SIGNALDefence Tech·Jun 24, 2026, 12:33 PMSignal75Medium term

Built for another era, our air-and-missile-defense industrial base needs more builders

Source: Breaking Defense

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Built for another era, our air-and-missile-defense industrial base needs more builders

[Sponsored] The US hasn’t been able to fully meet its air-and-missile-defense requirements through its traditional suppliers.

Why this matters
Why now

The increased geopolitical tensions and lessons from ongoing conflicts highlight the inadequacy of existing defense industrial capacity, especially for air and missile defense.

Why it’s important

A constrained defense industrial base directly impacts national security, strategic deterrence, and the ability to project power or defend against emerging threats, requiring urgent recapitalisation.

What changes

The recognition of an insufficient defense industrial base shifts focus towards increasing production capacity and modernizing manufacturing processes, moving away from past 'just-in-time' lean manufacturing.

Winners
  • · Defense contractors focused on air and missile defense systems
  • · Advanced manufacturing and automation companies
  • · Governments investing in domestic industrial capabilities
Losers
  • · Traditional defense suppliers unable to scale or innovate
  • · Nations dependent on increasingly constrained foreign defense supplies
Second-order effects
Direct

Increased government contracts and funding pour into the defense industrial sector to boost production capacity.

Second

New specialized companies emerge or existing ones pivot to meet the surging demand for defense-related components and systems, fostering innovation.

Third

The global balance of power may subtly shift as some nations successfully recapitalize their defense industries faster, leading to revised strategic alliances and deterrence models.

Editorial confidence: 90 / 100 · Structural impact: 70 / 100
Original report

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Read at Breaking Defense
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