‘Can We Actually Build It?’ Defense Industry Leaders Look Ahead to Uncertain 2023
The war in Ukraine—combined with worker shortages, inflation, and other factors—has made it more difficult and more expensive to produce the most in-demand weapons.
MARCUS WEISGERBER | DECEMBER 12, 2022 01:27 PM ET
INDUSTRY CONGRESS UKRAINE
SIMI VALLEY, California—With Pentagon budgets headed for a new record, defense officials and industry executives wonder: Can contractors fulfill all the outstanding weapons orders?
Defense spending could rise 10 percent in 2023, though relatively few U.S. troops are deployed in conflict zones around the world. A good chunk of the increase is meant to rush weapons to Ukrainian forces fighting off the Russian invasion and replenish the U.S. missiles, artillery, and other weapons donated to Kyiv.
But it’s not clear whether defense companies—and more importantly, the thousands of small businesses that supply them—can meet the demand, due to a confluence of worker shortages, record-high inflation, and supply-chain disruptions that have been exacerbated by a years-long pandemic and an uncertain economic outlook. On top of that, executives say the Pentagon has been slow to award contracts to rebuild weapon stockpiles. Those that were awarded quickly were fast-tracked by top-level Biden administration officials.
https://www.defenseone.com/business/2022/12/can-we-actually-build-it-defense-industry-leaders-look-ahead-uncertain-2023/380725/
