Department of Defence publishes supply chain resiliency report
The report will have particular ramifications for the aerospace and defence industry
The war in Ukraine means bold action is needed in support of supply chain resiliency in the US defence space, according to the US Department of Defense (DoD).
The DoD has issued a report titled ‘Securing Defense-Critical Supply Chains’. It sets out the department’s plan to strengthen the industrial base and establish a network of domestic and allied supply chain partners to meet national security needs, with particular ramifications for the aerospace and defence industry.
The average American aerospace company relies on approximately 20 first-tier suppliers and about 12,000 companies in the second and third tiers. Many components are manufactured outside of the USA, meaning support is needed for supply chain resiliency.
The report proposes various funding mechanisms, leveraging technological innovation and encouraging interagency, industry and international collaboration to secure supply chains that are deemed critical to the US.
The report has identified four areas of particular importance: Kinetic capabilities; energy storage and batteries; castings and forgings; and microelectronics. It also identifies four “strategic enablers” deemed necessary to build overall resilience in DoD supply chains: The workforce (including doctoral-level engineering skills); cyber posture; manufacturing; and the role of small business.
The report provides a comprehensive plan through 64 total recommendations, some “foundational”, and other focus-area specific, or linked to strategic enablers.
The seven foundational recommendations are: Building domestic production capacity; engaging with partners and allies; mitigating foreign ownership, control or influence (FOCI) and safeguarding markets; conducting data analysis; aggregating demand; developing common standards; and updating acquisition policies.