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This monograph focuses on two main questions concerning what is most accurately described as the 'military-industrial-Congressional' complex. First, does it function like a normal free market in which the forces of supply and demand, Adam Smith's invisible hand, can be relied upon to allocate resources efficiently, encourage innovation, and exhibit the kind of price sensitivity evident in commercial markets such as consumer electronics? Second, what has been the Department of Defense's approach to sustaining a strong, technologically vibrant and financially successful domestic defense industry? The United States' defense industrial base strategy should ensure the preservation of those few sectors that are currently critical to American national security, adding over time any emerging sectors that become critical, and ruthlessly underfunding or jettisoning any sectors that cease to be critical.
Since World War II, the Department of Defense (DoD) has been able to count on America's defense industrial base (DIB) always being ready to design and produce the world-class weaponry on which the U.S. military has long relied. But the U.S. DIB is considerably smaller today than it was following the Cold War's end. Now the Pentagon confronts a period of shrinking defense budgets at the same time the international security environment is posing new military challenges, such as the emergence of anti-access/area-denial capabilities, the growing threat to space-based systems, and the proliferation of weapons of mass destruction. The Defense Department has never had a coherent, long-term strategy for sustaining the defense industrial base's core competencies. Absent a strategy that proceeds from deciding first what to keep rather than what to cut, the possibility is growing that a day will come when the country's industrial base will no longer possess all the critical design and manufacturing capabilities that the U.S. military needs. This study provides a diagnosis of the military competitions most likely to dominate military relationships between the United States and prospective adversaries over the next decade or two, and the corresponding DIB competencies where the U.S. military will need to sustain advantage.
International defense industrial sectors have faced many challenges over the last twenty years, and in the current environment they struggle with the need to maintain critical aspects of the defense industrial base. Because the defense sector in the US is interconnected with other global defense and industry sectors, decisions made in one sector impact those of other countries and other areas of the economy. Dr. Hensel examines the interrelationship between these forces both historically and in the current environment, assessing the implications for the future global defense industrial base.
This excellent report was released in October 2018. America's manufacturing and defense industrial base ("the industrial base") supports economic prosperity and global competitiveness, and arms the military with capabilities to defend the nation. Currently, the industrial base faces an unprecedented set of challenges: sequestration and uncertainty of government spending; the decline of critical markets and suppliers; unintended consequences of U.S. Government acquisition behavior; aggressive industrial policies of competitor nations; and the loss of vital skills in the domestic workforce. Combined, these challenges - or macro forces - erode the capabilities of the manufacturing and defense industrial base and threaten the Department of Defense's (DoD) ability to be ready for the "fight tonight," and to retool for great power competition. The following report explains the macro forces impacting the industrial base, identifies primary categories of risk, illustrates impacts within sectors, and provides recommendations for mitigation.I. Executive Summary * II. Introduction * III. Methodology * IV. An Overview of America's Manufacturing and Defense Industrial Base * V. Five Macro Forces Driving Risk into America's Industrial Base * VI. Ten Risk Archetypes Threatening America's Manufacturing and Defense Industrial Base * VII. A Blueprint for Action * Appendix One: Executive Order 13806 * Appendix Two: Sector Summaries * Appendix Three: Contributing U.S. Government Agencies * Appendix Four: U.S. Government Sources * Appendix Five: Industry Listening Sessions * Appendix Six: Agreements with Foreign GovernmentsTo provide for our national security, America's manufacturing and defense industrial base must be secure, robust, resilient, and ready. To ensure taxpayer dollars are frugally and wisely spent, the defense industrial base must be cost-effective, cost-efficient, highly productive, and not unduly subsidized. In the event of contingencies, the industrial base must possess sufficient surge capabilities. Above all, America's manufacturing and defense industrial base must support economic prosperity, be globally competitive, and have the capabilities and capacity to rapidly innovate and arm our military with the lethality and dominance necessary to prevail in any conflict.All facets of the manufacturing and defense industrial base are currently under threat, at a time when strategic competitors and revisionist powers appear to be growing in strength and capability.
Restructuring of military forces will challenge the U.S. capability to execute the National Security Strategy. This strategy requires the continued capability to deter strategic war and respond to crisis; also we need the capability to replenish war reserves after military intervention and reconstitution of new forces in response to a renewed global threat. Adjusting to the defense drawdown through new management practices will insure a responsive Defense Industrial Base for the next decade. The success of the Gulf War may erroneously suggest a capability to fight a protracted war or to reconstitute forces. Despite the clear statements of policy in DoD Directive 5000.1, it is almost impossible to find any acquisition program document that addresses the Defense Industrial Base. This study will present the objectives desired from the defense industrial base, the courses of action the Army can pursue to attain those objectives and the tools available to Army leadership.
The ninth of a new, well-received, and highly acclaimed series on critical infrastructure and homeland security, Defense Industrial Base Protection and Homeland Security is an eye-opening account and an important reference describing a complex sector. This book was designed and written to serve and advise U.S. project designers, engineers, law enforcement and security specialists, building and grounds superintendents, and managers in charge of protecting critical infrastructure in the United States. Defense Industrial Base Protection and Homeland Security discusses the elements comprising the defense industrial base sector, many of the security measures employed to protect the various entities involved, and provides guidance on improving the resilience of the defense industrial base infrastructure. This text is accessible to those who have no experience with or knowledge of the defense industrial base sector. If you work through the text systematically, you will gain an understanding of the challenge of domestic preparedness—that is, an immediate need for a heightened state of awareness of the present threat facing the defense industrial base sector members as potential terrorist targets. Moreover, you will gain knowledge of security principles and measures that can be implemented—adding a critical component not only to your professional knowledge but also give you the tools needed to combat terrorism in the homeland—our homeland, both by outsiders and insiders.