Iran-related conflict underscores the necessity for America to reassess its defense supply chain, according to an expert's remarks.
In the midst of the ongoing conflict between Israel and Iran, concerns about the vulnerabilities in the defense industry's supply chain have come to the forefront. With more than 28,000 U.S.-based companies relying on technology that is made, updated, or maintained in Israel, the potential impact on these companies during times of war or conflict in Israel has become a significant issue.
Brandon Daniels, CEO of Exiger, has emphasised the need to rethink America's defense supply chain in light of these findings. He suggests shifting the focus from supply chain visibility six days or weeks out to six months to six years out to ensure maximum protection.
To make the U.S. defense supply chain more secure and resilient, several strategic steps have emerged:
1. Enhance Supply Chain Transparency and Mapping: Developing a comprehensive map of the entire defense supply chain, including Israeli technology components, is vital to understand where each part is manufactured, who produces it, and what goes into making it. This detailed visibility is crucial for identifying vulnerabilities and managing risks proactively.
2. Diversify and Secure Critical Technology Sources: Over-reliance on a limited number of foreign suppliers creates risk. The U.S. must diversify its supplier base domestically and among trusted allies to reduce single points of failure. This can include investing more in domestic production capabilities for technologies currently sourced from Israel or other nations.
3. Increase Domestic and Allied Manufacturing Capacity: Building surge capacity within the U.S. and partner countries is essential to respond swiftly during conflict. Strengthening domestic manufacturing, especially in critical sectors tied to Israeli technologies, can augment resilience.
4. Foster Stronger Integration and Communication with Suppliers: Integrating suppliers into a digital engagement platform allows real-time communication, improving coordination and rapid problem-solving across the supply chain.
5. Streamline Regulatory and Contractual Processes: Reducing unnecessary regulatory hurdles can accelerate the re-shoring of critical manufacturing processes and facilitate faster scaling of production capacity.
6. Invest in Critical Technology Development and Protection: Given that adversaries like China are aggressively advancing their military-industrial bases, the U.S. must prioritise R&D investments to maintain technological superiority.
7. Build Strategic Stockpiles and Redundancies: Maintaining ample stockpiles of critical components, including those originating from Israel, and developing redundant supply paths will mitigate risks from disruptions during conflict or geopolitical crises.
These strategic steps aim to reduce brittle dependencies and build resilient, flexible manufacturing and sourcing networks capable of sustaining prolonged high-intensity conflicts. As the National Defense Authorization Act (NDAA) for FY2026 is expected to take the issue of supply chain visibility very seriously for the department and for contractors supporting the department, the time for action is now.
In light of the vulnerabilities surfacing in the defense supply chain, Brandon Daniels, CEO of Exiger, suggests a shift in focus towards long-term supply chain visibility to secure critical assets and improve resilience. As the National Defense Authorization Act (NDAA) for FY2026 prioritizes supply chain visibility, these strategic steps aim to diversify technology sources, increase domestic manufacturing capacity, strengthen integration with suppliers, streamline regulatory processes, invest in critical technology development, and build strategic stockpiles, all to create a more resilient economy and lifestyle, capable of withstanding prolonged high-intensity conflicts.
