Global Rearmament and the U.S. Defense Industrial Base

This technical report discusses the evolving landscape of the U.S. Defense Industrial Base (DIB) amid a global era of rearmament. It outlines key structural changes that have shifted defense industrial capacity to a central strategic concern, emphasizing the need for modernization and adaptation to a more demanding environment. The report details how historical peacetime optimization has led to industrial weaknesses, highlighting the urgency for coordinated reforms in demand and supply. It also presents the challenges posed by rapid technological advancements and the competition from adversaries like China, which is accelerating its military modernization. The report identifies the necessity for shared investment and collaboration between government and private sectors to restore resilience and scale within the DIB. Furthermore, it notes the increasing autonomy of allied nations in defense production, which may impact transatlantic supply chains. Overall, the document underscores the critical nature of the DIB for national security and the importance of timely reforms to meet strategic challenges.