sharing structures to incentivize industry resilience and capacity expansion.

The strategy also advocates for increasing stockpiles of strategic systems, diversifying the supplier base, expanding production methods, and addressing cyber threats to the supply chain. Workforce development is a key aspect, with a focus on creating a skilled, diverse workforce representative of America through skill development programs and advanced manufacturing pipelines.

Flexibility in acquisition strategies is highlighted, promoting interoperability with key partners and prioritizing commercial, off-the-shelf acquisitions for innovation. Strengthening economic security agreements and sharing technology with allies are also emphasized for economic deterrence.

Defense officials emphasized that the strategy is more than an aspirational document, with an implementation plan in its final stages. The plan will include measurable actions and metrics to track progress, with an unclassified overview expected in February and the full classified version in March.

Stakeholder engagement from industry and government, initiated in March 2023 under Deputy Defense Secretary Kathleen Hicks, contributed to the strategy's development.

The document aligns with President Joe Biden's broader efforts to bolster domestic manufacturing and critical supply chains, reflecting a commitment to building a modernized defense industrial ecosystem to meet global challenges. Taylor-Kale stressed the need for immediate action, signaling the strategy's role as a starting point for critical initiatives.