A joint report by the Aerospace Industries Association and Kearney outlines how U.S. aerospace and defense companies are reshaping their manufacturing strategies to establish resilient and secure supply chains.
According to the report titled “Strategic Localization: Balancing Risk, Value, and Technology Sovereignty in Aerospace and Defense Supply Chains,” nearly 60 percent of A&D companies are exploring opportunities to return production to the U.S., with 15 percent already taking steps to broaden domestic manufacturing.
“The backbone of American aerospace and defense is our supply chain. When disruptions strike, the impact is immediate,” AIA President and CEO Eric Fanning said in a statement published Thursday.
“AIA’s new report with Kearney makes clear that expanding domestic manufacturing is essential to reducing risk, accelerating innovation and ensuring we can respond rapidly in times of crisis. By investing in resilient, high-tech production at home, we not only protect our national security, but also maintain America’s leadership in the global aerospace marketplace,” added Fanning, a previous Wash100 awardee.
What Are the AIA-Kearney Report’s Policy Recommendations?
The report outlines several industry and policy recommendations to achieve a more resilient A&D supply chain. These include investing in training, reskilling programs and apprenticeships to build and maintain a pipeline of American talent. It also includes establishing transparent criteria for research, development and manufacturing support while reducing uncertainty linked to export control and procurement rules; and streamlining Small Business Administration tools and contracting processes to help smaller suppliers scale and compete.
Other recommendations include investing in AI, automation and additive manufacturing; ensuring access to rare earths and other critical minerals through domestic refining, allied sourcing and recycling; using tax incentives and multiyear contracts to reduce volatility and encourage investment and aligning on cybersecurity standards, strategic stockpiles and dual-use technology pilots.
