SIGNALCapital Markets·Jun 28, 2026, 4:00 AMSignal85Short term

America seeks its McDonald’s model for missile making

Defence groups are developing modular workshops that can mass-produce cheap missiles during wartime

Why this matters
Why now

Geopolitical tensions and conflicts, particularly in Eastern Europe, are exposing critical weaknesses in Western defence manufacturing capacity and the inability to sustain prolonged engagements.

Why it’s important

This initiative signifies a fundamental re-evaluation of Western defence industrial strategy, prioritizing mass production and cost-effectiveness over bespoke, high-cost systems, which has significant implications for future security and defence spending.

What changes

The focus is shifting from a 'just-in-time' or specialized production model to one capable of rapid, high-volume output of cheaper, modular defence assets, mirroring commercial fast-food manufacturing processes.

Winners
  • · US defence primes capable of modular production
  • · Automation and robotics manufacturers
  • · Supply chain logistics companies
  • · Nations seeking rapid rearmament
Losers
  • · Traditional bespoke defence manufacturers
  • · Defence contractors reliant on low-volume, high-margin projects
  • · Nations unable to adapt industrial policy
Second-order effects
Direct

Increased availability of cost-effective missiles and other defence equipment will alter battlefield dynamics.

Second

Reduced unit costs could lead to greater proliferation of advanced conventional weapons among mid-tier powers.

Third

The 'McDonald's model' could extend to other critical industrial sectors, prompting a broader reindustrialization trend aimed at resilient, high-volume production.

Editorial confidence: 95 / 100 · Structural impact: 70 / 100
Original report

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Read at Financial Times — Technology
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