Breaking Down the 2023 National Defense Industrial Strategy
National Defense Industrial Strategy (NDIS): Overview
The Department of Defense released its first-ever National Defense Industrial Strategy (NDIS) last month. The NDIS calls on both the public and private sectors for focused, dedicated efforts to build and secure industrial capability and capacity necessary to ensure our military has the material and resources it needs to remain resilient in the face of adversaries. The strategy prioritizes resilient supply chains, workforce readiness, flexible acquisition, and economic deterrence to modernize the defense industrial ecosystem.
Key Priorities of NDIS
NDIS outlines four main priorities:
Ensuring supply chain resilience through diversification and cybersecurity
Preparing a skilled workforce for technological advancements
Adopting flexible acquisition processes to streamline defense procurement
Reinforcing economic security to maintain a competitive edge
Supply Chain Resiliency
Objective:
The NDIS aims to prepare the United States military to adequately absorb supply shocks, maintain critical operations during shocks and recover swiftly.
Challenges:
Recent global events, such as Russia's invasion of Ukraine, underscore the importance of resilient supply chains
The increased demand for Western defense equipment prompted investments to scale up production capabilities, highlighting the need for a robust and diverse supplier network, especially at the sub-tier level
Existing Solution:
The Interagency Supply Chain Disruptions Task Force enhances collaboration across federal departments and agencies to mitigate the effects of supply chain disruptions
Proposed Solutions:
The DoD recognizes the need to embed resilience within the defense industrial base, the Department of Defense and, more broadly, the U.S. government and its allied networks
Protect the health of smaller suppliers, expand manufacturing capacity and improve visibility into supply chains
A multi-faceted approach to supply chain resiliency includes incentivizing industry investments in capacity, optimizing inventory and stockpiles, fostering domestic production, diversifying the supplier base and leveraging data analytics for better supply chain visibility
Strengthening international production cooperation and improving the Foreign Military Sales remain crucial
Enhancing cybersecurity within the industrial sector is a key component of safeguarding supply chains against potential cyber threats
Workforce Readiness
Objective:
Build a resilient workforce capable of meeting the demands of modern defense challenges
Challenge:
Diminishing interest in industrial careers amongst the workforce and the lack of effective training programs
Proposed Solutions:
The DoD will prioritize workforce development by launching initiatives to: spark interest in industrial jobs, upskill and reskill current workers, target critical defense skill sets, expand apprenticeships and internships, change the perception of industrial careers and broaden recruitment efforts to attract talent from non-traditional backgrounds
The U.S. defense industrial base must also leverage international partnerships to exchange best practices in workforce training and management
Flexible Acquisition
Objective:
Develop a flexible acquisition system for the Department of Defense that swiftly adjusts to the demands of modern warfare
Challenge:
The evolving nature of conflicts, as exemplified by the Russian Federation's actions in Ukraine, underscores the urgency of developing a flexible acquisition system; protracted military engagements can lead to rapid depletion of military resources, and sluggish developing and deployment of military resources can be detrimental to achieving national security objectives
Proposed Solution:
Standardize defense platforms and support systems for efficiency, while safeguarding the ability to customize these same platforms and technologies to meet specific mission requirements
Economic Deterrence
Objective:
Establish fair and effective market mechanisms to maintain a healthy defense industrial ecosystem in collaboration with international allies and partners
Challenge:
China and Russia threaten to disrupt the established order of fair trade and free markets through unfair trade practices, corporate espionage and cyber attacks as well as predatory adversarial investments that could undermine the U.S.’s industrial supply chains and economic health
Proposed Solution:
United States must bolster relationships with its allies by enhancing economic security agreements, promoting interoperability standards and sharing science and technology
Conclusion
The primary objective of the NDIS is to transform the defense industrial landscape. Particularly, the Department of Defense seeks to modernize existing facilities, expand production capabilities and incorporate new entrants into the defense market. To do so, the DoD will invest in R&D, foster a skilled workforce and work with our allies to ensure secure supply chains, among other action items. The NDIS calls for a united, global effort, encouraging participation from a wide range of stakeholders and aiming to create a more resilient and capable defense network that can sustain the pressures of modern geopolitical challenges.