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Release
Immediate Release

Defense Department Releases Report on Strengthening Defense-Critical Supply Chains

Feb. 24, 2022

Today, the Department of Defense (DoD) released a strategic roadmap to address supply chain vulnerabilities in the defense industrial base (DIB). Executive Order (E.O.) 14017, America’s Supply Chains, directed Cabinet agencies to assess supply chains in sectors critical for America’s economic and national security. In the report, Securing Defense-Critical Supply Chains, DoD presents recommendations for high-priority areas in the DIB, with input from other agencies, the National Security Council (NSC) and National Economic Council (NEC).

The report highlights the historic strength and value of America’s supply chains, and reinforces the need for transformative investments in the 21st century to build greater supply chain resilience. It focuses specifically on addressing challenges in high-priority areas critical to operational readiness, including kinetic capabilities, energy storage and batteries, castings and forgings, microelectronics, and strategic and critical materials. The department also highlights a set of strategic enablers that underpin overall mission success and supply chain resilience, such as workforce, cyber posture, small business, and manufacturing capabilities.  

"A clear national consensus has emerged around the need for bold action in support of supply chain resilience," said Andrew Hunter, who is performing the duties of the Under Secretary of Defense for Acquisition and Sustainment. "This report is a strategic roadmap for the department to build lasting resilience in our defense industrial base."

The department outlines not only a whole-of-government, but a whole-of-nation, strategy to assessing and strengthening supply chains critical to the DIB and overall U.S. national security. The strategy encompasses efforts needed internally within DoD, as well as those in collaboration with interagency, industry, and international partners and allies.

"Supply chain resiliency is vital to the Defense Department," said Deputy Secretary of Defense Dr. Kathleen Hicks. "We will prioritize cooperation with our defense industrial base and with all others who have a stake in our national and economic security to collaboratively safeguard global market integrity and strengthen defense-critical supply chains."

The report outlines a wide-ranging set of recommendations, including applied research, workforce development initiatives, policy and procedure reviews, and more. The department has already made significant investments in key industrial base sectors, and this report provides a blueprint for making further targeted investments to build supply chain resilience.

The full report can be found here.