Deputy Secretary of Defense Delivers Defense Industrial Base Report to President Trump
(Source: US Department of Defense; issued Oct. 05, 2018)
Today, Deputy Secretary of Defense Pat Shanahan, on behalf of Secretary of Defense Jim Mattis, presented a report, Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States, to President Donald J. Trump, pursuant to Executive Order 13806.

President Trump directed Secretary Mattis to lead a whole-of-government effort to identify and assess risks in the manufacturing and defense industrial base. Based on this review, the Secretary made recommendations to the President to ensure a robust, resilient, secure, and ready manufacturing and defense industrial base.

The recommendations outlined in this report reflect the Administration's commitment to securing the industrial capabilities of the United States. The action that followed the President's Executive Order included a multi-agency risk assessment of the industrial base of the United States, which involved experts from the Departments of Defense, Commerce, Labor, Energy, Homeland Security, and other agencies and offices.

The report provides recommendations to address immediate risks identified in the manufacturing and defense industrial base and initiates follow-on efforts to create a strategy for building this base for next-generation technologies. This comprehensive and government-wide effort demonstrates that manufacturing and the defense industrial base are vital to not only our Nation's economic security, but also to our national security.


Click here for the report (146 PDF pages), on the Pentagon website.

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BAE Systems Welcomes Manufacturing and Defense Industrial Base Report
(Source: BAE Systems; issued Oct 06, 2018)
BAE Systems, Inc. welcomes the Administration’s work on Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States.

A healthy manufacturing and defense industrial base and strong supply chains are essential components to achieving the Department of Defense’s National Defense Strategy and providing economic prosperity to the United States.

BAE Systems, Inc. was pleased to support this assessment. We look forward to continuing to work with the Administration on implementing recommendations to address gaps and weaknesses in the defense industrial base, especially in the areas of curbing burdensome regulations and policies, and addressing workforce challenges related to diminishing STEM and trade skills.

BAE Systems, Inc. continues to invest significantly in its own manufacturing industrial base network, its people and its supplier base to diversify production, increase capacity and efficiency and expand jobs across our enterprise in York, Pa., Elgin, Okla., Aiken, SC, Anniston, Ala and Nashua, NH.

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AIA Welcomes Industrial Base Assessment
(Source: Aerospace Industries Association; issued Oct 05, 2018)
ARLINGTON, Va. --- The Aerospace Industries Association welcomes today’s release of the Administration’s assessment of the manufacturing and defense industrial base, as directed by Executive Order 13806 in July 2017.

“Guaranteeing the health of the American manufacturing and defense industrial base is a critical national security and economic priority as the United States combats today’s threats and those we’ll face tomorrow. We applaud the Administration’s focus on these issues and look forward to working together to implement the assessment’s recommendations with the same spirit of industry-government cooperation and engagement that led to today’s report,” said AIA President and CEO Eric Fanning.

On behalf of AIA’s more than 340 member companies, and the 2.4 million-person workforce serving in our industry, AIA convened discussions between industry experts and the Department of Defense officials leading the assessment to examine specific manufacturing, supply chain, and workforce challenges. In April, we issued a paper recommending policies in four areas that are essential parts of an innovative, responsive and resilient industrial base: adequate and timely budgets, streamlined acquisition policies, stewardship of key capabilities, and recruiting and retaining a talented and capable workforce.

In light of these recommendations, we are pleased to see that the Administration’s assessment includes measures to: increase our focus on science, technology, engineering, mathematics, and other tradecraft; reduce the personnel security clearance backlog; pursue advanced technology to counter future threats; develop shared industrial base strategies with our allies and partners; and, avoid reliance on unstable or single-source providers.

Ultimately, while it is essential that the Administration focus on addressing the specific challenges facing the industrial base, none of the advancements in acquisition policy, key capabilities or workforce will matter without adequate DOD budgets. A return to the spending levels imposed by the Budget Control Act will devastate the progress made by the Administration to foster a resilient and innovative manufacturing and defense industrial base that can sustain U.S. and allied forces in a severe and prolonged conflict.

We look forward to working with the Administration and Congress to streamline regulations, sustain a healthy workforce, preserve specialized capabilities and secure the resources required to ensure the vitality of our industrial base.

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Northrop Grumman Statement in Support of the Presidential Report: Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Resiliency of the United States
(Source: Northrop Grumman; issued Oct 05, 2018)
FALLS CHURCH, Va. --- In support of President Donald Trump’s announcement and assessment of the manufacturing and defense industrial base, Northrop Grumman Corporation issued the following statement:

“We applaud the release of this report and thank the President for his leadership in reinvigorating the U.S. defense industrial base, which is so important to our nation’s security and economy.”

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Review Warns Defense Industrial Base Faces 'Unprecedented Set of Challenges’
(Source: Center for Strategic and International Studies; issued Oct 05, 2018)
Earlier today, the administration formally released the long-awaited findings of its review of the defense industrial base, “Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States.”

Q1: What is the Defense Industrial Base report?

A1: The Defense Industrial Base report is the output of the defense industrial base review mandated by last July’s Executive Order (EO) 13806 —Presidential Executive Order on Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States. EO 13806 required the Secretary of Defense, in coordination with an interagency team, provide an unclassified report assessing the capacity and resilience of the defense industrial base and its supply chains. Furthermore, the EO mandated an assessment of future needs, current gaps in the defense industrial base, defined as either non-existing, threatened, or single-point of failures, and a comprehensive list of potential contingencies that could disrupt the defense industrial base.

In addition to reviewing the strength and capacity of the defense industrial base, EO 13806 mandated that the report includes recommendations for potential legislative, regulatory, and policy changes required to avoid or prepare for contingencies; fortify vulnerable supply chains identified in the review; or strengthen the manufacturing capacity and resilience of the defense industrial base.

Q2: Why did the president order a review of the defense industrial base?

A2: The administration ordered a review of the defense industrial base given concerns about its current and future health and its importance to sustaining U.S. military superiority. A healthy, robust and advanced defense industrial base has been one of the United States’ asymmetric advantages over its adversaries since World War II. However, in recent years, there have been concerns about the health and future of the defense industrial base given the defense budget cuts triggered by the 2011 Budget Control Act and sequestration and broader U.S. manufacturing trends. A CSIS study released earlier this year found that the number of Department of Defense (DoD) prime vendors declined by 20 percent over the course of the most recent defense drawdown, with the largest declines in the facility-related and construction sector. (end of excerpt)


Click here for the full report, on the CSIS website.

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